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

AI Summary

Stipend taxability: stipends are generally taxable as salary or professional income, with scholarship exemption possible.
Stipend payments to doctors are generally taxable and are to be classified as salary or professional income according to the terms of engagement, with corresponding withholding obligations. If the stipend is objectively a scholarship or educational grant to meet costs of further study (for example for resident post graduate training), it may qualify for the statutory scholarship exemption, subject to factual characterisation and supporting evidence.