SC refuses plea by nuns, priests against TDS deduction on their salaries

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Synopsis

"A salary grant is paid to these aided institutions, government will never pay a diocese..", the CJI said today

The Supreme Court of India has refused to entertain a plea by over 4000 nuns and priests challenging the deduction of TDS from their salaries received for the teaching services provided by them.

"Say if there is a Hindu priest who says I will not retain that salary..but tax has to be deducted...law is the same for everybody..", Chief Justice of India DY Chandrachud observed today while dismissing the petition filed by Institute of the Franciscan Missionaries of Mary.

Noting that these salaries are being paid by the government to aided institutions, Justice JB Pardiwala observed that this amounted to salary in the truest sense.

While dismissed the petition, CJI further told Senior Advocate Arvind Datar appearing for the petitioner that as the money was coming in the name of these priests and nuns, who don't use it, then they should not be given a salary.

On the court's advice that the nuns/priests could always claim a refund of TDS, court was told that they were not assessees.

Top Court was told today that the petitioners were protected by circulars issued from 1940s and the tax department initiated proceedings after someone wrote a letter to them in 2015.

Case Title: Institute of the Francsican Missionaries of Mary and others vs. Union of India