Mastering Form 15G: How Indian students can save their internship stipend from TDS deductions. ⚠️ Disclaimer: Form 15G केवल तभी वैध है जब छात्र की कुल वार्षिक आय करयोग्य सीमा से कम हो। The 10% Heartbreak: Where Did Your First Stipend Go? You worked hard for a month. Your offer letter promised ₹15,000 . You eagerly check your bank account, and you only received ₹13,500 . You just became a victim of TDS (Tax Deducted at Source) . But as a student, do you really have to pay this? Absolutely not. The Truth About Stipend Taxability in India Whether you are doing a high-end corporate gig, running content networks like the Sahityashala Network , or getting paid to write technical analysis for Sahityashala Sports , companies will often treat your internship stipend as a "professional fee." Under Section 194J of the Income Tax Act, companies are mandated to deduct a 10% TDS on professional and technical services. However, if your total ...
⚠️ Disclaimer: Form 15G केवल तभी वैध है जब छात्र की कुल वार्षिक आय करयोग्य सीमा से कम हो।
The 10% Heartbreak: Where Did Your First Stipend Go?
You worked hard for a month. Your offer letter promised ₹15,000. You eagerly check your bank account, and you only received ₹13,500. You just became a victim of TDS (Tax Deducted at Source). But as a student, do you really have to pay this? Absolutely not.
The Truth About Stipend Taxability in India
Whether you are doing a high-end corporate gig, running content networks like the Sahityashala Network, or getting paid to write technical analysis for Sahityashala Sports, companies will often treat your internship stipend as a "professional fee."
Under Section 194J of the Income Tax Act, companies are mandated to deduct a 10% TDS on professional and technical services. However, if your total annual income falls below the basic exemption limit of ₹3 Lakhs (under the New Tax Regime), you owe zero tax to the government.
Enter Form 15G: The Ultimate Shield 🛡️
Form 15G is a self-declaration form you submit to your employer. It essentially tells them: "My total income for this financial year will not cross the taxable threshold, so please DO NOT deduct any TDS from my stipend."
Are You Eligible to Submit Form 15G?
Before you rush to HR, ensure you meet these three golden criteria:
- ✅ Age Limit: You must be an individual below 60 years of age.
- ✅ Residency: You must be a Resident Indian (NRIs cannot use Form 15G).
- ✅ Income Limit: Your total estimated income for the financial year must be less than the basic exemption limit (₹3,000,000 under the New Tax Regime).
What if You Have Multiple Income Streams?
Many students today don't just rely on internships. Suppose you are also earning AdSense revenue from your blog or getting paid for brand deals on Instagram. Can you still submit Form 15G?
Yes, provided your combined income from all sources is below the ₹3 Lakh limit. If you are confused about how your social media income is calculated for this threshold, you must read our comprehensive breakdown: Is Income from YouTube Shorts & Instagram Reels Taxable for Students in India?
What if the Company Already Deducted TDS?
Sometimes, HR policies are rigid, or you simply didn't know about Form 15G in time. Don't panic; your money isn't gone forever. It is safely sitting with the Income Tax Department. You simply need to file an Income Tax Return (ITR) at the end of the year to claim a full refund directly to your bank account.
Managing Your Full Stipend (Like a Pro)
Now that you've successfully used Form 15G to secure your entire stipend, what next? Burning it on weekend parties is easy, but building a financial foundation early gives you immense leverage.
- Budget Smartly: Even as a student living in cities like Delhi or Lucknow, small changes can yield massive savings. Check out our proven lifestyle changes to save ₹10,000 easily.
- Start Investing at 18: Instead of letting your money lose value to inflation in a savings account, consider exploring long-term retirement and investment vehicles. Read our highly acclaimed Beginner's Guide to the National Pension System (NPS) to get started.
Conclusion: Be Your Own Financial Advocate
Navigating the corporate world as an intern is daunting enough without letting the taxman unknowingly slice your hard-earned stipend. Form 15G is your legal right as a student earning below the taxable limit. Always ask your HR department about their TDS policy before onboarding. Stay informed, file your zero ITRs, keep learning on the Sahityashala Network, and watch your financial literacy compound alongside your wealth!
Comprehensive FAQs on Form 15G & Internships
1. Is an internship stipend considered a salary?
Usually, no. Unless you have a formal employer-employee contract, an internship stipend is treated as "Income from Other Sources" or a professional fee (Section 194J). If it's a pure educational scholarship to meet the cost of education, it is fully exempt under Section 10(16).
2. When is the right time to submit Form 15G to my company?
You should ideally submit Form 15G at the very beginning of your internship or at the start of the financial year (April) before the first payout is processed. If you submit it late, the TDS already deducted cannot be refunded by the company; you will have to claim it from the IT department via an ITR.
3. Can I submit Form 15G online?
Yes! Most modern companies and HR portals allow you to digitally fill out and submit Form 15G. If not, you can download it from the Income Tax website, fill it physically, and submit it to your HR or finance department.
4. What happens if I falsely submit Form 15G when my income is above ₹3 Lakhs?
Submitting a false declaration under Form 15G is a serious offense under Section 277 of the Income Tax Act. It can attract severe penalties and, in extreme cases, rigorous imprisonment. Always calculate your estimated annual income accurately.
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