08 July 2013
Facts of Case are as below : 1. Stipend (mentioned in the appointment letter as "stipend")received as Medical officer undergoing Post graduation with a central government hospital without any employer- employee relationship.
2. No TDS is deducted by the hospital for the stipend given although its above the basic exemption of 200000 and is also reported in FORM 26AS under section 192 but without deducting any TDS.
Query :
1. Whether this stipend is exempt or taxable?
2. If exempt than whether assesee should file ITR-1 or ITR-2? ( as it is mentioned on income tax site that any exempt income above 5000 then ITR -2 is to be filled)
08 July 2013
Mr.Sampat..it's not about under which head it will be charged...rather whether it is taxable or exempt is the main question and also second part is linked to that answer.
08 July 2013
Why cant you understand Mr. Sampat....if something is exempt even it it exceeds basic exemption slab it is not taxable..thanks for your reply....i guess u did not get it..somebody else please
09 July 2013
i) Stipend is tax free. Citation :- A. Ratnakar Rao vs. Addl. CIT 128 ITR 527 (Kar).
ii) If she/he has no other income, return filing is not mandatory since her /his total income which is assessable under the act is zero. Ref:- Section 139(1)(b).
09 July 2013
Income-tax Officer Vs. Dr. G.N. Ramachandran 1 ITD 902. In this case also, stipend amount is in terms of lakhs when converted into Indian currency. Tribunal said it is tax free.
09 July 2013
Thanks a lot Mr.Ganesh babu k & Mr. B. Chackrapani....!
Can you guys throw some more clarity on filing ITR-1 0r ITR-2...i also agree Mr. Ganesh Babu that ITR-2 is to be filled...but since stipend is exempt income does it fall under the creteria of exempt income above 5000 mentioned in condition for ITR 2?
CAclubindia
