Former Infosys CFO and prominent IT industry veteran T.V. Mohandas Pai has launched a scathing critique of what he terms "tax terrorism" in India, warning that the burden of income-tax oppression is "enormous" and has intensified over the last five years.
Speaking at an event held in New Delhi on April 9, Pai revealed that nearly Rs 30 lakh crore is currently entangled in tax disputes, with Rs 15 lakh crore worth of cases pending in court. "Eighty to eighty-five percent of this has happened in just the last five years," he said, calling the trend deeply concerning for entrepreneurs and businesses.
Pai, who now chairs Aarin Capital Partners, drew on his four decades of experience in the corporate world to slam what he called "regulatory oppression." He lamented that the post-independence Indian state replaced colonial rule with its own version of "brown imperialism."
"We are subjects and victims of the government in Delhi, Bangalore, and other places. They behave like rulers, and that authoritarianism reflects in how regulations are framed and implemented," he said.
Recalling the late Finance Minister Arun Jaitley's 2014 promise to eliminate "tax terrorism," Pai said the situation has worsened since. "Unfortunately, instead of reform, we've seen even more power handed to tax authorities than ever before in the past 35 years."
Pai also raised critical questions over the effectiveness of India's tax administration. "In the last four years alone, the government has collected Rs 75 lakh crore in direct taxes. But how much black money has actually been uncovered? What was the point of Angel Tax for eight years?"
Calling the political establishment "very weak," Pai warned that it fails to confront the excesses of regulatory and tax enforcement bodies. "The saddest reality for India today is tax oppression," he said.
In a pointed critique of India's financial regulatory mindset, Pai said, "The RBI, the people in Mint Street, act like they are the sole saviors of India's economy. According to them, everyone else is a crook-only they are noble."
Pai's remarks are likely to fuel debate over the balance between tax compliance and ease of doing business in India, especially as startups and corporations voice concerns over arbitrary assessments, retrospective demands, and prolonged legal battles.
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