Is tds applicable on casual salary

This query is : Resolved 

Querist : Anonymous (Querist) 11 January 2017

i am a student, and i have just started my paid internship at one of he big fashion companies, i am receiving stipend worth 10000. they have been cutting 10% from my stipend and told me that its a compulsory deduction for tds and i will get this amount back when i file for it returns and my income would be less than 2.5lakhs. but as i have been told that tds amount is not deducted on casual income. please help me, is the deducted amount legal or it should not be deducted.

as i am a student of designing and not familiar with these terms, so kindly help me

Mrs. N Jain (Expert)
11 January 2017

The Company is right deducting TDS @ 10% as the amount being paid to you is treated as Professional fee by the Company

Querist : Anonymous (Querist) 11 January 2017

but i have been told it is not applicable on casual income or income less than total 2.5 lakhs............
even if the company deducting is right, so from where will i get the amount when i will file for income taxt nd my salary will be lower than the requisite amount for tds, from the incometax dept??

Mrs. N Jain (Expert)
11 January 2017

Your income is not a casual income. Income tax on a Total income up to Rs. 2.50 lakh is exempted and therefore you need to file a return of income and claim refund of the TDS

Querist : Anonymous (Querist) 11 January 2017

thankyou so much for clearing my query......

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