The petition requested to abolish the framework of tax deduction at source under the Income Tax Act.

The Supreme Court has refused to consider the petition challenging Tax Deducted at Source (TDS). Along with this, the petitioner Bharatiya Janata Party leader has been directed to approach the High Court. The court also described the petition as ‘poorly prepared’. It was argued in the PIL that due to the provisions of TDS, pressure is put on the government to collect tax from source.

The petition had sought abolition of the tax deduction at source framework under the Income Tax Act, but the Supreme Court rejected it on Friday. The court said that this system is implemented everywhere. A bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar allowed lawyer and BJP leader Ashwini Upadhyay to approach the Delhi High Court.

Describing the petition as ‘very poorly drafted’, the bench said, “Sorry, we will not consider it… it is very poorly drafted. However, you can go to Delhi High Court.” The petition sought an order to abolish the TDS system, terming it ‘arbitrary and irrational’, even though this system is in force in many countries.

The petition challenged the TDS structure under the Income Tax Act, under which the payer is required to deduct tax at the time of making the payment and deposit it with the Income Tax Department. The amount deducted is included in the tax liability of the donor. The Central Government, Ministry of Law and Justice, Law Commission and NITI Aayog were made parties in the petition.