TDS on stipend

TDS 1608 views 7 replies

I am working in a IT concern. I am an academic trainee. TDS 11.33% is deducted from my stipend.

TDS is applicable for stipend also? How? How can i reduce the tax?

Replies (7)

Deductible. By availing various exemptions

Can you pl explain more?

Any other help pl?

Originally posted by :Ananth
" I am working in a IT concern. I am an academic trainee. TDS 11.33% is deducted from my stipend.
TDS is applicable for stipend also? How? How can i reduce the tax?
"

Even though you mighbe working as "academic trainee" and you are being given "stipend", - in the books, the company must have categorised you as "consultant / professional" (in plain language - a hired professional/outsider not in employment of the company). Any payment made to such persons, if it exceeds 20,000 in a aggregate in the year, the TDS is deducted u/s 194J @ 10% of payment + Education Cess @ 3% on TDS

Speak to the accounts head on what is the policy of the company in this matter

 

Thanks for your information.

How can i reduce the TDS percentage? it is so huge for me?  Is there any way to reimburse the tax amount?

Can u tell me the difference between Income Tax and TDS?

(Difference between Form 16 and Form 16A)

TDS is a tax which is deducted at source i.e. it is deducted from certain type of payments & u will get set off of TDS from your income tax payable.

With TDS system income tax dept. can collect the tax easily.

Form 16A is given for deducting TDS from any payment other than salary & Form 16 is given for deducting tax from salary.

u can get UR TDS back as a refund by filing ur incometax return.but i think if u file return once u hav to file it forever even if ur income is nil or loss 

Thanks,

Somebody says july is last to summit TDS.

Others says August is last to summit TDS.

Which is correct?

Pl let me know the detailed procedure to claim the TDS?


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