The Supreme Court is to examine the Income tax TDS applicability on judicial pay allowances under the Second National Judicial Pay Commission.
The writ petition was filed by the All India Judges Association. During the hearing, amicus curiae K Parameshwar told the bench that many states are imposing TDS on the allowances given to judicial officers. He said that the issue required a determination.
Based on the indication provided that he would have the issue examined in the Revenue Department of the Ministry of Finance by Mr N Venkataraman, Additional Solicitor General, the bench of Justices CJI DY Chandrachud and Justices JB Pardiwala and Manoj Misra will examine the case in detail on August 5, 2024.
The allowances provided to the judges are House building allowance, Domestic help allowance, House Rent allowance, Special pay for judicial officers doing administrative work, risk allowance, Children education allowance, transportation allowance, telephone facility, Sumptuary Allowance, Robe Allowance ..etc. Thus, the question before the court is whether TDS provisions are applicable on the allowances given to the judicial officers as some states are imposing TDS.
Recently, the Supreme Court directed state governments to pay arrears to judges based on the enhanced pay scales recommended by the Second National Judicial Pay Commission (SNJPC). The Supreme Court accepted most of these recommendations, and the allowances must be paid by February 29, 2024.
The Supreme Court in that concerned judgment dated 4th January 2024 stated that “All States and Union Territories shall now act in terms of the above directions expeditiously. Disbursements on account of arrears of salary, pension and allowances due and payable to judicial officers, retired judicial officers and family pensioners shall be computed and paid on or before 29 February 2024. The CSCDJs institutionalized in terms of the directions issued earlier shall monitor compliance. Each Committee working under the auspices of the High Court shall submit its report to this Court on or before 7 April 2024 through the Registrar General of the High Court.”
The apex court, in its order dated 15th July 2024 stated that “The issue is whether the provisions for TDS will apply to allowances payable to the judicial officers under the Second National Judicial Pay Commission. Mr N Venkataraman, Additional Solicitor General, has indicated that he would have the issue examined in the Revenue Department of the Ministry of Finance. On the request which has been communicated by Mr N Venkataraman, further deliberation on this aspect shall stand over to 5 August 2024.”
Additionally, the applicability of the National Pension Scheme to judges in the district judiciary was listed for hearing on 22 July 2024 at 2 pm by the apex court.
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