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TDS on stipend

Sujit Talukder (service) (719 Points)

29 May 2008

Is TDS applicable on Stipend payment to trainees ? In case where the stipend payment is Rs 2,00,000 per annum is TDS is applicable on this amount? If yes, under which section?

My view is that since employer employee relationship doesnot exist with trainee, TDS cannot be made u/s 192 for salary..

Expert view solicited.

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8 Replies

Gayathri Devi (CA Final) (882 Points)
Replied 29 May 2008

As persec 192 of Income Taxact is applicable only to the salary & not to the stiphend At the same time there is no employer & employee relationship

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Sujit Talukder (service) (719 Points)
Replied 29 May 2008

Thanks but you ahve only repeated my views What about your views? Is TDS appliacble under any other section?

CA Akshat (article) (422 Points)
Replied 29 May 2008

if u r in PWC, and ur stipend is more than 20,000 u will recieve the amt net off TDS as they pays u as professional charges and TDS will be done u/s 194J

Sujit Talukder (service) (719 Points)
Replied 29 May 2008

Thanks but that will depend on the situation ie if stipend is paid as professional fees. But in my situation, contract of training is made under the Apprentice Act and stipend is paid there upon. SO is TDS applicable thereon?

If Possible could you provide more information on TDS on stipend by PWC?

First!!!! (student) (162 Points)
Replied 29 May 2008

stipend is not taxable as there is no charging section for the same. And even there is no employer employee relationship between the two the relation is of an article student and principal so stipend is not taxable