Dipu Rai
The Union government is yet to recover direct tax arrears of over Rs 8 lakh crore. Worse still, the Income-Tax (I-T) department says 81% of it is not recoverable and has put it under the 'difficult to recover' category. This means there will be no recovery of Rs 6.73 lakh crore.
A paper presented during the recently held All India Conference of Chief Income Tax Commissioners stated that the department might recover 19% of Rs 8 lakh crore. But there's a rider: even this is going to be a 'tough task'.
So, who are the defaulters? Two-thirds of them owe just Rs 5,000 or below and only Rs 15,000 crore worth tax is pending with these defaulters. The real culprits are the top tax payers, who owe over Rs 6 lakh crore to the government.
The government has identified 17 categories of tax payers from whom recovery will be difficult. Many of them are 'untraceable' and this category owes Rs 3 lakh crore. There are many tax payers who don't have any asset and they owe Rs 2.5 lakh crore. A mismatch between actual tax and Tax Deduction at Source (TDS) has also resulted in a loss of more than half-a-lakh crore rupees.
At the end of financial year 2015, total outstanding tax demand was more than Rs 8.27 lakh crore.
The government has started naming and shaming the worst tax offenders. Senior finance ministry officials said that the "publication of names of tax defaulters in the public domain will continue".
The I-T department had published 49 names last year. Officials hinted that names will be published this year, too. I-T officials are busy making the 'name-and-shame' list to be submitted by July 31, 2015.
The government is also planning to obtain details of bank accounts, debtors and account of assets at the assessment stage itself to check 'untraceable' defaulters. It will also going access transaction statements to ensure that no defaulter goes untraceable.
Outstanding tax demands continue to rise year after year. The situation has become very alarming and has drawn adverse reactions from various agencies. The Parliamentary standing committee on finance has stated in its latest report: "It defies logic as to why this captive source has been given a long rope and the government is exploring all avenues including disinvestment etc to mop up funds…"
FY Outstanding Tax Demand
(In Rs Cr)
2011-12 = 2, 48,927
2012-13 = 3, 33,079
2013-14 = 4, 82,027
2014-15 = 5, 80,325
2015-16 = 8, 27,680
