TDS on stipend

sec 192 only... well if you get stipend over 160000 in a year..

since there is no specific or general section for TDS on stipend ,TDS ned not be done......

stipend is not given for services rendered but for support of student for his education during his training or higher studies hence it canot be called as salary nor a contractual service.....

Dear Pradeep,

Agree with Ramya, Stipened caanot be called as salary since there is no employer-employee relationship.........

Dear Amir,

Then it will be a loop hole,

I mean that u can have a professional n pay them stipend by which u r not liable to deduct TDS.

Is there any defination of stipend given in ACt??

Originally posted by : ramya kinthali
	since there is no specific or general section for TDS on stipend ,TDS ned not be done...... stipend is not given for services rendered but for support of student for his education during his training or higher studies hence it canot be called as salary nor a contractual service.....

I agree with Ramya there is a case law in this regard which says stipend is not taxable.

Regards

Prasad R

Dear Poornima,

The word "stipend" is not used in Income tax, so the question of definittion doesnot arise.......

But in other statues like PF ,etc u can easily find difference betwwen

1) Employee & Apprentice

2) Salary & Stipend

I agree with prasad

i agree with amir..........

Ideally TDS should not be deducted on stipend.. Some firms are deducting it for playing safe. However, if it is deducted, u may file for a refund claim...

Amir bhai is rite..........

There is no employer - employee relationship.........

Please see this case law attached........from caclubindia......

Source : caclubindia..

There are two things to be considered.

1. Contract of service

2. Contract for service

Articleship is covered under Contract of service and there comes employer-employee relationship. Hence stipend received is taxable if it exceeds Rs.1,60,000.

I think, a mistake which all is making here is mentioning that TDS could be deducted if it exceeds 1,60,000.00.

First thing, TDS should not be deducted at all on stipend. If it is deducted, thenwhy on 1,60,000 ????? It should be deducted when it exceeds Rs. 20,000.00. Secondly, rs. 1,60,000.00 is not the slab income wise it is assesseewise. So, even if your stipend is Rs. 12000.00 p.a., and your taxable income exceeds the prescribed slab, it will bw taxable, but only, if stipend is taxable.

If a firm is deducting your TDS then simply give them Form-H. That would work.

Thanks.

I find this thread very information

V

Thanks.

I find this thread very information

V