Supreme Court Rejects PIL to Scrap TDS System

The Supreme Court dismissed a PIL challenging the TDS framework under the Income Tax Act, suggesting it be moved to the Delhi High Court. The plea argued the TDS system as arbitrary and violative of fundamental rights. The court emphasized TDS exists in many countries.

The Supreme Court has rejected a public interest litigation (PIL) seeking to abolish the tax deducted at source (TDS) system under the Income Tax Act, stating that such a framework is implemented globally.

A bench, led by Chief Justice Sanjiv Khanna, along with Justice Sanjay Kumar, advised petitioner Ashwini Upadhyay to present the case to the Delhi High Court due to its inadequate drafting. The bench reiterated its stance that the TDS system is a common practice worldwide.

The plea, submitted through advocate Ashwani Dubey, labeled the TDS process as 'arbitrary and irrational,' infringing upon fundamental rights such as equality. The plea named several parties including the Centre, the Ministry of Law and Justice, the Law Commission, and NITI Aayog.

(With inputs from agencies.)