The Supreme Court on Friday dismissed a Public Interest Litigation (PIL) that called for the abolition of the Tax Deducted at Source (TDS) system under the Income Tax Act. Chief Justice Sanjiv Khanna and Justice Sanjay Kumar ruled the plea as poorly drafted and advised the petitioner to approach the Delhi High Court instead.
The plea, filed by lawyer Ashwini Upadhyay and represented by advocate Ashwani Dubey, labeled the TDS mechanism as “arbitrary and irrational,” claiming it infringed on several fundamental rights, including the right to equality. The system, a standard practice in many nations, requires the payer to deduct tax at the time of payment and deposit it with the income tax authorities, with the amount being adjusted against the payee’s annual tax liabilities.
Chief Justice Khanna was explicit in his dismissal, stating, “Sorry we will not entertain it… It is very badly drafted. However, you can move the Delhi High Court.” He further noted that the TDS levy is commonplace in many countries, underscoring its global acceptance and implementation.
