Indian Tax Solution

No exemption on stipend

Q. My daughter is doing postgraduate course and getting stipend. Please clarify on the following points:

1. Whether the stipend is required to be included in the income or not? If yes, in which column it should be shown - in salary income or income from other sources.

2. If included in the income, under which section deduction is permissible.

- Subhash Chander

A. Stipend received by a postgraduate student is not tax-free and therefore it is not possible to claim any exemption in respect thereof.

Q. I am a government employee and my employer is deducting Rs 50,000 towards NPS out of my salary. I am also depositing Rs 1,50,000 towards PPF every year. Please advise whether I am eligible for deductions of Rs 1,50,000 under Section 80C and Rs 50,000 under Section 80ccd(IB) or of Rs 1,50,000 under Section 80C only.

- Ramesh Kaith

A. You are entitled to deduction of Rs 1,50,000 under Section 80C of the Act as well as an additional deduction of Rs 50,000 deposited towards NPS under Section 80CCD(1B) of the Act.

Q. My wife is earning interest in FD in her name. However, interest so earned is deposited into our joint savings account, in which I am the first holder.

My query is whether interest so earned will form part of my or wife's income. We file separate ITRs.

- Mukhtiar Singh

A. Interest earned by your wife in respect of her deposit shall form part of her income in case this represents her income although it is being deposited in the joint account in which you are the first holder.

Q. I am president of the Chandigarh chapter of Indian Dietetic Association, a registered body with its HO at Kolkata. The HO has a PAN and also registered for GST at Kolkata. There are 23 chapters of this Association from different states.

My query is whether we as a chapter are liable to register for a separate GST, even if our annual income from membership fee or other activities like seminars etc does not exceed Rs 20 lakh per annum. We charge a one-time fee of Rs 3,000 from every new member registered as a life member and give a receipt. Out of the total membership fee collected annually, we contribute 50% of that fee to the HO. We have been advised by our parent body at Kolkata to register for GST at Chandigarh, w.e.f April 2018.

Kindly advise whether it is mandatory for individual chapters to register even with income far below Rs 20 lakh.

- Madhu Sharma

A. As per the provisions contained in Section 22(1) of the CGST Act, every supplier shall be liable to register under GST in the state or UT from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs 20 lakh.

Aggregate turnover has been defined in Section 2(6) of the CGST Act. As per the said section, "aggregate turnover" means the aggregate value of the taxable supplies (excluding the value of inward supply in which tax is payable by a person on reverse charge basis), exempt supplies, export of goods or service or both and inter-state supply of a person having the same Permanent Account Number, to be computed on all India basis but excludes central tax, state tax, union territory tax, integrated tax and cess. In accordance with the aforesaid legal requirement, Chandigarh chapter needs to be registered under GST Law if aggregate turnover of the Indian Dietetic Association on the same PAN in a financial year exceeds Rs 20 lakh.

 

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