A stipend is a fixed periodic payment to a student as a scholarship or a fellowship allowance. The question of whether Provident Fund (PF) applies to such Stipend payment or not is one of the legitimacy of the payee being a registered student, a letter from the educational institution that the Internship is an integral part or extension of the academic curriculum. Further, the student should not be bound by typical employment terms and conditions viz. duties and responsibilities, reporting relationship, leave rules, uniform, disciplinary procedures, etc.
Where the genuineness of being a registered student and pursuing an extension of an academic curriculum, then PF would not apply. However, where the stipend is paid to any person where there is inadequate evidence of being a legitimate student, then PF would apply.
To See PF Notification dated October 12th, 2015 Click here