Tds deductible on stipend or not

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Querist : Anonymous

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Querist : Anonymous (Querist)
30 January 2016 I AM A TRAINEE AT A LISTED COMPANY UNDER COMPANY SECRETARYSHIP COURSE . I AM ENTITLED TO RECEIVE A STIPEND OF 15000 RS PER MONTH OUT OF WHICH 10% (1500 RS) IS DEDUCTED AS TDS ON SALARY .

MY QUESTION IS : CAN TDS BE DEDUCTED ON STIPEND ??

BECAUSE A TRAINEE IS NOT AN EMPLOYEE OF THE COMPANY, SO HE IS NOT A SALARIED PERSON , HENCE NOT ELIGIBLE FOR TDS DEDUCTION .

CORRECT OR WRONG ... PLS DROP YOUR EXPERT OPINIONS .

30 January 2016 Such payment to trainee's will be treated as salary and TDS will be applicable.

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Querist : Anonymous

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Querist : Anonymous (Querist)
15 July 2016 as far as i have heard from experts tds is not applicable on it being a trainee/apprentice and not an employee of the company .

15 July 2016 If the payment exceeds basic exemption limit, then TDS is attracted, if the payment is not exempted from tax.


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