SC refuses to examine PIL for scrapping TDS system under income tax law

New Delhi: The Supreme Court on Friday refused to examine a PIL seeking scrapping of tax deducted at source (TDS) framework under the Income Tax Act and said it was levied everywhere in the world.

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar said TDS was levied almost everywhere in the world, and moreover, there were judgements in support of it.

The PIL challenged the TDS framework under the Income Tax Act, which mandates the deduction of tax at the time of payment by the payer and its deposit with the income tax department.

The deducted amount is adjusted against the payee’s tax liability.