Supreme Court dismisses pleas to exempt salaried nuns from paying income tax

Supreme Court dismisses petitions seeking tax exemption for nuns, ruling all salaried individuals must pay income tax.

The Supreme Court on Thursday (November 7, 2024) dismissed 93 petitions from various missionaries to exempt salaried nuns from paying income tax.

The missionaries had argued that nuns and priests enter a State of civil death when they take their vow of poverty and need not pay tax.

A three-judge Bench headed by Chief Justice of India D.Y. Chandrachud however did not agree.

The court said any person who receives a salary, whether a nun or not, has to pay tax. “The law is common for all… How can you say it is not subject to TDS?” the CJI asked.

“When an organisation pays a salary, whether it is retained by the person or paid elsewhere, either to the diocese or someone else, has nothing to do with taxability,” the Chief Justice reasoned.

The missionaries had argued that the salaries were are not used for the personal expenses of the nuns but go to the respective congregations.

They had contended that nuns take the three sacred vows of obedience, chastity and poverty after undergoing rigorous training. They cannot own property and never marry. Nuns live ascetic lives. The income they earn become that of their congregations, which submit tax returns if necessary.