Help On Stipend - Jpg Download

I am a New Hire receiving a stipend. But i am being told that i wont get any HRA, travelling allowance or any such exemptions on my stipend. Please let me know is if a stipend can be divided into HRA, travelling allowance or any other exemptions.

Stipend is not a salary. HRA and allowances are given on salary. Mostly org. do not divided stipend. If we divide stipend then what will be the diff. between stipend and salary.

I am paying income tax & PF on my stipend. If Stipend cannot be considered as salary, why is it taxed as salary?

dear
if stipend is 50 k per month.than why tax will not be deducted.tax have concern with your yearly income.there should not be any deduction of PF on stipend.
i feel which you are getting is manipulated stipend.
regards
j s malik

Generally stipend is paid to short term trainees who are not employees (mostly summers or winter trainees). Employees on rolls (including trainees) get salaries with well defined components. Are you an employee on rolls or on 3rd party rolls?

Dear Krutiks,
A Stipend is a form of monetary payment for an internship or apprenticeship. Stipend does not have any bifurcations and is a lumpsum payment. It may come to you with additional benefits the organisation may provide like food, accommodation, travel etc. However the HR may not entertain your request of bifurcating it into components as paid to permanent full-time employees.
And you mentioned you are on probation. So, I presume post that you will be confirmed (depending on yuor performance) and then you will have a salary structure just like other employees.
Regards

Stipend is all about maintaining your day to day need. It is not salary. Mostly stipend is too low to be taxed.

Dear Krutiks,
Stipend is a consolidated amount which is paid for the time and effort that you put for the company during training. You are not productive for them at this stage as and they would be paying you like other employees once you will start working for them and become productive.
PT and IT can be deducted as income is more concerned with your yearly income and not the mode of income. I suppose PF is deducted because as you told that you are a direct hire but currently on probation might be they would interested in retaining you.

No!!!!!! this cant be done. Stipend is basically given to the new joinee (with a concept to compensate him for travelling allowance & meals, or whatever you say) to sustain him/her on the job, as during this period he gets the training and not completely imparts the professional services, once this period is over, after the assessment, then as per mgmt discretion he comes on the rolls, thereafter the HRA, convenyance allowas, LTA etc start.

Hello
On this issue, we have consulted a EPF consultant who is working in PF Dept. As per him, PF is applicable to those employees, if any employee will work for one day. But earlier we have consulted a Tax Consultant, and as per him, if a employee is on training period and company is paying him stipend, EPF and PT is not applicable to them? So it is bit confusing.
Regards,
Suvarna Paranjpe
Pune