TDS Deduction from stipend

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CA
29 Points Posted on 01 August 2007

Dear all

I am in to my 3rd year articleship. TDS has been deducted on my stipend. Stipend doesnt form a part of salary and is exempt from tax. There is no employer employee relation. I have comunicated to the firm  but the ans what i got is that its a firm policy. Is there any provision under which stipend is taxable. What should be my course of action? Please advice.

 

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On 01 August 2007 at 03:12 Report
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Chartered accountant
38 Points Posted on 01 August 2007
PLEASE CONFIRNM UNDER WHICH SEC, THEY ARE DEDUCTING TDS AND AT WHICH RATE. whether you are receiving stipned as per ICAI norm or else. make it clear for further observation. Is there is any seperate contract?
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On 01 August 2007 at 07:34
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CA
46 Points Posted on 01 August 2007
Dear Friend, First you have to confirm under which section they are deducting your TDS. If they are deducting under Salary head then as per my opinion they are right. As per my opinion arcticle/audit cleark is as good as employee. So if your stipend crosses the maximum limit then TDS will de deducted. But you can take exemption on those part of salary that is expended by you for conveyance purpose.
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On 01 August 2007 at 07:42
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Guest

Posted on 01 August 2007
TDS not to be deducted
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On 01 August 2007 at 12:09
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Guest

Posted on 02 August 2007
Make a complain in C.A.institution
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On 02 August 2007 at 01:16
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Guest

Posted on 04 August 2007
Hiii Stipend is exempt u/s 10(6). So TDS should not be deducted on it. Where as the Firms Policy cannot be contradictory to law. Case law: Sudhir Kumar Sharma vs ITO, Jaipur Bench.
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On 04 August 2007 at 04:23
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student
23 Points Posted on 10 October 2007
dear friends, i want to say that the article posted by amit chaudhary is wrong , might be my friend has quoted a wrong section by mistake. the stipends are not taxable u/s 10(16) only if it is granted to meet the cost of education, irrespective of the fact whether the amount is utilised for the same purpose or any saving done from the same amount. case law: CIT vs. V.K. Balachandran (1984) 147 ITR 4 (MAD) & Dr. V. Mahadev v. CIT(1990) 51 Taxman 411/184 ITR 533 (MAD) thanks. Prakhar
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On 10 October 2007 at 14:19
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75 Points Posted on 13 October 2007
hi! there is no liability of tds on stipend amt.kindly confirm them under which sec.they r deducting tds if its u/s 192B then this is treated as salary not stipend
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On 13 October 2007 at 15:46
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Article
37 Points Posted on 16 October 2007
hi! there is no liability of tds on stipend amt.if it has been deducted than plz ask the company under which section thy deducted.
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On 16 October 2007 at 17:01
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Program Manager
10026 Points Posted on 16 October 2007
No TDS is to be deducted, please get this reconfirmed
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On 16 October 2007 at 18:19
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Student
22 Points Posted on 18 October 2007
I agreed with Mr. Vijay, TDS should be deducted. As it is clearly mentioned in the definition of stipend that A stipend is a form of payment or salary, such as for an internship or apprenticeship. It means it can be treated as a salary and TDS on same should be deducted if it crosses the prescribed limit
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On 18 October 2007 at 12:34
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Guest

Posted on 28 December 2007
Mr. Vijay can you please tell us the maximum limit for TDS to be deducted from stipend
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On 28 December 2007 at 10:28
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Self employed
52 Points Posted on 28 December 2007
stipend is neither professional fees norcontract receipts, hence no liablity arise for tds
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On 28 December 2007 at 13:26
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Guest

Posted on 26 March 2008

How much should be the exact time to get well prepared for the pcc exam for both the groups

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On 26 March 2008 at 12:50
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Guest

Posted on 02 June 2008

hii i am working in an partnership firm in internal audit division but for last four years i am getting stipend now in this financial year  onwards company is telling they will deduct TDS ON STIPEND PLS GUIDE US what to do

what is Rate of TDS

 

FROM S

SUDHIR

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On 02 June 2008 at 11:21

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