Whether Stipend paid to Post Graduate(MD) trainee is taxable

[Dr Aveek Mukherjee]

Hi all!

I have just started training as an MD in IPGME&R and SSKM Hospital,Kolkata.

I will be paid a stipend of Rs 24741 in the 1st yr, abt Rs 25500 in the 2nd and abt Rs 28500 in the 3rd.

I wanted to know whether I'll have to pay income tax for the stipendiary income.

[Sunil Agarwal]

The stipend received by you is in the nature of scholarship. It is not in the nature of salary and acordingly not taxable. This is supported by the decision of ITAT, CHandigarh in case of Dr. Rahul Tugnait (2009) 315 ITR 139 (AT).

Sunil Agarwal

Dear Sir/Madam,

I finished my DNB (Equivalent of MD) training during which I was getting stipend and it was non-taxable for 3 years

I subsequently then joined as a consultant and worked for 3 years at NH Hospitals where I paid my taxes regularly

Now I have joined a one year fellowship program in New Delhi and my stipend is 97000/- per month (TDS at source not deducted unlike when i was working it was done at source). I have been told by half of the Chartered accountants I know that its taxable while the other half tell me its not. Some others tell me its terms of engagement!!! in this forum and elsewhere also they have referred to clause 10(16) of IT act and also a Karnataka High court judgement

Could someone guide me clearly:

1. Its a one year fellowship training program with a stipend of ₹ 97000 after my DNB training: I work as a resident/student now

is it taxable?

Warm Regards

Dr KRH

AI Summary

Stipend taxation: whether postgraduate stipends are treated as scholarship exempt from income tax or taxable.
The core issue is whether postgraduate and fellowship stipends are characterised as scholarship (non taxable) or as taxable remuneration. One view cites an ITAT precedent supporting non taxability for MD/DNB stipends; another reports mixed professional advice and references to an income tax exemption provision and a High Court judgment, noting uncertainties over withholding (TDS) and higher fellowship amounts.