TDS on stipend

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This query is : Resolved

Vid (Querist)

02 July 2009 TDS U/s 194 J has been deducted on my stipend as an industrial trainee. I had explained the co. that stipend is not taxable but they did not budge. Now to claim the TDS I would have to file ITR IV showing the stipend income as professional income? Is this appropriate?

Regds

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

02 July 2009 No

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

02 July 2009 Tax should have been deducted under Sec.192 as Stipend Income is taxable as Income From Salaries.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

03 July 2009 section 192 clearly specifes that it TDS u/s 192 will be deducted only on the income which is taxbale under head salaey, since stipend is ot taxable as salary no tDS u/s 192 in stipend

Vid

Vid (Querist)

05 July 2009 Hello! Thanks for the reply. So, which ITR form should I use if not ITR IV to claim refund of the TDS deducted out of my stipend U/s 194J.
Other than the stipend income I have a meagre amt of interest income.
Thanks in advance
Regds

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

05 July 2009 Yes.
Since tax is wrongly deducted on 194J you should ITR-4 and also you can claim the expenses which you have incurred for earning such stipend such as books, conveyance expenses etc.

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