Fellowship by Department by Atomic Energy-

A reference is invited to the Board’s Circular No. 6(XXIII-27) of 1962, dated 24-3-1962, according to which the Junior and Senior Research Fellowships, instituted by the Department of Atomic Energy, of the value ofRs. 250 p.m. and Rs. 400 p.m. respectively, for study and research in the field of Nuclear Physics and Cosmic Rays are to be treated as exempt from tax in the hands of the recipients under section 10(16) as being scholarships granted to meet the cost of education.

The Department of Atomic Energy has now stated that the scope of these Fellowships has been extended to cover various other fields of research in Agriculture, Bio-chemistry, Bio-physics, Botany, Zoology, Organic Chemistry, Electronics and Microbiology. The values of the Fellowships have also been increased as below :

The Board have decided that the abovementioned allowances in the various fields should be treated as exempt from tax in the hands of the recipients under section 10(16) as being scholarships granted to meet the cost of education.

Letter :F. No. 25/37/66-IT(A-I), dated 2-12-1966.

CLARIFICATION 5

Financial assistance to research workers in universities- Under the scheme for grant of financial assistance to teachers in the universities for undertaking research or learned work in science subjects and humanities (including social sciences) as non-recurring grant (subject to a maximum of Rs. 5,000) is payable to the teachers for purchase of special apparatus, special chemicals, stores’ books, consumables, etc., and for field-work in connection with the research. The above grant will be exempt from tax under section 10(16).

Letter :F. No. 24/7/64-IT(A-I), dated 24-3-1964.

Fellowship by UGC - The research fellowships in engineering technology, humanities and science subjects given by University Grants Commission will be exempt under section 10(16). The contingent grant of Rs. 1,000 per year to meet petty expenses will also be exempt under section 10(14) of the Income-tax Act, 1961.

Letter :F. No. 24/34/62-IT(A-I), dated 25-1-1963.

Junior and senior research fellowship awarded by CSIR

The Council of Scientific and Industrial Research, New Delhi, awards junior and senior research fellowships to young research workers of Indian citizenship for enabling them to carry on research in various branches of science in the Council of Scientific and Industrial Research establishments, Research Associations’ Laboratories and other institutions approved by the Council. The allowance attached to a junior research fellowship is Rs. 200 p.m. (Rs. 300 in the case of certain engineering subjects) and in the case of senior research fellowship, it is Rs. 400 (Rs. 500 in certain engineering subjects). The tenure of each fellowship is normally for a period of two years.

The Board have decided that the abovementioned allowances should be treated as exempt from tax in the hands of the recipients under terms of item 5 of the late Finance Department’s Notification No. 878-F-IT, dated 21-3-1922 (as amended from time to time) under section 60(1) of the Indian Income-tax Act, 1922 as being scholarships granted to meet the cost of education.

Circular :No. 3(XX-III-23), dated 12-1-1961.

Fellowship awarded under technical teachers training programme - The Ministry of Scientific Research and Cultural Affairs awards about 100 fellowships under the Technical Teachers’ Training Programme to prepare graduates for the teaching profession. The fellowships are of the value of Rs. 350-25-400 and do not carry any additional allowance. The duration of a fellowship ranges from 2 to 3 years. It has been represented that the value of the fellowship may be exempted from income-tax.

The Board have decided that out of the total value of the fellowship, an amount of Rs. 250 p.m. (representing the cost of education) may be treated as exempt from income-tax. This amount will be fully exempt and is not to be included in the total income of the individual concerned for any purpose.

Circular :No.11(XXIII-24) [F. No. 27/67/60-IT(A-I)], dated 4-4-1961.