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May 29, 2007 10:44 IST
In a sign that people are paying additional tax demanded by the government, the income-tax authorities collected Rs 90,500 crore (Rs 905 billion) under this head during 1996-2005.
An income-tax official said this amount was 14 per cent of the total direct tax collections of Rs 6,50,184 crore (Rs 6501.84 billion) during 1996-2005.
The cash recovery of Rs 90,500 crore is 36 per cent of the recoverable tax demand of Rs 2,52,900 crore (Rs 2529 billion) that the department raised, in addition to the taxes paid voluntarily.
Of the total demand raised during 1996-2005, courts reduced tax liabilities worth Rs 1,17,788 crore (Rs 1177.88 billion).
"This success rate is the highest achieved by any tax authority in the world," said an official. The collection also underscores that voluntary compliance is low in India as compared to other countries.
A sum of Rs 55,000 crore (Rs 550 billion) is pending and seems to be unrecoverable as the taxpayers concerned have no assets left.
Much of this is against those involved in the 1991 securities scam. About Rs 27,000 crore (Rs 270 billion) is outstanding against Harshad Mehta and others. Mehta, who died in 2001, alone owed Rs 11,000 crore (Rs 110 billion) in taxes and interest.
Though the amount is unrecoverable, the department cannot write off Rs 55,000 crore (Rs 550 billion) under the existing laws and interest will continue to be added at the rate of 12 per cent a year.
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