You cracked the competitive selection process, survived multiple rounds of technical interviews, and finally secured your position. Then your first stipend arrives—and it's much lower than expected. A solid chunk of your promised pay is missing, held back under the broad umbrella of TDS (Tax Deducted at Source) . For many students experiencing internship taxation for the first time, seeing a 10% deduction creates immediate friction. The confusion deepens when peers at different firms experience entirely different tax deductions for similar roles. This isn't a random corporate decision. It stems from how companies interpret your contract under the Income Tax Act, 1961 . To maximize your refund potential and protect your internship income , you must understand the interplay between Section 192, Section 194J, and Section 194C . ⚡ Quick Answer: Which TDS Section Applies to an Internship Stipend? Section 192 (Salary): Generally applies if ...
You land your dream internship, work grueling hours, and finally, payday arrives. But wait... why is your paycheck lower than promised? Welcome to the harsh reality of TDS (Tax Deducted at Source). Form 15G for interns is the most effective legal declaration students use to stop unnecessary TDS deduction on internship stipends when annual taxable income remains below exemption limits. 💡 Quick Takeaway If your estimated annual stipend income is below the tax exemption limit, you can submit Form 15G for interns to your HR department to stop the 10% TDS deduction completely and legally. Answer in one line: If your annual internship stipend is below taxable limits and your final tax liability is zero, submitting Form 15G helps stop TDS deduction legally. If you are a student or a fresh graduate earning a stipend, seeing a flat 10% sliced off your hard-earned money hurts. When you are just starting your career, every single ru...