The Supreme Court on Friday (January 24, 2025) refused to consider a PIL filed with a request to abolish the Tax Deducted at Source i.e. TDS system under the Income Tax Act and said that it would have been imposed everywhere. Is.
The bench of Chief Justice of India (CJI) Sanjiv Khanna and Justice Sanjay Kumar has, however, allowed lawyer Ashwini Upadhyay to file his petition in the Delhi High Court. The bench said that the petition has been very poorly prepared and it should be filed in the Delhi High Court.
The CJI said, ‘Sorry, we will not consider it… it is very poorly drafted. However, you can go to Delhi High Court. He said that there is a system of imposing TDS in many countries. In the petition filed through Justice Ashwini Dubey, a direction was sought to abolish the TDS system, calling it arbitrary and irrational and it has been described as a violation of various fundamental rights including equality.
The petition challenges the TDS structure under the Income Tax Act, which makes it mandatory for the payer to deduct tax at the time of payment and deposit it with the Income Tax Department. The amount deducted is adjusted against the tax liability of the donor. The Centre, Ministry of Law and Justice, Law Commission and NITI Aayog were made parties in the petition.