Kerala High Court today held that nuns and priests employed in government service are liable to pay income tax.
The court passed the order dismissing 49 petitions by nuns and members of congregations, who are employed in aided educational institutions in the state.
Justice A K Jayshankar Nambiar upheld the stand of income tax authorities that tax was required to be deducted at source from payments by way of salaries, pensions from persons, who are members of religious congregations.
The court held that right to receive payments by way of salary or pension accrues to them as individuals and not to the congregations.
The petitioners contended that they have to handover their salaries to congregations and hence, it cannot be considered as their own income.
The court held that remuneration in the nature of salary and pension has to be treated as income.
