IF stipend is Rs. 20,000 per Month

i have been in ambuja realty grp were no TDS was deducted on the stipend for CS and CA trainee as well as in electrosteel, so no TDS will be deducetd on the stipend during the training period...

Stipend is taxable under the 'Income from other source'.

As far as TDS on Stipend is concerned, there is no specific clause or section which is related to it. Hence TDS on Stipend is not applicable.

As per section 10(26) stipned or anything provided while training period to meet expenditure on studies is exempt from tax......

but the same is provided for coaching and study material etc..... So if u can prove that all 240,000/- is going to be spend on Studies then there is no need to deduct TDS and if Assessing Officer is proving that u not spending whole amount on ur studies then he can disallow some amount...... So its based on persons judgement.................

One of ma friend went in Big firm after clearing final as an article as his articleship was reamining then also TDS was deducted from his stipned as there was no reason he is goin to spend money on studies......

First of All...

Who is that employer giving Rs.20,000 PM as Stipend yaar??

Bathaa dho..

Yahaa ek life set ho jaayegi..!!!

Smile on...!!!

If income is exempt question of deducting tax at source does not arise. This is so because Tax is required to be deducted by the payer for paying any "income" that is taxable under the act like salary, contract charges etc.

Stipend is taxable and not exempt u/s 10(16). See this link for a detailed discussion on the same.

IS Stipend under Salary - Income Tax Forum

The case law cited is no longer relevant.

The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench which states that stipend received by CA student is exempt.

In the case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16) and hence not relevant in recent times.

Stipend Rs. 20,000... in your dreams.. so don't worry about TDS?

And for the fight for amount of stipend of Rs. 20,000/- see the person is into industrial training where the stipend ranges between Rs. 15,000/- - Rs. 25,000/-. So no problem in the amount of stipend being received by him.

No TDS WILL BE DEDUCTED ON

Originally posted by : Aditya Maheshwari
	The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench which states that stipend received by CA student is exempt. In the case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16) and hence not relevant in recent times.

 thank you aditya sir for you clear explainations ....!

But what about the expenses which are allowed to claim as against the stipend earned.

Can exp like Tution fees Amt Rs. 50,000/-, ICAI registration fees Rs. 8,500 and other daily expenses like conveyance are allowed......?

& What other tax planning can be done so as to get far from tax liability.

No Tax planning or any expenses to be allowed.

you mean to say no expenditure is allowed on the stipend earned.......!

Originally posted by : B. Umapathy PCC
	Stipend is not taxable, but stipend received during industrial training is taxable.  However here i annexed a case law regarding taxability of receipt of stipend.

thank u very much for your post. :) :) :)

gave a clear understanding of the situation. 

it's not taxable, refer dr rahul tugnait's case law of chandigarh 2009, everything will be crystal clear, d case law's related to medical profession but can be absolutely applied to ac profession.

read it once it will end d discussion here itself.

also d above case law is d most recent one among those discsd abov.