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Bengaluru News: A Bengaluru-based entrepreneur has raised concerns about India’s taxation and compliance framework, saying it puts heavy pressure even
on businesses that follow the rules. Rohit Shroff, founder of the Aflog Group, revealed that he plans to leave India in 2026 because, in his view, the system of doing business here is 'flawed'. In a post on LinkedIn last week, Shroff said he had paid around Rs 4 crore in taxes over the past 18 months. He questioned why businesses that comply fully and pay taxes honestly still face constant suspicion. “In the last 12–18 months, across my businesses, in GST and income tax, I’ve paid over Rs 4 crore to a country that looks at its most compliant contributors with suspicion by default," he wrote.
Constant Scrutiny for Compliant Taxpayers
Shroff stressed that less than 5 per cent of Indians pay direct income tax, yet this small group faces repeated scrutiny. Notices, clarifications, and audits often target the same compliant taxpayers over and over.
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“This scrutiny is constant and layered," he said, explaining that both local GST authorities and national income-tax teams are involved. Despite this, businesses continue to comply, managing monthly GST filings, quarterly TDS payments, and annual income-tax returns.
No Tangible Benefits for Businesses
According to Shroff, businesses receive no clear benefits for their compliance. He said that responding to notices and clarifications often costs more time and money than simply going along with the process.
As a result, many entrepreneurs choose to comply quietly, even though the process is complex and demanding. Shroff questioned the value of a system where compliance brings neither recognition nor reward.
Shroff argued that the system is designed to please the majority, not the small group of consistent taxpayers. He said tax-paying business owners are politically insignificant and therefore easy to burden.
“The system is designed to win the confidence of the majority, not to enable the minority that builds formally and pays consistently," he wrote.
Indians Succeed Abroad
Shroff noted that many Indians succeed abroad because they are not held back by such systems. In contrast, he said India’s framework penalises growth rather than encouraging it.
“I’m done living the ‘building in India’ dream," Shroff wrote. “The goal for 2026 is simple: move out of the country and build elsewhere."
He added that his decision is not about patriotism but about reality, saying the system does not offer genuine ease of doing business.
