Is TDS applicable on Stipend/Internship

This query is : Resolved

Jayanta (Querist)
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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

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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23 April 2009 Section 192 applicable.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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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.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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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.

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