Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide
 Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers
 Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It
 ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes
 Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs
 ITR Filing 2026: Section 143(1) Tax Demand Explained Reasons, Solutions, and How to Avoid Penalties & Disputes
 ITR Filing 2026: Over 3 Crore Income Tax Returns Filed for AY 2026 27 Income Tax Department Urges Taxpayers to Avoid Last-Minute Rush
 ITR Filing 2026: CBDT Upgrades Income Tax Portal Ahead of July 31 Deadline Key Changes Every Taxpayer Should Know
 Sold house for ₹1.10 crore, tax computed on ₹1.96 crore? ITAT explains when Section 54 relief is still available
 ITR 2026: How Taxpayers Earning 25 Lakh to 1 Crore Can Save Up to 1.5 Lakh Under the New Tax Regime
 Old vs New Tax Regime 2026: Which Saves More Tax If You Earn 13 Lakh?

Govt may have to write off Rs 85,000cr tax arrears
January, 05th 2007

The government may have to write off a whopping Rs 85,000 crore tax arrears out of the total arrears accumulated over the past years as these have been found "non-recoverable" by the Income Tax department.

Out of the outstanding Rs 1,19,000 crore tax arrears up to 2003-04, about Rs 85,000 crore is "non-recoverable". This includes Rs 28,400 crore outstanding against the Harshad Mehta group of companies, banks and stock brokers involved in the 1992 Securities Scam, sources in the Finance Ministry said.

The department, which has so far recovered about Rs 10,000 crore arrears against the target of Rs 11,000 crore for 2006-07, has expressed helplessness in recovering the "non-recoverable" tax arrears.

"About Rs 85,000 crore arrears are outstanding only on paper, and are mounting every year due to interest addition," a senior Income Tax official said.

The "non-recoverable" dues also include about Rs 12,000 crore against companies and assesses whose assets have reduced due to closure of the units or fall in stocks. In many cases, the companies have vanished from the market or funds have already been transferred elsewhere before the recovery of tax arrears, the sources said.

In the Harshad Mehta case, the custodian appointed by the Supreme Court is in possession of Rs 1,700 crore, which could be distributed only among various stakeholders after the decision of the case, sources said.

The department has also expressed doubts about recovery of tax arrears from companies and persons involved in various scams like the Telgi scam and the fodder scam in Bihar.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting