India's Struggle to Track Tax Defaulters

India faces challenges in recovering over Rs 5.91 lakh crore from 47,674 untraceable direct tax defaulters. Similarly, 60,853 indirect tax defaulters owe Rs 43,525 crore. The government employs measures from the CBDT and CBIC, using databases and cooperation with various agencies to identify and retrieve assets.

India is grappling with the issue of 47,674 direct tax defaulters, each owing the government over Rs 5.91 lakh crore, who have been declared untraceable, Parliament learned on Tuesday.

When it comes to indirect taxes, as of January 31, 2025, a staggering 60,853 defaulters with dues amounting to Rs 43,525 crore are also untraceable. The challenge of tracking such significant sums has prompted detailed measures by the Ministry of Finance.

Pankaj Chaudhary, Minister of State for Finance, highlighted the initiatives by the Central Board of Direct Taxes (CBDT) to recover these dues. These measures include utilizing comprehensive databases to identify potential assets, along with the Central Board of Indirect Taxes and Customs' (CBIC) strategies employing collaboration with tax authorities and financial institutions for asset recovery.

(With inputs from agencies.)