The many write ups which have recently appeared in the media about the tax notice to the Church authorities in Goa have not yet cleared the issue whether the Church in Goa with its affiliated Bodies/ Institutions, like Fabricas, Cofres and Confrarias in the Parishes are subject to income tax, in Goa.
It has been clearly said that Temples are exempted from Income Tax, in Goa, under the Portuguese Act on Regulations of Mazanias and Devalias of the former Estado da India, still in force in Goa.
A few have even raised the issue of discrimination.
It is to be clarified that the Church in Goa with its affiliated bodies /Institutions are also exempted from paying any kind of tax under the Agreement between Holy See and Portuguese State called Concordata of the year 1940. The decree no. 35461 dated 20th October 1946, has given its full effect to the same in Goa. Number 8 of the said Concordata exempts the Church from the payment of any kind of tax to the State. This Concordata has been upheld by the Bombay High Court (Goa Branch) in more than one case from 1980 and as recently as 2013.
The reason for exempting the Temples and the Churches from the purview of Income Tax is that the Temples, Churches and other religious bodies are not profit-making institutions. Whatever funds are generated by way of gifts/donations or income from properties is meant for the day to day maintenance of the cult, priests, payment of the other staff serving in these institutions, works of charity, upkeep of the buildings and their timely repairs which today amounts to lakhs if not crores of rupees. All these aims are to be met without further burdening the already overburdened followers of these cults.
Moreover the land on which these Temples and Churches stand were gifted by the Village Comunidades which are non-revenue lands and if the principal is not under revenue neither the secondary can be, under it.
I hope this will clear any doubts on the issue.
