Businessman and Infosys co-founder TV Mohandas Pai has voiced concerns over India’s current tax policies, particularly those affecting the middle class. On August 28, Pai shared a chart on the social media platform X (formerly Twitter), highlighting discrepancies between individual incomes and corporate net incomes.
“Individual’s income is more than corporate net income, corporates pay higher average rate. Income tax data for AY 23-24 gives full data,” Pai commented in his post.
Individuals income is more than corporate net income, corporates pay higher average rate. @IncomeTaxIndia data for AY 23-24 gives full data @FinMinIndia @nsitharaman pic.twitter.com/NTjRKjNJqA
— Mohandas Pai (@TVMohandasPai) August 28, 2024
Pai has consistently criticised the government’s tax policies over the past few months, raising issues related to the burden on the middle and salaried classes. He has frequently expressed his concerns on social media and in various media interviews.
Earlier, Pai vehemently criticised the Rs 32,000 crore Goods and Services Tax (GST) demand issued to Infosys, calling it a prime example of ‘tax terrorism.’ He noted that Indian software service companies have been exporting for over 30 years, contributing to nearly 95 percent of export revenues. He emphasized that exports are exempt from GST. “If this notice is accurate, it represents a blatant case of tax terrorism. It’s outrageous,” said Pai, who is also the Chairman of Aarin Capital, in an interview with Moneycontrol.
“The Finance Ministry should intervene immediately. Such tax terrorism severely affects investment into India,” he added.
On the other hand, Congress leader Rahul Gandhi has intensified his criticism of the government’s tax policies, accusing the Centre of engaging in “tax terrorism.” Gandhi alleged that the government is placing an undue tax burden on the middle class to benefit corporate “friends,” according to a report by PTI.
Gandhi questioned why the middle class, which already bears the brunt of high GST on goods, is subjected to increasing tax rates. He argued that this taxation strategy serves the interests of the wealthy while further burdening ordinary citizens.
In response to the growing discourse, Revenue Secretary Sanjay Malhotra provided updates on the income tax department’s recent activities. On August 21, Malhotra announced that nearly 4.98 crore income tax returns (ITRs) for AY 2024-25 had been processed within 15 days. He also noted that over 7.28 crore ITRs were filed by the July 31, 2024 deadline.
Malhotra highlighted the significant growth in direct tax revenues over the last decade, which have risen from Rs 5.59 lakh crore to Rs 20 lakh crore. The tax-to-GDP ratio has also seen an increase from 5.6 per cent to 6 per cent during this period.
As the debate over tax policies intensifies, the middle class remains at the forefront of this ongoing discourse.
