Is the Inspire Fellowship from DST Taxable or Not?

The Inspire Fellowship provided by the Department of Science and Technology (DST) in India is typically considered a scholarship. As per Indian tax laws, scholarships and fellowships awarded to students for education are usually exempt from income tax. However, it is important to note that any additional income or allowances associated with the fellowship may be taxable. Therefore, it is advisable to consult with a tax professional or refer to the latest guidelines from the Income Tax Department for the most accurate and personalized advice.

eligibility and nature of the fellowship

The Inspire Fellowship, received from the Department of Science and Technology, Government of India, is nature of scholarship aimed at covering the cost of pursuing higher education or research. The fellowship includes all other expenses which are incidental to acquiring your education or carrying out research. Hence, it is exempt under Section 1016 of the Income Tax Act 1961.

taxation of scholarships and fellowships

Any income earned or received, regardless of the nomenclature given, may be subject to tax. The scholarship received for higher education is subject to tax under the Head 'Income From Other Sources'.

However, the tax liability arises if the total income under all five heads of income exceeds the threshold limit fixed for each tax year. The finance bill budget announced every year determines the threshold limits. For the FY 2020 - 21, the threshold limit is 5 lakhs (Rs. 5,000,000).

Therefore, if your total income from all five heads of income, including your scholarship, is below this threshold limit, you do not need to worry about the tax liability. Always check the latest tax laws and guidelines to ensure compliance with the current regulations.

the final word

The Inspire Fellowship from the DST in India is generally exempt from income tax under Indian tax laws. However, additional allowances or income associated with the fellowship may be taxable. It is essential to understand the specific tax implications and to seek professional advice to ensure accurate tax compliance.

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