Mohandas Pai Slams 'Tax Terrorism', Calls Out Regulatory Overreach and Judicial Delays:

Former Infosys CFO and industry veteran Mohandas Pai has raised strong concerns about India's income tax framework, calling it oppressive and overreaching. Speaking at the Rising Bharat Summit in New Delhi on April 9, Pai described the growing burden of tax disputes as “enormous” and “unprecedented”.

“Today, there is Rs 30 lakh crore of tax amount stuck in disputes, and Rs 15 lakh crore is under litigation. Around 80-85% of this has occurred in just the last five years,” Pai said during a panel discussion.

Regulatory Overreach: 'Subjects, Not Citizens'

Reflecting on his 40-year experience in business, Pai said regulatory oppression remains a persistent issue. “Brown imperialists took over after the British. We’re not treated as citizens but as subjects and victims by the government,” he remarked, targeting both central and state bureaucracies.

Pai, who now heads Aarin Capital Partners, also criticized the systemic approach to governance, suggesting that many regulations are designed under the assumption that “everyone is a crook except the authorities.”

Broken Promises and Empowered Tax Authorities

Pai recalled former finance minister Arun Jaitley’s 2014 promise to curb “tax terrorism”, but argued that things have only worsened. “No finance minister in the last 35 years has given more power to tax authorities to oppress people than the current regime,” he said.

He added, “Every time they change a law, they only expand the authority of tax officers. The result is that regulatory pressure keeps increasing.”

Rs 75 Lakh Crore in Direct Taxes – Where Is the Black Money?

Pai questioned the effectiveness of government efforts to crack down on black money. “In the last four years, we’ve collected Rs 75 lakh crore in direct taxes. But how much black money has actually been discovered? How much tax has been collected from it?” he asked.

He also criticized the now-defunct Angel Tax, calling it one of the many policies that punished innovation and startups without addressing the core issue of unaccounted wealth.

Pai’s Verdict: Tax Oppression Is India’s Biggest Problem

Concluding his remarks, Pai emphasized the need for policy reform. “The political establishment is weak. They don’t address this issue. The saddest reality in the country today is tax oppression,” he said.

He also took a swipe at the Reserve Bank of India (RBI), claiming, “People in Mint Street believe they alone are saving India from financial ruin, treating everyone else as potential looters.”