deepak gupta (Student CA Final ) (189 Points)
09 July 2014I am doing audit of a company and they are deducting TDS under section 194J for payment made to interns (engineer), are they doing right? if not then what should i give reasons to support my answer...if there is any section/circular/notification then let me know.
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 09 July 2014
refer to clarification 7 of section 10(16). it is reproduced below:-
RESEARCH FELLOWSHIPS IN ENGINEERING, TECHNOLOGY, HUMANITIES AND SCIENCE SUBJECTS - The research fellowships in engineering technology, humanities and science subjects given by University Grants Commission will be exempt under section 10(16). The contingent grant of Rs. 1,000 per year to meet petty expenses will also be exempt under section 10(14) of the Income-tax Act, 1961.
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