The Supreme Court of India has dismissed a petition filed by BJP leader Ashwini Kumar Upadhyay, which sought to scrap the ‘tax deducted at source’ (TDS) system.
The court’s decision means that the TDS system will continue to be in effect. This is a developing story and will be updated as more information becomes available.
A bench comprising Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar declined to hear the case but advised the petitioner to seek relief by approaching the High Court.
“Sorry, we will not entertain. It is very badly drafted. You can move the High Court. Some judgments have upheld it. Sorry. We will not entertain. Dismissed,” CJI Khanna said.
Ashwini Kumar Upadhyay expressed concerns over the administrative and financial challenges faced by individuals and entities required to comply with TDS regulations.
The TDS system was implemented to prevent tax evasion. It applies when one party (the deductor) is required to make payments such as salaries, rents, or commissions to another party (the payee). If these payments exceed a specified limit, they become subject to tax deductions.
“The government does not lack the resources to directly collect taxes through its tax department. Still, it transfers the responsibility to TDS assesses without remuneration,” the plea said.