Hi, I would like to know whether we should deduct ESI, PF, and P.T from the stipend payable to a student who is attending project work in a company. If the stipend does attract these deductions, under which category can we pay the amount without any deductions? Please advise me.
Regards,
Vishwanath
From India, Hyderabad
Acknowledge(0)
Amend(0)
19Regards,
Vishwanath
From India, Hyderabad
Acknowledge(0)Amend(0)
Stipend Deductions for Students
Don't deduct ESIC, EPF, and P-Tax from their stipend amount as they are not applicable for this kind of student. ESIC, EPF, and P-Tax are deducted from wages/salary, but the stipend amount is never referred to as wage/salary.
From India, Kolkata
Acknowledge(0)Amend(0)
Don't deduct ESIC, EPF, and P-Tax from their stipend amount as they are not applicable for this kind of student. ESIC, EPF, and P-Tax are deducted from wages/salary, but the stipend amount is never referred to as wage/salary.
From India, Kolkata
Acknowledge(0)Amend(0)
According to my understanding, no, you cannot deduct ESI, PF, and PT from a stipend. Understanding Stipend and Deductions
"Stipend" would be considered a payment made to "trainees" and would be governed by the "Apprenticeship Act 1961." Please review this Act, which is available on the internet at various sources, including www.citehr.com.
"Stipend" is not "salary," and hence, I believe you cannot treat it the same way as you would "salaried employees."
Regards,
Ukmitra
From Saudi Arabia, Riyadh
Acknowledge(1)Amend(0)
"Stipend" would be considered a payment made to "trainees" and would be governed by the "Apprenticeship Act 1961." Please review this Act, which is available on the internet at various sources, including www.citehr.com.
"Stipend" is not "salary," and hence, I believe you cannot treat it the same way as you would "salaried employees."
Regards,
Ukmitra
From Saudi Arabia, Riyadh
Acknowledge(1)Amend(0)
Hi Divekar, I have gone through the link. Thank you. I came across a discussion regarding the deduction of P.T on a stipend. Can you please clarify this? Since a stipend is not considered a wage or salary, do we have to pay P.T on it?
Regards, Vishwanath
From India, Hyderabad
Acknowledge(0)Amend(0)
Regards, Vishwanath
From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc