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Stipend received by a PG student is no more taxable.

Stipend, awards, fellowships, and grants for education have been held as scholarships, exempt from Income Tax.  

This is applicable for MD/ MS/DNB super speciality, and also during serving the bond period after MBBS and post graduation, under section 10 (16) of the Income Tax Act. Any scholarship granted to a person to meet the cost of education is exempt from tax.

The Karnataka High Court had occasion to consider whether the trainees stipend granted to a physician to further his education and training was exempt under section 10 (16). The Income-Tax department took the view that the amount received by the taxpayer was not in the nature of scholarship, but it was salary for the services rendered. The High Court held that the amount paid to the taxpayer was for the benefit of securing training and pursuing study and research in medicine and the entire amount received from the hospital was in the nature of scholarship and not for services rendered and services if any rendered by the taxpayer where only incidental to the course of practical training.


Comments

  1. Unknown14 September 2020 at 19:20

    Thanks for the updated information. It will be very useful.

    ReplyDelete
  2. Accufile 20 April 2021 at 12:24

    A very delightful article that you have shared here. Your blog is a valuable and engaging article for us, and also I will share it with my companions who need this info. Thankful to you for sharing an article like this.File Taxes Online Canada

    ReplyDelete
  3. Rum Tan24 September 2021 at 18:51

    Whoa! I didn't know that a stipend received by a PG student is no more taxable. Your blog reminds me of when I had Singapore’s edusave scholarships and awards. It was available for students at all educational levels. Well, there are 9 nine types of edusave scholarship awards ESIS, E(IS)YA, ESIP, and many more. To know more about scholarships contact online education websites and applications. Thanks for sharing!

    ReplyDelete
  4. tutorssa4 March 2022 at 11:50

    This information is so useful and informative which you have shared here. It is beneficial for beginners to develop their knowledge. It is very gainful information. Thanks for sharing ACER Scholarship Test.

    ReplyDelete
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  6. Anonymous22 December 2022 at 12:44

    Sir i m PG medical student..but my college is deducting tds under the head salary from my stipend..still my stipend will be exempt?

    ReplyDelete

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