In a recent panel discussion at the Rising Bharat Summit in New Delhi on April 9, 2025, former Infosys Chief Financial Officer and IT industry veteran, Mohandas Pai, expressed deep concerns over the escalating issue of tax disputes in India. He highlighted that a staggering ₹30 lakh crore is currently entangled in tax disputes, with ₹15 lakh crore pending in court cases, 80-85% of which have arisen in the last five years.​

Pai, who has been an active participant in the business sector for over four decades, emphasized the persistent nature of regulatory challenges. He remarked that post-independence, the bureaucratic approach has often mirrored colonial attitudes, leading to a scenario where citizens feel subjugated by governmental authorities. This sentiment, he noted, permeates various regulatory frameworks, adversely affecting the business environment.​

Reflecting on the commitments made by the government, Pai recalled that in 2014, the then Finance Minister, Arun Jaitley, had pledged to put an end to 'tax terrorism.' However, contrary to this promise, Pai observed that the finance ministry has, over the years, endowed tax authorities with even greater powers, exacerbating the challenges faced by businesses and individuals alike.​

Delving into the specifics of tax collections, Pai pointed out that over the past four years, the government has amassed ₹75 lakh crore in direct taxes. This substantial collection raises pertinent questions about the actual efficacy of measures aimed at unearthing black money and the tangible outcomes of such initiatives.​The Indian Express

Pai's critique underscores a broader concern regarding the balance between tax enforcement and the creation of a conducive environment for business operations. The term 'tax terrorism' encapsulates the apprehensions of many in the business community who feel unduly pressured by aggressive tax collection practices.​

In light of these observations, Pai advocates for a comprehensive reassessment of the current tax administration system. He emphasizes the need for reforms that not only streamline tax collection but also ensure that businesses are not subjected to undue harassment. Such measures, he believes, are crucial for fostering a more transparent and business-friendly environment in the country.​

The concerns raised by Pai resonate with a significant segment of the business community, reflecting broader issues that have been the subject of ongoing debates and discussions. Addressing these challenges requires a concerted effort from policymakers, tax authorities, and industry stakeholders to strike a balance between effective tax collection and the promotion of a healthy business ecosystem.​

In conclusion, Mohandas Pai's insights shed light on the pressing need for tax reforms in India. By addressing the root causes of tax disputes and ensuring that tax authorities operate within a framework that prioritizes fairness and transparency, India can move towards a more robust and equitable economic landscape.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.