Medical students finally get stipend, but lose 10% to I-T

Four days after HT had reported that medical students in the civic-run hospitals had not received their stipend for almost three months, the Brihanmumbai Municipal Corporation on Sunday finally disbursed their remuneration.

However, 10% of the total remuneration received by the students has been deducted under income tax (I-T) owing to the new vendor registration policy. As per the new rule, medical students, including interns, resident doctors and senior medical officers, are considered vendors, undergo vendor registration and are therefore, are liable for 10% tax deduction. The taxation policy has only been introduced for medical students working at BMC hospitals and not other government hospitals. Students from King Edward Memorial (KEM), BYL Nair and Topiwala General Municipal hospitals have also written to BMC over the issue and have raised concerns about the deduction of money without a prior intimation.

Dr Ramesh Bharmal, BMC’S director of medical education, justified the tax deductions. “These doctors are being paid by BMC and so they will have to pay taxes like other Indians. They may be students but they are also taking money from the corporation, making them employees,” he said.

Doctors, however, said that medical students cannot be made to pay taxes as they are still pursuing their studies and paying fees to the Brihanmumbai Municipal Corporation (BMC).

“In other states, students are given additional allowances for working on Covid duty. Senior doctors who just come on rounds are getting Covid allowances. But here, money is being deducted from our stipend,” said a resident doctor from Nair Hospital.

Medical students on graduating are stationed at civic hospitals as interns, and paid ₹6,000 in BMC medical colleges. During their post-graduation, students are paid ₹54,000 per month, post which during their bond posting, they get a monthly stipend of ₹82,000.

“We pay our fees to the medical institutions as students. In fact, the services that we provide to patients in hospitals fall are being practiced as a part of our curriculum. We are assigned marks for it. We are not registered BMC employees to be qualified for taxes. If the government wants to take taxes, they shouldn’t ask us to pay fees,” said another student from KEM Hospital.

Students also alleged that the step is extremely discouraging for those who are working round the clock to treat Covid patients at a time when their exams have also been delayed. Most final-year students fear that their plans for further studies will be affected owing to the delay in the exams due to the coronavirus outbreak.

“When the outbreak started, our colleges suspended classes and assigned us on Covid duties. Many doctors are as young as 18 years and directly face the threat of virus. Shouldn’t the authorities appreciate us instead of treating us mere vendors?” said a student who has been stationed at Sion Hospital’s Covid ward.