The income tax department has so far collected Rs 3,500 crore (Rs 35 billion) in tax arrears, which is half of the targeted Rs 7,000 crore (Rs 70 billion) set for this fiscal.

"We have so far collected Rs 3,500 crore of undisputed tax arrears out of the target of Rs 7,000 crore fixed in the Budget for 2004-05," a senior finance ministry official said in Delhi on Monday.

Total undisputed recoverable tax arrears is estimated at Rs 17,000 crore (Rs 170 billion) as against total arrears of Rs 87,885 crore (Rs 878.85 billion).

Of the total tax arrears, the two scam-tainted brokers -- Ketan Parekh and late Harshad Mehta -- accounted for Rs 30,000 crore (Rs 300 billion).

While Mehta owes the tax department Rs 18,000 crore (Rs 180 billion), Parekh has to pay Rs 12,000 crore (Rs 120 billion).

The government has so far recovered a meagre Rs 1,300 crore (Rs 13 billion) from Mehta. It has plans to mop up recoverable arrears worth Rs 1,000 crore (Rs 10 billion) from Parekh's assets.

In his Budget, Finance Minister P Chidambaram announced additional revenue mobilisation measures -- recovery of tax arrears, securities transaction tax and service tax, apart from measures to plug tax evasion by high net worth individuals.

He had directed taxmen to go all out for the tax arrears, which are undisputed and recoverable, to raise over Rs 7,000 crore this fiscal.