IF stipend is Rs. 20,000 per Month

Page no : 3

Rahul Agarwal (Future CA) (217 Points)
Replied 10 December 2010

4 sure Taxable

"U earn U pay tax" Simple rule

Its just like salary

Upgrade to CAclubindia Pro. Subscribe Now!

Abhishek Jain (RisK Manger) (231 Points)
Replied 10 December 2010

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

VISHAL PATIL (ARTICLE ( ITS COMPLETED)) (80 Points)
Replied 10 December 2010

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

VISHAL PATIL (ARTICLE ( ITS COMPLETED)) (80 Points)
Replied 10 December 2010

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

B. Umapathy (student) (405 Points)
Replied 10 December 2010

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).

Upgrade to CAclubindia Pro. Subscribe Now!

Adityakumarhv (CA Final) (45 Points)
Replied 10 December 2010

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

VISHAL PATIL (ARTICLE ( ITS COMPLETED)) (80 Points)
Replied 10 December 2010

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.

nitin malik (articled) (21 Points)
Replied 11 December 2010

no tds deducted

(Guest)

ya i agree with Aaditya sir

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 11 December 2010

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 ?

Upgrade to CAclubindia Pro. Subscribe Now!

CA Asfar Hashmi (Research Associate) (81 Points)
Replied 12 December 2010

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 !!!

1 Like