CA Mayur Sojrani (CA) (318 Points)
09 December 2010If a Person is going through his Industrial Training and getting stipend of Rs. 20,000 Per Month (i.e Rs. 2.40 lacs pa) , and having Rs. 10,000 as other income ,should the TDS be deducted from his stipend.
Is the full amount od Stipend is taxable or expenditure can be claim like our Coaching classes fees, Institute Registration fees, Conveyance and daily expenditure incured to earn the stipend.
friends plz suggest
Amit Nishania
(CA Final - Student)
(495 Points)
Replied 09 December 2010
no, TDS will not br deducted on stipend..
Surya Jain
(Student)
(944 Points)
Replied 09 December 2010
As per Income tax sec 10, any person getting salary or stipend during his/her training period is totally exempt from tax, so in the given case also there will be no tax on the income.
CA Mayur Sojrani
(CA)
(318 Points)
Replied 09 December 2010
you mean to say the total stipend of Rs. 2.40 lacs is exempt from tax
CA Mayur Sojrani
(CA)
(318 Points)
Replied 09 December 2010
but as such I know Stipend is taxalbe if it exceed the Non Taxable limit. there r past judgements the stipend is exempt irrespective of the amount.
But there after some notification was issued regarding the taxability, and says that the stipend is taxable if it exceed the Non taxable limit
CA Amit Talada
(CA, NCFM (level IV))
(4016 Points)
Replied 09 December 2010
Whether the stipend paid to trainee is taxable if taxable under which section or head of income… If exempted, section please… ….From: ramprasad_mba @ …..com Stipend may be taxable or may not be taxable based on the fact of the case. First visit the scope of total income which is defined in section 5 of the Act. It says “5. (1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which (a) is received or is deemed to be received in India in such year by or on behalf of such person ; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or (c) accrues or arises to him outside India during such year “ Thus all receipts are taxable unless exempt expressly under the I T Act. Stipend is not expressly exmept under the Act. Thus Stipend is certainly taxable income if it is purely being given in form of cost of living or as wages or salary or for any purpose but studies . However, if the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the I T act . In this regard the decision of the Karnataka High Court in A. Ratnakar v. Addl. CIT [1981] 128 ITR 527 can be applied.This was also followed by Tribunal in case of Income-tax Officer v. Dr. G.N. Ramachandran
CA Amit Talada
(CA, NCFM (level IV))
(4016 Points)
Replied 09 December 2010
i think stipend given to a trainee under CA act does not come under the ambit of Sec 10(16), Cosidering that the CA is a private course and that the amount is 20000 pm and further, it is not in nature of scholarship or furtherance of studies, it is in nature of salary for services.
SANDEEP AGGARWAL
(SELF PRACTICE)
(99 Points)
Replied 09 December 2010
Hello Mr.Amit Talada... Who Said you that CA is private course?
Our institute is Registered Under the Parliament
So how can u said that the course is Private.
CA Mayur Sojrani
(CA)
(318 Points)
Replied 09 December 2010
thanks for explaination ...!
But what about the TDS ..!
Is TDS is applicable.?
If yes u/s which section.?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 09 December 2010
TDS may be deducted u/s 192
CMA.Manikanta
(Grad-CMA &CA-Final)
(314 Points)
Replied 09 December 2010
come on man ur upcoming ca............
no tax nothing........................................
CA Mayur Sojrani
(CA)
(318 Points)
Replied 09 December 2010
But such kind of pratice are not working in big industries....!
Raghunath Prasad
(WORKING)
(385 Points)
Replied 09 December 2010
There is no tax liability for ca articale traning and the industrial traning is part of training so its exempt for tax and no tds deducted
B. Umapathy
(student)
(405 Points)
Replied 09 December 2010
Stipend is not taxable, but stipend received during industrial training is taxable. However here i annexed a case law regarding taxability of receipt of stipend.
Naman
(Accountant)
(339 Points)
Replied 09 December 2010
Stipend is exempt from income tax. TDS can't be deducted from any income that is exempt. TDS, therefore, on stipend in can't be deducted at all whether it is Rs.1000 or Rs.20000.
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