Taxability of stipend received by trainee doctors

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Kishor Datta

Kishor Datta (Querist)
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31 August 2019 Whether stipend received by trainee doctors is taxable or not ?

CA. Punith Harish

CA. Punith Harish (Expert)
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31 August 2019 As per section 10(16) of Income Tax act 1961, scholarship granted to meet the cost of education’ is exempt from tax. Now the question arises should we consider Stipend as ‘Salary’ or as ‘Scholarship'.
Trainee doctors earn stipend as they pursue a higher degree at a hospital. Such work by the trainee doctor is similar in nature to that of a full time employee. The trainee doctor is gaining experience from such work and performing duties like regular doctors, in such cases your Stipend may be taxed.