NewDelhi: On January 24, 2025, Friday, the Supreme Court of India rejected a constitutional challenge against the Tax Deducted at Source (TDS) provisions from the Income Tax Act through a Public Interest Litigation (PIL). TDS exists as standard tax practice throughout the whole world, according to the court’s declaration.
Chief Justice Sanjiv Khanna and Justice Sanjay Kumar granted lawyer Ashwini Upadhyay the right to petition his case through the Delhi High Court. The court stated that the poor preparation of the petition should be presented in front of the Delhi High Court.
The CJI Khanna told stakeholders, “We refuse to review this matter.” It is very poorly draughted. Under this situation you should present your petition to the Delhi High Court. According to his observation, numerous countries operate TDS systems. Under the submission of advocate Ashwini Dubey, the petition attacked TDS for harming fundamental rights, including equality, by being random and irrational.
The petition contests the Tax Deducted at Source framework within the Income Tax Act because it requires tax removal from payments made by payers and then tax deposits to the Income Tax Department. The deprived amount gets added to the recipient’s current tax obligations. The petition demanded responses from four organisations, including the Centre, the Ministry of Law and Justice, the Law Commission, and the NITI Aayog.