Taxes are collected to service Poor and Jesus says Taxes must be paid.
Mark 12:14-17Q-Is it correct to pay Taxes.
Jesus said to them, "Give back to Caesar what is Caesar's and to God what is God's." And they were amazed at him.
Romans 13:1Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God. 2 Consequently, whoever rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves.
Kerala HC says priests drawing govt salary liable to pay income tax
Upholding the IT Department directive, HC observed that it was the govt which pays salary for the petitioners.
Kerala High Court on Friday has held that the priests and nuns drawing government salary were liable to pay income tax. Justice A K Jayasankaran Nambiar said that if the salary of priests and nuns working in government-aided institutions is submitted to the common pool of their congregation, such congregations have to pay the income tax on account of the individual income of inmates drawn from the government.
As many as 49 priests and nuns, working as teachers in government-aided educational institutions, had moved to the High Court challenging the order of the Income Tax Department to the State Treasury Department that tax has to be deducted at source from salary and pension payments.
Upholding the Income Tax Department directive, the court observed that it was the government which pays salary for the petitioners as employees of the government-aided institutions.
The court said if the priests and the nuns hand over their income to their religious congregation with the support of a legal agreement, the clergy need not pay tax individually. However, their congregations have the liability to pay the income tax of members drawing government salary. However, to consider the clergy as income tax assessee, the court said it should be ascertained whether there is a legal pact between the clergy and their congregations regarding the transfer of individual income to the account of the institution.
The petitioners had contended that they were members of religious institutions and hence were exempted from income tax. They said their government payments, both salary and pension, have been credited into their institutions and they were not liable to pay income tax. They cited a circular issued by the Central Board of Direct Taxes in 1944 and another directive in 1977, which allowed income tax exemption for those who handed over their payments to religious institutions. However, the Income Tax Department, in an affidavit, pointed out that the stated circulars did not insulate salary payments from the liability of income tax.
Nuns, priests in govt service have to pay income tax: Kerala HC
PTI | Feb 5, 2015, 09.29PM IST
he court passed the order dismissing 49 petitions by nuns and members of congregations, who are employed in aided educational institutions in the state.
Justice AK Jayshankar Nambiar upheld the stand of income taxauthorities 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.
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