Is TDS applicable on Stipend/Internship
This query is : Resolved
23 April 2009
Sirs,
Whether any TDS is to be deducted from payments made to Trainees on account of Section 192 or any other sections under TDS?
Please advice
Whether any TDS is to be deducted from payments made to Trainees on account of Section 192 or any other sections under TDS?
Please advice
23 April 2009
Section 192 applicable.
23 April 2009
First of all stipend paid to CA article is not taxable so, NO tds can be deducted from it.
In case of other stipend in absence of employee- employer relation it will be taxable under the heand income from other sources.
and section 192(1) says that ny person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
So since the stipend is not taxable under the head salary, no TDS can be deducted out os it.
No other section is there to deduct TDS from stipend paid to trainee.
In case of other stipend in absence of employee- employer relation it will be taxable under the heand income from other sources.
and section 192(1) says that ny person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
So since the stipend is not taxable under the head salary, no TDS can be deducted out os it.
No other section is there to deduct TDS from stipend paid to trainee.
24 April 2009
First of all, stipend paid to CA students is taxable under the head Salaries and TDS is applicable u/s 192 for payment to all the trainees/interns/articles/apprentices u/s 192 as also opined by Mr.Sharma.
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