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stipend received by post graduate student feom medical college

27 March 2019

hello
i am a post graduate student in a government medical College and receiving stipend monthly after deduction of TDS. so i am asking that is the stipend exempt from tax u/s 10(16) or taxable.

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3 Replies

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 27 March 2019

If the stipend is paid to further your education, then it shall be treated in nature of scholarship and shall be exempt.
However if you are receiving same for a higher degree and you are performing over there as an employee, then such stipend shall be taxable

yogendra dhaka (18 Points)
Replied 29 March 2019

I don't know in which capacity i am working.i am totally confused because someone is claiming exemption and someone paying tax.in your opinion what i do?