Question 1

Is internship stipend taxable in India?

Accepted Answer

Stipend is generally treated as 'Income from Other Sources' (or salary, depending on the employer-intern relationship). It becomes taxable once your total annual income — including the stipend — crosses the basic exemption limit (₹4,00,000 in the new regime after rebate, effectively nil tax up to ₹12,00,000 total taxable income). Most students earning stipends for a few months a year end up owing no tax.

Question 2

Why did my company deduct TDS from my stipend?

Accepted Answer

If a company treats your internship as a professional/consulting engagement rather than employment, it may deduct 10% TDS under Section 194J once your total payment from them crosses ₹30,000 in a financial year. You can claim this back as a refund when filing your income tax return if your total income is below the taxable threshold.

Question 3

What is a good stipend for an internship in India?

Accepted Answer

It varies hugely by role, company and city. As a rough guide: ₹5,000-15,000/month is common for smaller companies or early-year students, ₹15,000-30,000/month is a solid average, and ₹50,000+/month is typical for top-tier tech companies and pre-placement offer (PPO) internships.

Question 4

How is the effective hourly rate calculated?

Accepted Answer

We divide your monthly stipend by the average number of hours you work in a month (hours/week × 4.33 weeks). This helps you compare stipends across internships with different working hours.

Question 5

Should I choose a higher stipend or a PPO opportunity?

Accepted Answer

If the roles are otherwise similar, a strong Pre-Placement Offer (PPO) track record often matters more long-term than a slightly higher stipend, since it can lead directly to a full-time offer. Weigh the learning, mentorship, and conversion rate alongside the pay.

What's Your Stipend Really Worth?

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