Mohandas Pai shares his Budget 2025 wishlist: No tax up to ₹5 lakh, large tax slabs, relief for middle class & more
Former Infosys CFO TV Mohandas Pai has urged the government to implement significant reforms in the 2025 budget, focusing on tax relief for middle-class taxpayers amid rising tax collections and economic challenges.
Former Infosys CFO TV Mohandas Pai has requested a set of reforms in the upcoming budget, which is scheduled to be announced in February 2025.
Pai has asked Prime Minister Narendra Modi to make Budget 25-26 “a year of Big Reforms.” In a post on X, he suggested a list of reforms the government could implement.
According to him, the government should give relief to middle-class income taxpayers. The individual tax collection has gone up to ₹10.4 lakh crore in FY24 from ₹4.8 lakh crore in FY21, he said in the post.
“Pl give relief to long suffering middle class IT payers. They are very upset with NDA but voted for you. The individual tax collection has gone up from ₹4.87l cr in 20-21 to ₹10.45l cr in 23-24! 114% increase over 3 years. 24-25 gross Individuals IT collection up by 22%, net may reach 12.5l cr [sic],” Pai said.
The spending among middle-class taxpayers has lowered due to rising taxes, inflation, high school fees and a slow increase in income, he said.
The former Infosys CFO has requested enlarged tax slabs, wherein there should be no tax on income up to ₹5 lakh, 10 per cent on ₹5-10 lakh income, 20 per cent on ₹10- 20 lakh income and 30 per cent on income above ₹20 lakh.
“Pl enlarge tax slab- upto ₹5l no tax, 5-10l only 10%, 10-20l 20%, above 20l max 30%, with SC only above 50l. No deductions except 80 D and 80G. Scheme as an option in lieu of current complex option [sic],” Pai said.
He added that the government should tax income above ₹7.5 lakh for senior citizens over 60 and above ₹10 lakh for citizens over 70. Meanwhile, he added that there should be no compulsion to file income tax returns till ₹5 lakh income unless for a refund.
He also raised concern over lower spending by highlighting the issue of housing loans.
“Today deduction for housing loan is big but only 1.2cr tax payers out of 3.5 cr payers can get this as only they have housing loan. People need more money to spend. This will increase compliance from business too (sic),” Pai said.
“Pl Stop TAX TERRORISM as promised in 2014! Disputed amounts today above ₹12.5l cr from ₹4.5l in 2014. Big failure of ITD and @FinMinIndia,” he added.
He asked the government to focus on clearing tax disputes in the upcoming financial year by resolving issues of the Central Board of Direct Taxes (CBDT).
“Pl declare 2025-26 as Year of Tax dispute resolution. Focus on clearing tax disputes only Pl do not create new disputes for 2025-26 Every year appeals at CIT A has only gone up, shows gross inefficiency, tax terrorism and lack of focus by CBDT. Pl punish officials who lose multiple cases in court. Data says more than 70% disputes lost in appeal showing big tax terrorism and multiple cases of bad assessments [sic]," Pai stated.
Tax relief to middle-class
He once again requested relief for the middle class. Pai said the centre and state promote the welfare of the poor by giving subsidies, whereas the middle class is burdened with taxes.
“Pl give relief to IT paying honest middle class. Today centre and state spend more than ₹900,000 cr of subsidies in India for bottom 60% but middle class bears most burden of tax, getting poorer, ignored and very very angry with no relief. Cost of living has become unbearable to very many [sic],” Pai said.
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Business NewsIndustryMohandas Pai shares his Budget 2025 wishlist: No tax up to ₹5 lakh, large tax slabs, relief for middle class & more
First Published:2 Jan 2025, 10:34 AM IST
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