Income Tax deduction on Stipend

Save Share

This query is : Resolved

Quick Summary

This discussion seeks clarification on whether stipends received by MBBS students pursuing PG studies via NBE Diploma are taxable under India's Income Tax Act 1961. While some suggest the payment for work done makes it taxable, others note that no TDS is deducted, and a new scheme exempts payments up to 5 lacs annually.

SURYA NAGARAJU GANTI

SURYA NAGARAJU GANTI (Querist)
Follow

27 December 2022 Dear Associates,
Request you to clarify a MBBS student is acquiring his/her PG studies from National Board of Examination Diploma (NBE Diploma) in any specialization, they will get Rs. 35000/- for their first year of study and Rs.37000/- for their 2nd year study as a stipend.

Is the stipend is taxable under Income Tax 1961 'or' stipend is exempted from Income Tax. Request you to give some updates on this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

27 December 2022 This payment is for the work done during this period hence it's taxable.
Opt for new scheme no TDS applicable upto 5 lacs of such annual payment.