Should TDS be deducted on Stipend

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This query is : Resolved

Venkatesh (Querist)

19 February 2011 Should the TDS be deducted for Stipend paid for the interns who are for a duration of 6 months on temporary basis, amount paid 15000 per month?

Guest

Guest (Expert)

20 February 2011 No TDs is required.

Venkatesh

Venkatesh (Querist)

21 February 2011 What if the amount paid exceeds 1.6 lakh per annum and should we deduct the Professional Tax also?

UMA SHANKER SHARDA

UMA SHANKER SHARDA (Expert)

21 February 2011 If payment exceeds Rs.1.60 Lac, and savings U/s80 c are not, than TDS is to be deducted and Prof. Tax is to be deducted as per state govt. provisions of your state.

Guest

Guest (Expert)

22 February 2011 In my opinion, stipend is not the salary as it is given to trainees and not the employees. Relation between a emploer and trainer is not the relationship of employer and employee. However, to avoid the any probable controversy, tax can be deducted treating it as salary.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)

24 February 2011 Hi,

In My opinion Stipend is chargeble under the Income From Other Sources as it cannot be chargeble under any other head of Income.

If Income Exceeds 1.6 Lacs {Assuming Assessee is a male Individual} and no deductions under Sec 80 C, then TDS needs to be deducted.

Thank you,

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)

26 February 2011 As far i think Apprenticeship Trainee are not treated as employee nor it will treated as management and consultancy services so i think no TDS should be deducted from the payment made to Apprenticeship Trainee .

Further more payment and any deduction therefrom to any apprenticeship Trainee should be as per the apprenticeship Agreement signed by them .
If there is not mention any thing about TDS than in no case TDS should be Deducted .

Although all of your's advice are recommended

Thanks & Regard

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