The debate over India’s tax structure has reignited after a tweet by SEBI-registered Research Analyst A K Mandhan highlighted stark disparities in taxation. The figures shared in his tweet have sparked outrage, particularly among salaried employees, who bear a significantly higher tax burden compared to other sectors.
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According to the tweet, a salaried individual earning Rs 9 crore pays Rs 4 crore in income tax, while a business generating Rs 20 crore in revenue pays only Rs 80 lakh. In contrast, agriculture revenue of Rs 40 crore is taxed at zero percent, and political parties with revenues as high as Rs 7,000 crore also contribute nothing in income tax. Even the Indian Premier League (IPL), a massive sports business with revenues of Rs 12,000 crore, reportedly pays no income tax.
Salary 9 CR
Income Tax 4 CR
Business Revenue 20 crore
Income Tax 80L~
Agriculture Revenue 40 CR
Income Tax 00.00
Political party revenue 7,000 crore
Income Tax…
— A K Mandhan (@A_K_Mandhan) March 17, 2025 Brain Drain: An Unavoidable Consequence?
With salaried employees shouldering the highest tax burden while other high-revenue sectors remain largely exempt, concerns over India’s brain drain have intensified. Many highly skilled professionals, especially in technology and finance, are opting to move abroad in search of fairer taxation, better income prospects, and improved quality of life.
The sentiment behind Mandhan’s tweet—“And they ask when is #India’s brain drain going to stop!”—reflects the frustration of millions of hardworking professionals who feel overburdened by taxation policies that disproportionately affect them.
The Growing Call for Tax Reforms
The discussion has sparked demands for tax reforms that ensure fairness across all income groups. Many argue that while salaried individuals contribute significantly to the national exchequer, political parties and large corporations enjoy tax exemptions that create economic inequality.
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As India’s young and skilled workforce contemplates global opportunities, policymakers may need to rethink the tax structure to prevent further brain drain and retain talent in the country. The question remains—when will the system be fair to all?
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