A Public Interest Litigation (PIL) has been filed in the Supreme Court challenging the Tax Deducted at Source (TDS) system, calling it “arbitrary, irrational, and violative of fundamental rights.”

Advocate Ashwini Kumar Upadhyay has filed a PIL in the Supreme Court challenging the TDS system, calling it arbitrary, irrational, and violative of fundamental rights under Articles 14, 19, and 21 of the Constitution.

The petition argues that TDS disproportionately burdens assessees, especially economically weaker sections, with significant administrative and financial responsibilities they cannot easily manage.

It claims the system’s procedural framework is too technical, requiring legal and financial expertise that most individuals lack, unfairly shifting government responsibilities to private citizens.

The plea refers to Article 23, arguing that imposing tax collection duties on private citizens amounts to forced labour without adequate compensation or safeguards.

It urges the Supreme Court to direct the NITI Aayog to review the TDS system and recommend necessary changes while asking the Law Commission to examine its legality and submit a report within three months.

The petition adds that TDS ensures steady revenue for the government but imposes obligations like determining applicable rates, deducting taxes, filing returns, issuing certificates, and defending against penalties for non-compliance.

The Income Tax Act mandates tax deduction at the source on payments like salaries, rents, commissions, and other taxable sums, with deductions adjusted against the payee’s tax liability.

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