Ya! I'm clear abt scholarships now.....

I got my answer, thanks a lot.

feel lucky to join this site.....

For 2007 and subsequent years, all elementary and secondary school scholarships and bursaries are not taxable and are not subject to the requirement that they be eligible for the education amount. However, they are considered as income by OSAP and need to be declared on your OSAP application unless you have been notified in writing that the award will be reported on your behalf. Also, this scholarship will be reported to the Canada Revenue Agency on a T4A form. While this scholarship is not taxable to you, the student, the reason it is reported to the CRA is that it is considered as income and anyone attempting to claim you as a dependent on their income tax return such as a parent, would have to show this as income ( but not on their tax return ) in order to determine whether you could be claimed as a dependent or not. Once your income reaches a certain level, whether it is taxable or not will determine whether someone else, usually a parent, can claim you as a dependent

I trust that I have answered your query

Good Luck and have a GREAT DAY

thanks for reply but still confused....

here scholarship is received from secondary school (which is not eligible for education amnt I guess..) but student will join university (eligible for education amnt) in the same year so scholarship is fully exempt?

please help.

Currently, if scholarship income is received in connection with your enrolment in a program for which you can claim the education amount, an exemption is available up to the full amount of the scholarship income. If this is not the case, an exemption from income is granted for the first $500 of the scholarship income that you receive in the year.

For 2010 and subsequent years, the budget proposes that the exemption for scholarship, fellowship or bursary income ( referred to as scholarship income ) that you received in the year in connection with an educational program for which you claim the education amount will be limited as follows:
1. For all scholarship income, the exemption will be allowed only to the
extent that it is reasonable to conclude that the scholarship income

was intended to support your enrolment in the program.

2. For students who are eligible to claim only the part-time education

amount related o the program, the scholarship exemption will be

limited to the tuition fees and costs incurred for program-related

materials in respect of the educational program.

The scholarship exemption for the first $500 of scholarship income still applies to both cases.

If a student gets scholarship for an excellent work from school, and is going to university next year is he eligible for full exemption or only $ 500????

please guide me....