Stipend to medical officer pursuing post gradutaion

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CA AC (Querist)
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08 July 2013 Facts of Case are as below :
1. Stipend (mentioned in the appointment letter as "stipend")received as Medical officer undergoing Post graduation with a central government hospital without any employer- employee relationship.

2. No TDS is deducted by the hospital for the stipend given although its above the basic exemption of 200000 and is also reported in FORM 26AS under section 192 but without deducting any TDS.

Query :

1. Whether this stipend is exempt or taxable?

2. If exempt than whether assesee should file ITR-1 or ITR-2? ( as it is mentioned on income tax site that any exempt income above 5000 then ITR -2 is to be filled)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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08 July 2013 Since it dosent hve specifically employer-emloyee reltionship then it cant be taxed as income from salary.

it should be treated either as income from profession or income from other source.

CA AC

CA AC (Querist)
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08 July 2013 Mr.Sampat..it's not about under which head it will be charged...rather whether it is taxable or exempt is the main question and also second part is linked to that answer.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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08 July 2013 Mr CA AC its obvisouly taxable if it exceeds 2,00,000.

CA AC

CA AC (Querist)
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08 July 2013 Why cant you understand Mr. Sampat....if something is exempt even it it exceeds basic exemption slab it is not taxable..thanks for your reply....i guess u did not get it..somebody else please

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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08 July 2013 There is a case law that even if its stipend but if it exceeds basic slab then its taxable.

CA AC

CA AC (Querist)
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08 July 2013 Thanks again....u not getting it at all
...Anyone else on the query?

Ganeshbabu K

Ganeshbabu K (Expert)
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08 July 2013 Stipend is exempt income under sec.10(16),

https://www.caclubindia.com/experts/filing-of-return-1314409.asp

Please refer

sudhir kumar sharma(ca article)VS ITO

Thanks & regards
Ganesh babu k

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Ganeshbabu K

Ganeshbabu K (Expert)
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08 July 2013 Please refer below link for more cases references

https://www.caclubindia.com/experts/taxability-of-stipend-received-during-articleship-326975.asp

1)exempt under section 10(16) refer above case laws specified

2)ITR-2 will be applicable..as exempt income more than 5000

Thanks & regards
Ganesh babu k

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 July 2013 i) Stipend is tax free. Citation :- A. Ratnakar Rao vs. Addl. CIT 128 ITR 527 (Kar).

ii) If she/he has no other income, return filing is not mandatory since her /his total income which is assessable under the act is zero. Ref:- Section 139(1)(b).

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CMA RV Padmakumar.A

CMA RV Padmakumar.A (Expert)
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09 July 2013 Stipend is not tax free ,, if someone is getting rs 500000 p a as stipend is it still tax free????

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 July 2013 Income-tax Officer Vs. Dr. G.N. Ramachandran 1 ITD 902. In this case also, stipend amount is in terms of lakhs when converted into Indian currency. Tribunal said it is tax free.

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CA AC

CA AC (Querist)
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09 July 2013 Thanks a lot Mr.Ganesh babu k & Mr. B. Chackrapani....!

Can you guys throw some more clarity on filing ITR-1 0r ITR-2...i also agree Mr. Ganesh Babu that ITR-2 is to be filled...but since stipend is exempt income does it fall under the creteria of exempt income above 5000 mentioned in condition for ITR 2?

Ganeshbabu K

Ganeshbabu K (Expert)
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09 July 2013 DIVIDEND INCOME IS EXEMPT U/S 10(34)

AGRICULTURE INCOME EXEMPT UNDER SECTION 10(1)

WE SHOW ABOVE TWO EXEMPT INCOME IN ITR2 "Shedule EI" ONLY

IN THE SAME WAY STIPEND EXEMPT INCOME U/S 10(16)

AND WHAT EVER EXEMPT INCOME UNDER SECTION 10 I AM IN A OPINION TO SHOW SUCH INCOME IN "SHEDULE EI" OF ITR 2

MORE OVER IF WE HAVE NOT USED ITR2 IT IS NOT POSSIBLE US TO DISCLOSE THE STIPEND INCOME IN ITR1

Thanks & regards
Ganesh babu k