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Stipend change to salary

This query is : Resolved 

05 June 2009 Hi,

we have one trainee to whome we was paying him stipend of Rs 20000/- without any deduction, from june he is becoming employee now his package will be about 4 lac, while calculating tax do need to add his april may income also?? should i leave it coz that was stipend and calculate tax on his remaining 10 months salary?? waiting for reply.

Nazir

05 June 2009 stipend should be included in total income but not as salary.It will be taxable as Income from other sources.

05 June 2009 Stipend Income is taxable as income from salary u/s 17(1) of the Income Tax Act, 1961.




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