Dear Sir/Madam,
in Karnataka as you are aware we have to follow minimum wages, we have new trainees and planning to pay as stipend which is around 10k to 15k. is it mandatory to follow the minimum wages which is above the stipend amount? what are the deductions they will have ?
The Income Tax Act has further laid down that ‘scholarship granted to meet the cost of education’ is exempt from Income Tax under the section 10(16).Now the question arises should we consider Stipend as ‘Salary’ or as ‘Scholarship’. For this we must review the terms under which such Stipend is paid
Is Stipend Income Taxable? (cleartax.in)
CAclubindia
