PIL in SC seeks abolition of TDS system, cites constitutional violations
New Delhi (PTI): A PIL filed in the Supreme Court on Thursday sought to scrap the TDS system calling it "arbitrary and irrational" and violative of various fundamental rights, including equality.
The PIL challenged the tax deducted at source or 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.
The plea filed by lawyer Ashwini Upadhyay through advocate Ashwani Dubey, made the Centre, ministry of law and justice, law commission, and NITI Aayog as parties.
It sought a direction to "declare the TDS system manifestly arbitrary, irrational and against Articles 14 (right to equality), 19 (right to practice profession) and 21 (right to life and personal liberty) of the Constitution, hence void and inoperative".
The plea further sought directions to the NITI Ayog to consider contentions raised in the plea and suggest necessary changes in TDS system.
It said the law commission should examine the legality of the TDS system and prepare a report within three months.
The TDS system imposes significant administrative and financial burdens on taxpayers tasked with compliance which include managing complex rules, issuing TDS certificates, filing returns, and defending against penalties for inadvertent errors, argued the plea.
Assessees often incur substantial expenses, ranging from salaries of compliance staff to professional fees for tax consultants, without receiving compensation, it said.
The plea said the system violated Article 14 (equality before the law) by disproportionately burdening economically weaker sections and small earners who lack the capacity to navigate its technical requirements.
Referring to Article 23, it said the imposition of tax collection duties on private citizens amounted to forced labour.
The TDS system was stated to adversely affect individuals below the taxable income threshold, as tax was deducted at source irrespective of their liability.
"The regulatory and procedural framework surrounding TDS is excessively technical, often requiring specialised legal and financial expertise, which most assessees lack. The result is an unjust shifting of sovereign responsibilities from the government to private citizens without adequate compensation, resources, or legal safeguards," it said.
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Nashik TCS case: Accused Nida Khan held in Chhatrapati Sambhajinagar
Nashik (PTI): Weeks after she went into hiding, a female employee of the TCS unit in Nashik, accused in a case related to alleged religious conversion and sexual harassment of some women colleagues, has been arrested, police said.
Nida Khan was held on Thursday in Chhatrapati Sambhajinagar, Nashik Police Commissioner Sandeep Karnik said.
Khan is an accused in the Deolali Camp police station crime register number 156/26 here, he said.
A Special Investigation Team (SIT) of the Nashik police is probing nine cases of molestation and harassment at the IT major’s Nashik unit.
It had arrested eight persons, including a female operations manager, by registering nine FIRs after allegations of exploitation, attempt of forceful conversion, hurting religious sentiments, molestation and mental harassment of female employees at the TCS unit came to light.
The SIT had launched a search for Khan in different parts of Maharashtra. She is accused of targeting employees in a WhatsApp group, pressuring them to pray and eat non-vegetarian food.
According to the FIR, Khan allegedly advised women employees to dress and behave in accordance with Islamic traditions.
Some complainants have also alleged that they were coerced or pressured into adopting religious practices, including praying, changing dietary habits, and adopting religious symbols.
Besides Bharatiya Nyaya Sanhita (BNS) provisions for sexual harassment and defamation, Khan has also been booked under relevant sections of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, as the complainant belongs to a Scheduled Caste.
On April 18, she had moved the Nashik court seeking anticipatory bail and interim protection from arrest pending the plea hearing, citing her pregnancy. Her anticipatory bail plea was rejected by a court here on May 2.
TCS has clarified that it has adopted a zero-tolerance policy towards harassment and coercion of any form for a long time, and the employees allegedly involved in sexual harassment at the Nashik office have been suspended.
