Tds on stipend

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This query is : Resolved

Lakshmi (Querist)

15 October 2013 For IIMs, will the stipend paid to doctoral students be taxable if the amount is around Rs.3,00,000 per annum?

CA Parul Saxena

CA Parul Saxena (Expert)

15 October 2013 In my opinion tds must be deducted on stipend wait for the other's opinion

Ajay Mishra

Ajay Mishra (Expert)

15 October 2013 Hi

Generally TDS is not deducted on stipend, but I will suggest you to check of your by laws which is applicable in your medical profession.

CA Pallav Singhania

CA Pallav Singhania (Expert)

15 October 2013 Agree with Ajay Sir,
TDS generally not applicable in case of stipend..
As per sec 192/194J of Income Taxact is applicable only to the salary/Professional fee & not to the stiphend At the same time there is no employer & employee relationship..

However some BIG firms and Companies deduct TDS U/S 194J just to play safe..

@VaibhavJ

@VaibhavJ (Expert)

15 October 2013 Hi Laxami,

Whether this stipend is paid as per the any guidelines or rules framed by Govt. Authority?

If yes then same will be exempt to the extent amount notified thunderer.

Otherwise it is taxable to extent it is paid in excess of exempt amount or whole of the amount.

S/10(16) of Income Tax Act governs exemption for stipend.

Thanks//VaibhavJ