The Madras High Court on Friday ordered status quo on TDS (Tax Deduction at Source) exemption given to nuns and priests working as teachers.
Justice R. Mahadevan gave the direction on two separate petitions moved by Nirmala Education Society, Coimbatore, and Stella Maris College, Chennai, challenging a recent circular of the Income Tax Department ordering TDS from the incomes earned by the nuns and priests working as teachers
The petitioners submitted that taking into account the religious status of its members and charitable nature of the society, the Income Tax authorities had in January 1944 given TDS exemption to their income.
Contending that this position had been upheld by the Supreme Court and High Courts in various judgments, the petitioners sought quashing of the circular of the Income Tax Department ordering TDS from the incomes earned by nuns and priests who worked as teachers.
