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.
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
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?
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