That ₹15,000 internship stipend feels like pocket money until TDS shows up on your payslip. Stipends are usually taxable as income — the only question is whether any tax is actually due after rebates.
- Stipend is generally taxable under “Income from Other Sources” — not salary unless you are on payroll as an employee.
- Companies may deduct 10% TDS under Section 194J if the stipend exceeds ₹30,000 in a year.
- For FY 2025-26, the Section 87A rebate can make tax zero up to ₹12 lakh taxable income in the new regime.
If TDS was cut but your total income is below the taxable threshold, file ITR to claim a refund. Do not ignore Form 16A from the company.
The takeaway
Stipend ≠ salary for PF. Budget on what lands in your bank after TDS, not the gross number HR quotes.