January 24, 2025: The Supreme Court on Friday dismissed a public interest litigation (PIL) filed by Bharatiya Janata Party (BJP) leader Ashwini Kumar Upadhyay, seeking the abolition of the 'tax deducted at source' (TDS) system.

A bench comprising Chief Justice of India (CJI) Sanjiv Khanna and Justice Sanjay Kumar declined to hear the matter, citing poor drafting of the petition and suggesting the petitioner approach the High Court for relief.

"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," remarked CJI Khanna while delivering the bench's decision.

In the petition, Upadhyay highlighted the administrative and financial burden imposed on individuals and entities required to comply with TDS regulations. He argued that the system unfairly shifts the government's responsibility to taxpayers without compensation.

The TDS mechanism, introduced to curb tax evasion, mandates deductions at the source of income for payments like salaries, rents, and commissions when they exceed specified limits. These deductions are credited to the government on behalf of the payee.

"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 stated.

Despite the petitioner's concerns, the court upheld the system's validity, referring to previous judgments that reinforced its importance in ensuring tax compliance.