The Unseen Revenue Stream: A Study on the Unregulated Coaching Institutes and its Tax Evasion

The Indian education system has seen a significant increase in the number of coaching institutes, which have turned into a lucrative industry. However, these institutes operate in a largely unregulated manner, lacking any legal framework for their establishment and operation. This study investigates the tax obligations of these unregulated coaching centers and their effects on student welfare. Despite charging high fees, they offer inadequate facilities and poor infrastructure, leading to tragic incidents, such as the deaths of several students in a Delhi coaching institute's basement. These institutes often use misleading advertisements to attract students and gain the trust of parents. Additionally, I examine the adverse effects on student well-being, including stress and mental health issues, stemming from the absence of proper oversight and support. The rise in mental health problems among students is concerning, with many facing depression, anxiety, and even suicide. It is essential for the government to create a regulatory body to monitor coaching institutes, ensuring they provide quality education and infrastructure while adhering to tax regulations.