Medical student overpaid taxes on non-taxable stipend: Can I get a refund?

Ans: Please wait it out a bit. The revised ITR also needs to be processed (hoping that you would've e-verified it too) and then only the balance of refund will come. If you don't get it in say 15-20 days, then head over to your IT website login and put the details in the Grievance tab.

Ans: You may file ITR-U & claim your TDS.

Ans: Whatever is reflected in 26AS, you can always pay as much tax as you want, without any problem.
Please check your revised ITR again & then proceed to pay tax. This would ensure correct picture.
Most welcome for any further clarifications. Thanks.

Ans: Filing an income tax return (ITR) is important. It helps you claim tax refunds and maintain financial records.

Your stipend is taxable if TDS is deducted. You should file an ITR to claim a refund if eligible.

Understanding Tax on Your Stipend
Your stipend is considered taxable income unless specifically exempted under law.

The hospital deducts TDS (Tax Deducted at Source) before paying you.

If your total annual income is below the basic exemption limit, you can claim a refund.

Steps to File Your ITR
1) Check Your Total Income
Your monthly stipend is Rs. 16,000.

Your annual stipend is Rs. 1,92,000 (Rs. 16,000 × 12).

The basic exemption limit is Rs. 2,50,000 for individuals below 60 years.

Since your total income is below this limit, you do not need to pay tax.

2) Collect Necessary Documents
Form 16 – If your hospital provided it, it will show TDS details.

Form 26AS – Download it from the income tax portal. It shows TDS deducted.

Bank Statements – These help verify stipend credits and other income sources.

3) File ITR Online
Visit the Income Tax e-filing portal (https://www.incometax.gov.in).

Choose ITR-1 (Sahaj) if your only income is stipend and bank interest.

Enter your income details from Form 16 and Form 26AS.

Claim a TDS refund if tax was deducted unnecessarily.

Verify the return using Aadhaar OTP or net banking.

Should You File an ITR?
You must file ITR if TDS is deducted and your income is below the taxable limit.

Filing ITR helps in getting a refund of excess tax deducted.

It also builds your financial history for future loans and credit approvals.

Final Insights
Your stipend is taxable unless exempted under law.

If TDS is deducted, file an ITR to claim a refund.

Keep financial records for future financial planning.

Regular tax filing helps in loan approvals, credit score, and investment planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment