As of May 31, 2013, direct taxes amounting to Rs 5.82 lakh crore are pending recovery for various reasons. Further, taxes locked up in various courts from one to two years – Rs 3,57,968 crore , from two to five years – Rs 1,48,907 crore, from five to ten years – Rs 34,935 crore and more than 10 years – Rs 61.72 crore. This huge amount of tax dues is solely because of court stays, untraceable assessees and pending litigation in the courts.
If you add up the total, it may amount to the country’s annual budget amount. Hence it is high time the central government devised a method by which these arrears could be recovered expeditiously. This will reduce the budget deficit to a greater extent. Finance ministry mandarins need to look into the matter vigorously.