Stipend tax

Please follow the following link.

https://www.hindu.com/thehindu/biz/2001/11/22/stories/2001112200310202.htm

Income slab is for Individual Upto Rs. 2 Lakh is No tax for the AY 2013-14 (FY ended 31.03.2013)...

For your case, the FD interest is if exceeded the amount of Rs. 10K it will attract TDS for 10%. If your income is below the slab, then the TDS amount will get refund after filling your Income tax Return.

Stipend is there to cover the cost of study, books etc. and is not taxable. Interest income is taxable under other sources. In order to save the TDS you can fill the prescribed form with the bank. The salary from job will be taxable subject to limits. As per current limits, your amt of Rs 1.8 Lacs will not be taxable. Interest amt will be taxable subject to exemption limits. Instead of depositing money in FD you can opt for PPF A/c, where you can deposit in the range of 500 to 70000 (in multiples of Rs. 500) for a year. Also the return will be tax free.

Not taxable.

Ref the attach case.

Stipend is to cover the cost of the course, books etc and hence not taxable.

Yeah it is not taxable

Originally posted by : CA Amit Jaiswal
	Stipend is there to cover the cost of study, books etc. and is not taxable. Interest income is taxable under other sources. In order to save the TDS you can fill the prescribed form with the bank. The salary from job will be taxable subject to limits. As per current limits, your amt of Rs 1.8 Lacs will not be taxable. Interest amt will be taxable subject to exemption limits. Instead of depositing money in FD you can opt for PPF A/c, where you can deposit in the range of 500 to 70000 (in multiples of Rs. 500) for a year. Also the return will be tax free.

I totally agree but now u can deposit in PPF upto Rs.1 lakh.

yes the max limit  to deposit in PPF is 70000 but under 80C of IT act, the deduction is restricted upto 100000 p.a.

yes it is not taxable (Stipend). it is a gud suggestion to deposit in ppf but bank allow only upto Rs. 70000 but in income tax act it is allowed upto Rs. 1lac so u can deposit other Rs. 30000 in another bank.and on maturity is exempt.

when stipend is to meet cost of books and other study materials how it can be saved in cash ? if its saved in cash form then its not used for the purpose , for which it was paid, hence it would go to "income from other sources" and would be taxed accordingly.