Legal Battle Over TDS System: A Call for Reform in India's Tax Landscape

A Public Interest Litigation (PIL) filed in the Supreme Court challenges the rationality of India's TDS system. The plea argues that TDS violates constitutional rights and imposes undue burden on taxpayers, especially those from weaker financial backgrounds. It urges legal and policy reforms for a more equitable tax system.

A Public Interest Litigation (PIL) was filed in the Supreme Court on Thursday, challenging the TDS system under the Income Tax Act. The plea describes the system as 'arbitrary and irrational,' claiming it violates fundamental rights like equality.

The PIL, represented by lawyer Ashwini Upadhyay, aims to make the Centre, along with the ministry of law and justice, law commission, and NITI Aayog, parties in the case. It calls for the system to be declared invalid and contrary to constitutional Articles 14, 19, and 21.

Arguing that TDS imposes financial burdens on taxpayers, the plea highlights the costs involved in compliance. It criticizes the system for disproportionately affecting the economically weaker sections, urging the NITI Aayog to consider reforms and the law commission to review its legality. The PIL also claims that the system unjustly shifts governmental responsibilities onto citizens.

(With inputs from agencies.)