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TDS on Sudent Performance Rewards

Tushar Jambhekar (Service) (26 Points)

02 March 2009

Is TDS applicale on Rewards from an Educational Institution on account of academic performance?

What is the limit beyond which TDS is applicable?

Please help!

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3 Replies

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consult) (403 Points)
Replied 02 March 2009

There is no provision of TDS on awards given by the educational institutions

Tushar Jambhekar (Service) (26 Points)
Replied 02 March 2009

Thank you for your response.

My institute is demanding me to pay TDS on a reward of Rs 6000 for academic performance. The claim stands on the fact that a deduction was not made on account of an error making the student liable to refund the TDS amount to the institute. It wants the students to declare it as income and claim an IT rebate on the same.

I wished to know how far this is justified.