STOCK MARKET BSE NSE

Pending cases: Over Rs three lakh crore tax amount stuck in litigation

Even as the Income Tax department has warned against tax evasion, a government estimate has pegged the share of arrears locked in litigation at more than 85 per cent.

Published: 23rd April 2018 03:45 AM  |   Last Updated: 23rd April 2018 08:21 AM   |  A+A-

Over 2.40 lakh cases related to direct tax and about 1.18 lakh related to indirect tax are pending. Officials say only a small portion of all arrears is actually collectable.

Express News Service

NEW DELHI: Even as the Income Tax department has warned against tax evasion, a government estimate has pegged the share of arrears locked in litigation at more than 85 per cent.

More than Rs 3.2 lakh crore as tax amount is stuck because of lakhs of pending cases in courts, according to the department.

Over 2.40 lakh cases related to direct tax and about 1.18 lakh related to indirect tax are pending. Officials say only a small portion of all arrears is actually collectable.

READ | Without bills, tax evasion a possibility

Considering the collectability of arrears under different categories, the government sets a target every year for the recovery of outstanding taxes, and closely monitors the progress by the field authorities.

ALSO READ | Post GST, Hyderabad has 30,000 tax evaders

As far as direct taxes are concerned, 33,554 cases are pending for more than five and less than 10 years, while 4,230 are more than 10 years old.

“Comparing the total pendency of arrears with actual recoveries to arrive at a success percentage of arrears recovery is like comparing the incomparable because more than 85% of pendency is locked up in litigation/restraint, which is not recoverable till the judicial fora takes a final decision, which takes more than five years in most cases,” the Centre said in a recent reply in Parliament.

Strategies and targets for recovery of arrears of taxes are laid down as part of the annual Central Action Plan document, said officials. A new reward scheme for information leading to recovery of arrears has also been notified.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp