NEW DELHI: The Supreme Court of India, on Friday, declined to entertain a Public Interest Litigation (PIL) filed by lawyer and BJP leader Ashwini Kumar Upadhyay, seeking the abolition of the Tax Deducted at Source (TDS) system, terming it “arbitrary and irrational” and violative of fundamental rights, including equality. “We are not inclined to entertain the present PIL. We do not express anything on merits,” said a bench led by Chief Justice of India (CJI) Sanjiv Khanna in its order. The bench refused to pass any orders on the PIL and advised the petitioner, Ashwini Kumar Upadhyay, to approach the High Court instead. “You move the HC; there are judgements where the provisions of the tax law are upheld,” the bench remarked. Following the dismissal, Upadhyay stated his intent to take the matter to the High Court. The PIL, initially filed in the Supreme Court in December last year, listed the Centre, the Ministry of Law and Justice, the Law Commission, and the NITI Aayog as parties in the case. The PIL, submitted through advocate Ashwani Dubey, challenged the TDS framework under the Income Tax Act, which mandates the deduction of tax at the time of payment by the payer and its subsequent deposit with the Income Tax Department. The deducted amount is later adjusted against the payee’s tax liability. The petition argued that the TDS system disproportionately affects small earners and individuals below the taxable income threshold, as tax is often deducted at source despite their incomes being non-taxable.”This creates a system where small taxpayers are forced to file refund claims for excess TDS. It is economically unviable for many due to the cost of professional assistance and repeated visits to tax offices, which can lead to harassment and loss of time,” the petition stated.
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