News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« Direct Tax »
 Direct tax collection picks up
 Can you claim income tax refund if you fail to file revised return within time limit?
 How cost inflation index helps you bring down your tax liability on LTCG
 New Income-tax law – third time lucky?
 ITR filing done, what next? Here are some easy steps to verify return digitally
 Penalty you will pay for not filing income tax return before deadline
 CBDT launches one-time facility for compounding of income tax offences
 Centre may tweak Income Tax Act, won’t replace it with direct tax code
 Government to tweak Income Tax Act, won’t replace it with direct tax code
 Monetary limits won't matter in organised tax evasion, says CBDT
 ITR Filing 2019: Filing income tax returns for FY 2018-19? Here is all you need to know

Direct tax arrears touched a staggering Rs 2.49 lakh crore
November, 26th 2010

Direct tax arrears touched a staggering Rs 2.49 lakh crore last fiscal, and of this, an amount of Rs 1.43 lakh crore is seen to be difficult to recover.

The tax arrears are tax demand raised by the revenue department but not realised along with the amount of tax blocked in litigation and appeals at various levels. About Rs 41,000 crore direct tax arrears were locked up in litigation till March 2010.

The reason as to why tax arrears are difficult to recover is that in some cases there are no assets for recovery like the Rs 71,000 crore in the case of Hassan Ali and in some cases the court has to give a direction like the Rs 35,000 crore arrears associated with Harshad Mehta scam, a finance ministry official told FE.

There may be a case of liquidation or the tax amount is pending a decision at the Income Tax Settlement Commission or the Board for Industrial and Financial Reconstruction (BIFR).

The total amount of direct and indirect tax arrears if recovered could overshoot the budget target by almost 40% (Rs 2.93 lakh crore) of Rs 7.46 lakh crore that the government aims to mop-up in this financial year.

The indirect tax component of arrears was Rs 44,212 crore. The tax arrears have been adding up over the last three years. While the direct tax arrears stood at Rs 2.13 lakh crore till March 2009, the indirect tax arrears was Rs 33,790 crore in the same period.

The amount was way less in 2008 with the income tax and other direct tax arrears being at over Rs 1.3 lakh crore while the customs, excise and service tax arrears were about Rs 30,000 crore.

The government aims to recover Rs 13,906 crore of direct tax arrears and Rs 3,250 crore of indirect tax arrears in the current financial year. However, on the direct taxes front, arrears of Rs 4,400 crore from this amount has already been recovered.

The total tax collection target for the current financial year is Rs 7,46,651 crore where the amount of almost over 17,000 crore would be a bonus as it has not been separately accounted in the receipts budget.

The target for recovery of tax arrears pertaining to direct and indirect taxes is fixed at the beginning of the respective financial year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions