Fellowship amount

The stipened Income shall Be Taxable Under the Head "Income from Other Sources"

1. Stipened being an amount received during the course of his/ her Training.

2. It Shall be taxable under the head Income from Other Sources & not under the Head Salary.

3. In case the Gross Total Income including such Stipened doesnot exceed the Basic Exemption Limit ie Rs. 3 Lacs, your friend need nnot pay any tax.

4. Tax need not be paid on Stipened Income individually/ seperately. Amount In Excess of Rs. 3 Lacs after Deduction shall be subjected to Tax at Normal Rates as precribed in the Act.

Dear mansha...

Stipend income is included u/h income from other sources. if this is the only income(3000*12) then there is no need to pay tax.

If he has other income also then slab rate will be applicable accordingly.

Net total income upto Rs 2,50,000/- is exempt.

Hitesh, basic exemption limit is 2,50,000 for this year & not 3,00,000/-