The Chief Justice of india led a three-judge bench that based its ruling on the idea that everyone receiving a wage is required to pay income tax, regardless of their religious affiliation. "What is the use when they say they are nuns and not pay tax?" said the Chief Justice. The court explained that since income is taxable regardless of its final use, it makes no difference if a salary is kept by the individual or given to the diocese or congregation.
The petitioners argued that nuns' income is intended for their congregations rather than for their own use. They maintained that nuns give up all personal ownership and material belongings after committing to the vows of poverty, chastity, and obedience. These devout ladies don't get married and live austere lifestyles. According to the petitioners, the congregations should be deemed to own the revenue they produce and would submit tax reports if necessary.
A nun who takes the vow of poverty renounces all worldly connections, including any inheritance rights from her natural family, according to one petition. A nun would not be able to inherit property from departed family members as a result of this renunciation, which is known as a type of "civil death."
The missionaries contested a Dec. 1, 2014, instruction from the Income Tax Department that directed district treasury officers and educational authorities to collect tax at source (TDS) from government-paid members of religious groups. The kerala High court had earlier heard the case and affirmed the instruction, holding that civil law could not be superseded by the internal norms of religious institutions, such as a congregation's claim to have a "overriding title" over its members.
This supreme court judgment, which affirms that all people have equal tax duties regardless of their degree of religious devotion, is a landmark in the ongoing discussion about how income tax rules should be applied to those with religious convictions.