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I have entered my job on aug. Till December i have not paid any GPF/GIS or in any other liable for tax deduction. so my quarterly income (sept-dec) is above tax limit. shud i pay tax for that or is it enough that i adjust the amount by putting more in GPF in coming months or by putting the extra taxable money in deposits with tax benefit.i hav also got rs15000/month as stipend from mar08 to aug 08. Will that also come under tax income? please help.
your tax liability is arrived on 31-3-09 only based on income earned for 08-09. You can accordingly invest in any tax saving schemes/GPF. So relax and plan
Taxation of Stipend Income has been a matter of much debate. In the Income Tax Act from a purely factual standpoint there is no mention of ‘stipend’.
‘Salary’ received by an ‘employee’ is taxable in the hands of the employee. Under Section 17(1) – Wages, pension, gratuity, fees or commission or profits in lieu of salary, advance salary, payment for leaves standing to the credit of the employee – have all been included under the definition of salary. It is evident when a salary is paid – an employer-employee relationship exists.
TDS on Stipend – Some companies may not deduct tax on Stipend; it may still be taxable in your hands, depending upon the nature of the terms or such payment.
Taxed under which head – If your payer has already deducted tax and issued you a form 16 this shall be taxed under the head Salaries otherwise this is usually taxed under the head Income from Other Sources.
No Expenses are allowed to be deducted from Stipend – Do note that if you are earning a Stipend which is taxable, no deduction is allowed for any expenses that you have incurred to earn the stipend. You can save tax in the form of section 80 deductions
Should you file an Income Tax Return – If your total income from all sources is more than the minimum income which is exempt (Rs 2,50,000 for FY 2018-19).

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