Plea seeking quashing IT circular mandating TDS deduction of

The Madras High Court today allowed a plea seeking to quash an Income Tax circular mandating deduction of TDS from salaries and pensions of nuns and fathers of a minority school on condition that their pay be credited to the society or congregation they belong to.
Justice B Rajendran stipulated the condition while allowing the petition by Neela Chinna Rani, correspondent of Holy Cross Primary school here.
She sought quashing of the circular of Income Tax authorities, asking the school, a registered society of a congregation, to deduct TDS from religious nuns and fathers, who are also teachers.
The October 7, 2015 circular and another of the Director of Treasuries and Accounts were arbitrary and illegal, she contended.

Under the Income Tax Act, exemption was given to them taking into account factors like the charitable nature of the society.
The petitioner claimed that nuns and fathers did not carry any amount as their personal income and gave the money to the congregation.
The IT exemption in vogue for the congregationall these yearshad been cancelled and withdrawn after the circular. Neither a notice nor opportunity was given to the congregation or to religious nuns employed in the school.
The order sought to interfere in the petitioner's right to establish and administer the institution as a minority institution, the petitioner submitted.