Credit portal





how much tax should be deducted

Should TDS be deducted on Stipend

by Venkatesh on 19 February 2011

Should the TDS be deducted for Stipend paid for the interns who are for a duration of 6 months on temporary basis, amount paid 15000 per month?

by Member (Account Deleted) on 20 February 2011

No TDs is required.

by Venkatesh on 21 February 2011

What if the amount paid exceeds 1.6 lakh per annum and should we deduct the Professional Tax also?

by UMA SHANKER SHARDA on 21 February 2011

If payment exceeds Rs.1.60 Lac, and savings U/s80 c are not, than TDS is to be deducted and Prof. Tax is to be deducted as per state govt. provisions of your state.

by Member (Account Deleted) on 22 February 2011

In my opinion, stipend is not the salary as it is given to trainees and not the employees. Relation between a emploer and trainer is not the relationship of employer and employee. However, to avoid the any probable controversy, tax can be deducted treating it as


by CA. Lohith Jagadeesh on 24 February 2011

Hi, In My opinion Stipend is chargeble under the Income From Other Sources as it cannot be chargeble under any other head of Income. If Income Exceeds 1.6 Lacs and no deductions under Sec 80 C, then TDS needs to be deducted. Thank you, Regards CA.Lohith.J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

by CS ,CMA Shambhu Kr. jha on 26 February 2011

As far i think Apprenticeship Trainee are not treated as employee nor it will treated as management and consultancy services so i think no TDS should be deducted from the payment made to Apprenticeship Trainee. Further more payment and any deduction therefrom to any apprenticeship Trainee should be as per the apprenticeship Agreement signed by them. If there is not mention any thing about TDS than in no case TDS should be Deducted. Although all of your's advice are recommended Thanks & Regard

You need to be the querist or approved CAclub expert to take part in this query .

Category: Taxes

Similar articles: