Stipend of resident doctor doing pg

Tax (Student) (165 Points)

30 January 2017  

Assessee is a resident doctor at Indira Gandhi Government Medical College, Nagpur.. 

He is also pursuing PG.. 

He gets stipend which is said to be entirely tax free and exempt income.. 

Is this correct explanation by the admin staff? 

And which ITR to file in such case? ITR 1 or 2?