what is the difference between consolidated pay and stipend ? What are the legal implications as far the employer is concerned?
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Facthr,
Consolidated pay is given to the only bonafide staff members and falling under Salary Income as per IT Act.
Against the Stipend is given to the Student only as VIDYA VETAN. The claimant should be bonafide student of any Educational Institute approved by the law. This Stipend is totally tax free. As activity of the student is education / research. What ever amount paid to him is mostly in lieu of out of pocket expenses or paid to him as gesture only.
Ramakant
From India, Pune
70Consolidated pay is given to the only bonafide staff members and falling under Salary Income as per IT Act.
Against the Stipend is given to the Student only as VIDYA VETAN. The claimant should be bonafide student of any Educational Institute approved by the law. This Stipend is totally tax free. As activity of the student is education / research. What ever amount paid to him is mostly in lieu of out of pocket expenses or paid to him as gesture only.
Ramakant
From India, Pune
Dear FactHR
Normally consolidated pay means, salary paid to persons on probation, contractual assignment etc., - but the payment will be considered for all statutory benefits, whereas stipend will be paid to Apprentices and Trainees - with restricted statutory benefits like ESI and no PF and Bonus.
Regards
N Nataraajhan, Sakthi Management Services (HP:+9194835 17402 ;e-mail:natraj@sakthimanagement.com)
From India, Bangalore
Normally consolidated pay means, salary paid to persons on probation, contractual assignment etc., - but the payment will be considered for all statutory benefits, whereas stipend will be paid to Apprentices and Trainees - with restricted statutory benefits like ESI and no PF and Bonus.
Regards
N Nataraajhan, Sakthi Management Services (HP:+9194835 17402 ;e-mail:natraj@sakthimanagement.com)
From India, Bangalore
Dear Nataraajhan ji,
You have correctly said that stipend is paid to Apprentices and Trainees.
Apprentices and Trainees are those who are engaged under the law or under Standing Orders.
However, if an amount is paid to confirmed employee, temporary, casuals, etc. what you will call it?
Dear Ramakant ji,
I would consider the word " bonafide employee" in place of "bonafide staff members".
Cosolidated pay is not difined any where, but the meaning of it, is total salary with no break up.
From India, Mumbai
You have correctly said that stipend is paid to Apprentices and Trainees.
Apprentices and Trainees are those who are engaged under the law or under Standing Orders.
However, if an amount is paid to confirmed employee, temporary, casuals, etc. what you will call it?
Dear Ramakant ji,
I would consider the word " bonafide employee" in place of "bonafide staff members".
Cosolidated pay is not difined any where, but the meaning of it, is total salary with no break up.
From India, Mumbai
Dear Ramakant ji,
My earlier post is spontaneous on reading the responses. Now the question arose in mind on what is bonafide staff or bonafide employee.
There is no such terminology viz. bonafide staff or bonafide employee. Whether the name of person is borne on the muster roll or not and you pay any amount to him with some description which contains service / labour charge, loading / unloading charges, maintenance and repairs etc. except professional fee paid against invoice, is treated in the head of salary by law.
From India, Mumbai
My earlier post is spontaneous on reading the responses. Now the question arose in mind on what is bonafide staff or bonafide employee.
There is no such terminology viz. bonafide staff or bonafide employee. Whether the name of person is borne on the muster roll or not and you pay any amount to him with some description which contains service / labour charge, loading / unloading charges, maintenance and repairs etc. except professional fee paid against invoice, is treated in the head of salary by law.
From India, Mumbai
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