Scholarships are available for different categories of students and most of the scholarships are taxable as they are counted as income of the scholar. If you do not want your scholarship to be taxable, you will have to look for tax free scholarship before you apply. Find out everything about the scholarship. Always remember that the sponsor will not mention clearly whether the scholarship money is taxable or not. You have to find out and ask this exclusively so that you remain free from the tax problem.
However, there are conditions on which the scholarships are considered free. For example, if you are part time or full time student for a degree at an accredited institution, if the award covers fees as well as tuition to attend an educational institution or the award money covers fees as well as other educational expenses for your courses. The scholarship money will be tax free when you will use the money for the purpose it is allotted for. On the other hand if the scholarship money is used to pay for room and board, travel, research, equipment, clerical help and so on, the money is taxable.
Finding out whether you are applying for free scholarship or not is very important for you and your future. If you are not sure whether the scholarship you are going to apply is taxable or not, you should ask the organization so that you get sure about things and it becomes clear to you whether your scholarship money is going to be added as your income or not. It is good to be aware of things before you apply for any scholarship so that you apply for only those scholarships which fit in your criteria. This will make your life easier and help you plan for your future in a better way.
Try to apply for free scholarship in first round so that you can be counted for the first come first serve basis and also there would be no chance of missing the application at any cost. Impress the panel so that they consider you as the best candidate.