IF stipend is Rs. 20,000 per Month

4 sure Taxable

"U earn U pay tax" Simple rule

Its just like salary
 

please share the name of the CA firm........................................

It is exempt u/s 10(16), therefore it is not taxable, hence there is no question of TDS.

It is exempt u/s 10(16), therefore it is not taxable, hence there is no question of TDS.

Friends please clarify

     If Employer Employee relationship exists between the payer and payee then the amount received is taxable(Under the head Salaries).  Why dont we view the case like this?(Even though u r a trainee). 

The income from stipend should be taxed under the head Income From Other Sources...  TDS is applicable as similar to Contract payment..

Refers Case

Dr. Rahul Tugnait   Vs ITO (2009) 123 TTJ (Chd.) 251

It is exempt u/s 10(16), therefore it is not taxable, hence there is no question of TDS.

no tds deducted

ya i agree with Aaditya sir

Originally posted by : B. Umapathy PCC
	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.

 I am not able t download the pdf fle can you please upload it  in different format ?

Hi friends.....as a general practice, based on the High Court ruling (supra) and various other ITAT rulings from time to time, TDS is not deductible on stipend paid, be it beyond the exemption limit. I have practical experience, since Big4 firms pay 3rd year interns 18, 500- 20000 pm stipend. They don not deduct tax however, if such payment is considered as professional fees ( in case of secondment of articles), TDS will be deducted u/s 194J. Barring this scenario, I have not seen any case of TDS on stipend.

Cheers !!!

good question yar.. thank you raising this question.. learnt something from our friend's replies..