Hello Sir
Can TDS be done on stipend? If yes under which Section ?
TDS on stipend
PRADEEP (PTR) (100 Points)
26 February 2010
16 Replies
santhosh
(CA)
(636 Points)
Replied 26 February 2010
sec 192 only... well if you get stipend over 160000 in a year..
Ramya Kinthali
(Financial Consultant)
(108 Points)
Replied 26 February 2010
since there is no specific or general section for TDS on stipend ,TDS ned not be done......
stipend is not given for services rendered but for support of student for his education during his training or higher studies hence it canot be called as salary nor a contractual service.....
Amir
(Learner)
(4016 Points)
Replied 26 February 2010
Dear Pradeep,
Agree with Ramya, Stipened caanot be called as salary since there is no employer-employee relationship.........
Poornima
(Search on.... for knowledge)
(129 Points)
Replied 26 February 2010
Dear Amir,
Then it will be a loop hole,
I mean that u can have a professional n pay them stipend by which u r not liable to deduct TDS.
Is there any defination of stipend given in ACt??
Prasad R
(CA Final)
(2128 Points)
Replied 26 February 2010
| Originally posted by : ramya kinthali | ||
 |
since there is no specific or general section for TDS on stipend ,TDS ned not be done...... stipend is not given for services rendered but for support of student for his education during his training or higher studies hence it canot be called as salary nor a contractual service..... |
 |
I agree with Ramya there is a case law in this regard which says stipend is not taxable.
Regards
Prasad R
Amir
(Learner)
(4016 Points)
Replied 26 February 2010
Dear Poornima,
The word "stipend" is not used in Income tax, so the question of definittion doesnot arise.......
But in other statues like PF ,etc u can easily find difference betwwen
1) Employee & Apprentice
2) Salary & Stipend
Jayesh
(Article Trainee)
(21 Points)
Replied 26 February 2010
Ideally TDS should not be deducted on stipend.. Some firms are deducting it for playing safe. However, if it is deducted, u may file for a refund claim...
C.Balaji
(Learner)
(1867 Points)
Replied 26 February 2010
Amir bhai is rite..........
There is no employer - employee relationship.........
Please see this case law attached........from caclubindia......
Source : caclubindia..
Attached File : 13 29 stipend income.pdf downloaded: 273 times
saranraj
(CA FINAL)
(419 Points)
Replied 26 February 2010
There are two things to be considered.
1. Contract of service
2. Contract for service
Articleship is covered under Contract of service and there comes employer-employee relationship. Hence stipend received is taxable if it exceeds Rs.1,60,000.
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 26 February 2010
I think, a mistake which all is making here is mentioning that TDS could be deducted if it exceeds 1,60,000.00.
First thing, TDS should not be deducted at all on stipend. If it is deducted, thenwhy on 1,60,000 ????? It should be deducted when it exceeds Rs. 20,000.00. Secondly, rs. 1,60,000.00 is not the slab income wise it is assesseewise. So, even if your stipend is Rs. 12000.00 p.a., and your taxable income exceeds the prescribed slab, it will bw taxable, but only, if stipend is taxable.
If a firm is deducting your TDS then simply give them Form-H. That would work.
vivek
(Assistant Professor)
(35 Points)
Replied 26 February 2010
Thanks.
I find this thread very information
V
vivek
(Assistant Professor)
(35 Points)
Replied 26 February 2010
Thanks.
I find this thread very information
V
Recent Topics
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
- Rectification to decrease income in SCHEDULE OS
- Can Statutory Auditor of a subsidiary become concu
Related Threads
CAclubindia
