Stipend Income-Taxability

[PANKAJ GROVER]

Stipend received by a doctor from a hospital of Rs 60000/- per month. The hospital has not deducted any TDS on the stipend paid of Rs 7,20,000/- for FY 2010-11. Whether the stipend taxable, under which head. And if Exempted then under which section.

With Warm Regards

RAPG & Co.

Chartered Accountants

[CAGOPALJI AGRAWAL]

It would be taxable. The head would be in accordance with the terms of engagement.

[malhar shenoy]

Stipend received by a doctor will be taxable as Salary or as Professionals.and TDS needs to be deducted.

However if the stipend is given for pursuing the further  studies , as paid for residend doctors doing post graduation , MD, MS etc one can treat it as scholorship grants for meeting cost of educations.Section 10(16).

case can be relied on Sudhirkumar Vs ITO, where in stipend to CA student was held exempt.

AI Summary

Doctor's Stipend Taxability Debated: Salary, Professional Income, or Exempt Scholarship Under Section 10(16)? A doctor received a monthly stipend of Rs 60,000 from a hospital, totaling Rs 7,20,000 for the fiscal year 2010-11, without any tax deducted at source (TDS). The discussion revolves around whether this stipend is taxable and under which category. One response suggests it is taxable based on the terms of engagement, while another indicates it could be taxed as salary or professional income. However, if the stipend is for further studies, it might be exempt under Section 10(16) as a scholarship, similar to a precedent involving a CA student.