How to use the Internship Stipend Tax Calculator
- 1. Enter your stipendMonthly stipend, months paid in this financial year and any other income.
- 2. Check the rulesChoose salary or fee, then check the standard deduction, slabs, rebate and cess for your year.
- 3. See your taxGet the yearly tax, a step-by-step breakdown and any refund or balance after TDS.
How the tax is estimated
Tax depends on the income tax regime and the slabs for the year, so all of them are editable here. The steps are:
- Total income = stipend × months + other income.
- If the stipend is paid as salary, subtract the standard deduction.
- Apply the slab rates to the taxable income.
- If taxable income is within the rebate limit, subtract the rebate (up to its maximum). Just above the limit, marginal relief caps the tax at the income above the limit.
- Add cess on the tax.
The slabs, rebate and deduction are prefilled with the new-regime values used in this site's old vs new tax regime calculator. Check the current official rules for your year.
Worked examples
A stipend of ₹25,000 for 6 months is ₹1,50,000. As salary, less ₹75,000 standard deduction, taxable income is ₹75,000. That is inside the 0% slab, so the tax is ₹0.
Now take ₹1,20,000 a month for 12 months: ₹14,40,000, less ₹75,000 = ₹13,65,000. Slab tax: 5% of ₹4,00,000 = ₹20,000, 10% of ₹4,00,000 = ₹40,000 and 15% of ₹1,65,000 = ₹24,750, a total of ₹84,750. The income is above the rebate limit and marginal relief does not apply (₹84,750 is less than the ₹1,65,000 above the limit). Cess at 4% adds ₹3,390, so the tax is about ₹88,140.
Things to check
- Salary or fee: whether a stipend is salary or other income depends on the internship terms. Your offer letter or payslip helps.
- TDS: if tax was deducted but your final tax is lower, you can claim a refund when you file your return.
- Scholarships: some stipends given as a scholarship to meet the cost of education may be exempt.
This is an estimate, not tax advice. Ask a tax professional if you are unsure. To see what the stipend leaves after costs, try the internship stipend calculator.
Frequently asked questions
Is an internship stipend taxable?
It can be, as salary or as other income, depending on the terms. Whether you pay tax depends on your total income for the year and the current slabs and rebate.
Why are the slabs editable?
Slabs, rebates and deductions can change in each budget and differ between regimes. Edit them to match the rules for your year.
My company deducted TDS. Will I get it back?
If your final tax for the year is lower than the TDS, you can claim the difference as a refund by filing your income tax return.
Is it free?
Yes. You enter your name and WhatsApp number once to see the result, and other Uncodemy tools then open without the form.