Supreme Court Rules Salaries Of Nuns And Priests In Aided Schools Are Taxable

The Supreme Court upheld the Madras High Court’s decision, affirming that salaries of nuns and priests working in aided schools are subject to income tax. The court dismissed over 90 petitions from religious groups seeking tax exemptions. The bench clarified that salary grants to schools, even if directed to religious orders, require tax deductions at source (TDS), as they are not exempt from taxation.