Burden Of Taxation: Frustrated Entrepreneur Calls It Quits On 'Building In India' Dream, Triggers Debate

Rohit Shroff, an entrepreneur and partner at the content marketing platform Aflog Group, has sparked a viral debate after announcing his decision to abandon his 'Building in India' dream.

Citing a gruelling tax environment and a sense of systemic "suspicion" toward compliant taxpayers, Shroff revealed he has paid nearly Rs 4 crore in taxes (including GST and income tax) and plans to relocate his business operations abroad by 2026.

In a candid LinkedIn post, Shroff wrote about the frustrations of operating within India’s current fiscal framework. He argued that the system disproportionately targets the small minority of the population which is roughly 4–5%, that consistently pays income tax.

"It’s not about the fact that I’ve paid taxes," Shroff clarified in a recent conversation. "It’s about the systematic problem where individuals and companies that pay are looked at with suspicion. The 95% that don't file are the masses who get benefits because they are the vote bank."

Shroff described the administrative burden as "constant and layered," involving relentless scrutiny from GST teams and income tax authorities. He noted that businesses are forced to hire dedicated teams just to manage monthly GST, quarterly TDS, and annual filings, stating that "fighting the system costs more than submitting to it."

For Shroff, the decision to leave by 2026 is framed as an act of self-preservation rather than a lack of patriotism. He highlighted that seeing 10% of turnover stuck in TDS, coupled with frequent fines and notices, has made the "commercial reality" of building in India untenable.

The entrepreneur's post has generated quite a chatter in the community. While some critics argue that tax compliance is a standard requirement for success, many fellow founders have echoed his sentiments, sharing their own experiences of "clipped wings" and bureaucratic hurdles.

A founder, Rajan Singh wrote, "A friend was telling me that he was getting IT scrutiny every year. So he asked the IT officer, why? The officer said, there are so few people in Trivandrum who pay high taxes. So to meet their target, these are the people they have to target. It sounds weird but that's the reality -- they squeeze those who already pay a lot." [sic]

Soumitra Agarwal had a contrarian view. He wrote, "I have been running a business for last 9 years. Not one IT notice. Not one GST notice. Why? Because I am fully compliant. I pay my taxes on time. I keep all records in order. I file returns on time."

Another user Sree Ram Duvvuri echoed the sentiments of Shroff, "True. I concur with your opinion. I too was a firm believer in build our nation. Not any more. While I still wish India to grow and shine, not at the cost of my peace of mind." [sic]