Stipend paid to medical student pursuing pg

This discussion explores the taxability of stipends paid to medical students pursuing postgraduate studies. While some argue stipends are scholarships exempt under Section 10(16) of the Income Tax Act, citing High Court judgments, others contend they are taxable income, akin to salary, due to components like grade pay and yearly increments. The deduction of TDS by institutions further complicates the matter, with advice to claim refunds by filing returns if considered exempt.