Privileges can’t override the law
The Delhi High Court has put a hold on processing ITRs of sitting and retired Supreme Court and High Court judges over a dispute on taxability of allowances.
The issue: The Income Tax Department wants judges to include rent-free housing, car, driver, and LTC in taxable income under the new tax regime. The judges’ association argues these are “conditions of service” and not income, and are exempt.
The court’s interim order stops the IT department from demanding PAN details and processing returns till the matter is decided.
This is awkward. The judiciary is questioning a tax law that applies to everyone else. Judges are not above the law. If allowances are part of salary, they should be taxed like any other government employee’s perks.
The association’s argument is that taxing these will “dilute independence.” But independence comes from security of tenure and pay, not from tax exemptions. If anything, special treatment erodes public trust.
The new tax regime was meant to simplify things by removing exemptions. Carving out judges creates a precedent. Tomorrow, every government service will demand the same.
The court must decide quickly. The longer this drags, the worse it looks — judges holding up their own tax filings.
In a democracy, no one should be above the tax code. Not politicians, not bureaucrats, and not judges. Equality before law must include equality in taxation.