Questions Taxation of stipend income

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Moulik Reddy

Category : Taxation..,

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November 10, 2018 2:34 am

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Taxation of Research Fellowship

Hello Amlan,
Firstly thanks for sharing knowledge on this platform as well you-tube.

Q.1 My brother doing PhD & he earns stipend Rs 4,00,000 per yearly.
(a). Is this stipend is taxable or not ??
(b). If so, which ITR should he file ? ITR -2 ??
(c). where he need to enter t...

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Amlan Dutta

This is one of the disputed areas of tax ...The act under 10(16) specifies very clearly that only scholarship granted to meet the cost of education’ is exempt from Income Tax under the section 10(16). ....now whether the Research(PHd) stipend( fellowship falls under the definition of scholarship
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November 10, 2018

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Moulik Reddy

Thanks for the edited reply. As per your Footnote he comes under [9]....As he comes under exempted income. (a). Then submitting ITR is voluntary right?? (b). Then if he wish to declare his income Can he directly submit ITR-1 NOW for AY 2017-18 & AY 2018-19 ?? any penalty for late submit (c). In this...

November 10, 2018

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Amlan Dutta

November 10, 2018

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Amlan Dutta

1.) Tax filing for individuals is voluntary for any years when the gross total income i.e income without giving rise to deductions ) is below threshold levels but note individual wont be able to claim any TDS refund if he doesn't file return so even in cases when individual gross income is below threshold level. if TDS has been deducted , then individual won't be able to seek refund until he files a return for claiming refund of deducted TDS.

2.) For AY 2017 18, he cannot file return since belated period is over( there is a separate way to do so which is much tedious and requires first condonation by CIT u/s 119(2(b) ...check y tutorial for the process ...For AY 2018 19 , he can file belated return using 139(4) but late fee under 234F shall apply ( since total income is below 5 lakhs , it is 1000rs and cant be waived off )......so, in this case , it wont be a refund case actually since the late fee fine 1000 exceeds the refund of 956 rs

Note, that if any extra tax liability arises, it must first be paid in form of self assessment tax and tax liability made nil before filling tax return.
c.Yes, i have already mentioned same and don't like repeating my answers ....

*****Footnote :The quantum of fees that can be levied u/s 234F is as under :

If the return is furnished after 31st July but on or before the 31st day of December of the assessment year – Rs. 5000 (i.e 31st July 2018 and 31st Dec 2018 for FY 2017-18)
If the return is furnished after 31st December of the assessment year – Rs. 10,000
However, if the Total income i.e. Income after deduction is less than or equal to five lakh rupees, then, in that case, the late fee amount shall not exceed Rs. 1000......i won't be replying to this query any further

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November 10, 2018

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