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B.Com Scholarship Winners: Are Your Awards Tax-Free?

Yes, they are tax free! B.Com scholarships are like golden tickets to financial aid dreamland, students often have to face the tax monster lurking in the shadows. Here’s a low down of it:
Section 10(16)
Under Section 10(16) of the Income-tax Act of 1961, any sum received as a scholarship to cover educational expenses is excluded.
Scholarship Facts
Scholarships include not only the tuition fee but also any other fee (living expense, insurance) associated with pursuing an education.
Tax Exemption Rule
- Scholarship tax-free, but only for education expenses.

- Just like with any financial transaction, students must know tax rules.
Tax Deducted at Source (TDS)
- If the scholarship amount surpasses a threshold, TDS will be applicable.

- Scholarship sponsor might take out tax (TDS) before you get the money. 
TDS Deduction on Scholarship
TDS can lower your scholarship amount, making it harder to cover all your education costs like tuition and supplies.
So, while you're busy celebrating your scholarly victory, a sneak-peek into the tax rulebook will always be beneficial.