Professional applicability on stipend.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 Dear Sir,

My principal is deducting p.t on my stipend.
according to my principal i am getting stipend more than institute slabe, so i am liable to pay p.t.
Please confirm me p.t is applicable or not.

thanks

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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11 February 2013 That should not be the case. When I was articled in one of the big 4s, there was no deduction of PT>

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Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 can u please tell how can i prove it to my principal. there is any rule regarding this.

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CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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11 February 2013 You need to check up the respective act of the state. Further, there have been decisions where income from stipend has been exempted under income tax act.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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11 February 2013 You can refer to the case law here -

http://taxguru.in/income-tax-case-laws/scholarship-stipend-received-by-a-student-for-pursuing-higher-studies-cannot-be-treated-as-salary.html

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 thank you sir....

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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11 February 2013 Always Welcome.