19 July 2013
SIR, STIPEND RECEIVED BY A MEDICAL STUDENT IS Rs. 288000. THE AMOUNT IS RECEIVED THROUGH BANK. IS IT TAXABLE, IF YES, UNDER WHICH HEAD AND CAN CLAIM ANY EXPENSES?
19 July 2013
A simple logical approach can be applied here- . Whether the Payer has any liability to deduct TDS upon such payment to the students ? . Whether the amount is paid to meet the cost of education or is forming part of the compensation for the services ? . Whether stipend payment for excess leave taken by the student is deducted from the emoluments or not ? Student remains a student on leave also- but why lesser scholarship is given ? . So, it can be decided from the facts and circumstances of the case only. .
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