Is TDS applicable on Stipend/Internship
This query is : Resolved
23 April 2009
Sirs,
Whether any TDS is to be deducted from payments made to Trainees on account of Section 192 or any other sections under TDS?
Please advice
Whether any TDS is to be deducted from payments made to Trainees on account of Section 192 or any other sections under TDS?
Please advice
CA Tilak Raj Sharma
(Expert)
23 April 2009
Section 192 applicable.
Manmohan ACA, CS
(Expert)
23 April 2009
First of all stipend paid to CA article is not taxable so, NO tds can be deducted from it.
In case of other stipend in absence of employee- employer relation it will be taxable under the heand income from other sources.
and section 192(1) says that ny person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
So since the stipend is not taxable under the head salary, no TDS can be deducted out os it.
No other section is there to deduct TDS from stipend paid to trainee.
In case of other stipend in absence of employee- employer relation it will be taxable under the heand income from other sources.
and section 192(1) says that ny person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
So since the stipend is not taxable under the head salary, no TDS can be deducted out os it.
No other section is there to deduct TDS from stipend paid to trainee.
CA Nitin Wadhwani
(Expert)
24 April 2009
First of all, stipend paid to CA students is taxable under the head Salaries and TDS is applicable u/s 192 for payment to all the trainees/interns/articles/apprentices u/s 192 as also opined by Mr.Sharma.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
