NEW DELHI: The Supreme Court on Friday refused to entertain a PIL seeking scrapping of tax deducted at source (TDS) framework under the Income Tax Act, saying this is levied “everywhere”.
A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, however, permitted lawyer petitioner Ashwini Upadhyay to move the Delhi HC with his plea.
The bench observed that the plea was “very badly drafted” and should be moved in the Delhi High Court.
“Sorry we will not entertain it... It is very badly drafted. However, you can move the Delhi High Court,” the CJI said, adding levy of TDS has been the practice in many countries.
The plea filed through advocate Ashwani Dubey sought to scrap the TDS system calling it "arbitrary and irrational" and violative of various fundamental rights, including equality.
It 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 deposit with the income tax department. The deducted amount is adjusted against the payee's tax liability.
The plea had made the Centre, ministry of law and justice, law commission, and NITI Aayog as parties.