The Supreme Court has ruled that income tax can be deducted from the salaries of priests and nuns

The Supreme Court has ruled that tax can be deducted from the salaries of priests and nuns working in government-aided educational institutions. The decision was taken by a three-judge bench headed by Chief Justice Sanjiv Khanna.

Observing that the law is the same for everyone, the court dismissed a review petition upholding the order upholding the levy of income tax (TDS) on the salaries of priests and nuns.

The Supreme Court's landmark judgment dismissed 93 appeals filed by priests and nuns of the Catholic Church against the levy of tax on the salaries of priests and nuns.

The petitioners, including the Institute of Franciscan Missionaries of Mary, had argued that the priests and nuns are those who have taken a vow to live in poverty and that their salaries are given to the diocese and convents.

Justice Chandrachud's ruling was considering other petitions, including one from the Madras High Court Division Kerala, that priests and nuns should pay tax on their salaries. The Supreme Court observed that the salaries are received by individuals. That money goes to their accounts.

The court clarified that it does not make sense to say that the church, the diocese or the diocese spends the money and that there is no mistake in charging tax on the amount received as salary. The order states that the law is equal for everyone and everyone who receives a salary is liable to pay tax.

The court pointed out that if an institution pays a salary to an individual, it is recorded as salary in the accounts and the salary paid to the individual is paid to someone else, it cannot be avoided from charging tax.