Judges vs Tax Dept: Does Your ITR Face Delays?

The Delhi High Court has told the income tax department to pause processing ITRs of High Court and Supreme Court judges. The dispute is about whether certain judicial allowances are taxable under the new tax regime. Here's what it means for regular taxpayers.

Here's what happened: Delhi High Court directed the income tax department to halt processing of ITRs filed by Supreme Court and High Court judges under the new default tax regime.. The dispute is about whether judicial allowances — such as house rent and sumptuary allowances — can be brought under the new tax regime's tax net, given constitutional protections for judges.. Judges argue that taxing these allowances under the new regime effectively reduces their compensation after appointment, potentially violating Articles 125 and 221 of the Indian Constitution..

What you should do: Check your own ITR status on the income tax e-filing portal (incometax.gov.in) — this court order does NOT affect processing of regular taxpayer returns.. If you are a government employee with service-specific allowances, track this case's outcome — a ruling in judges' favour could open doors for broader allowance exemption claims.. Compare old vs new tax regime benefits for your salary slab using the income tax department's free online calculator before the July 31 ITR deadline to avoid last-minute regime confusion..

Pro tip: Even if you filed your ITR under the new regime, you can switch back to the old regime next year if you have no business income — salaried employees get this flexibility every financial year.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.