TDS on stipend

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Vid (Querist)
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02 July 2009 TDS U/s 194 J has been deducted on my stipend as an industrial trainee. I had explained the co. that stipend is not taxable but they did not budge. Now to claim the TDS I would have to file ITR IV showing the stipend income as professional income? Is this appropriate?

Regds

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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02 July 2009 No

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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02 July 2009 Tax should have been deducted under Sec.192 as Stipend Income is taxable as Income From Salaries.

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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03 July 2009 section 192 clearly specifes that it TDS u/s 192 will be deducted only on the income which is taxbale under head salaey, since stipend is ot taxable as salary no tDS u/s 192 in stipend

Vid

Vid (Querist)
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05 July 2009 Hello! Thanks for the reply. So, which ITR form should I use if not ITR IV to claim refund of the TDS deducted out of my stipend U/s 194J.
Other than the stipend income I have a meagre amt of interest income.
Thanks in advance
Regds

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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05 July 2009 Yes.
Since tax is wrongly deducted on 194J you should ITR-4 and also you can claim the expenses which you have incurred for earning such stipend such as books, conveyance expenses etc.