Direct tax arrears up 10% in H1

Despite a series of measures in the past year to curb the arrears in direct tax collection, a sum of R3.67 lakh crore claimed by the tax department remained unrealised at the end of the first half of this fiscal. The arrears were up 10% over the level at the start of the year. The direct tax arrears consist of mainly amount locked in litigation.However, the growth in arrears has moderated when compared to previous fiscal. At the end of March 2011, the direct tax arrears stood at R3.3 lakh crore, an increase of over 30% over the level a year ago.The arrears are 70% of the direct tax collection target for this fiscal and could prompt the finance minister to take a few more steps in the Budget to curtail it.

Source: Financial Express