Income Tax deduction on Stipend

This query is : Resolved

SURYA NAGARAJU GANTI (Querist)
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27 December 2022 Dear Associates,
Request you to clarify a MBBS student is acquiring his/her PG studies from National Board of Examination Diploma (NBE Diploma) in any specialization, they will get Rs. 35000/- for their first year of study and Rs.37000/- for their 2nd year study as a stipend.

Is the stipend is taxable under Income Tax 1961 'or' stipend is exempted from Income Tax. Request you to give some updates on this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 December 2022 This payment is for the work done during this period hence it's taxable.
Opt for new scheme no TDS applicable upto 5 lacs of such annual payment.