Which form to fill for TDS waiver in case of stipend...15 G?

Question

Hi...I am an intern in a company. My stipend is getting a tax deduction of 11.33% at source. I tried to submit form 15G but they say that it for receipt of interests only, not stipend. Which form should I submit, or what should I do so that my Tax is not deducted at source?

Answer 1

On the stipend or salary income, TDS is not deducted at a fixed rate. It is deducted only based on your yearly income. Read this and tell your company to read this:

http://mytaxes.in/index.php?topic=12.0

Also read TDS rate for salary http://mytaxes.in/index.php?topic=8.

In short TDS is not deducted if you annual income is going to be less than the amount not subject to income tax.