90% of I-T arrears owed by just 12 people: CAG
Moneylife Digital Team 17 December 2011

Hassan Ali Khan, with a tax arrear demand of Rs50,345.73 crore is followed by Chandrika Tapuriah, wife of his associate Kashi Nath Tapuriah, with an outstanding of Rs20,540.83 crore, while late stock broker Harshad Mehta owes Rs15,944.38 crore in arrears

New Delhi: The Comptroller and Auditor General of India (CAG) has said that 90% of the country’s income tax (I-T) arrears are owed by just a dozen individuals, led by Pune-based stud farm owner Hassan Ali Khan, reports PTI.

Government auditor CAG also noted in a report that these demands are “unrealisable 100%”.

Mr Khan, with a tax arrear demand of Rs50,345.73 crore is followed by Chandrika Tapuriah, wife of his associate Kashi Nath Tapuriah, with an outstanding of Rs20,540.83 crore, while late stock broker Harshad Mehta owes Rs15,944.38 crore in arrears.

“The demand against individuals is highly skewed, with 12 individuals (4.3% of the total cases) accounting for 90% of the arrear demand. One individual Hassan Ali Khan accounts for 43% of the total arrear demand...

Interestingly all of this demand is categorised as unrealisable," CAG said in the report tabled in Parliament.

Mr Khan, along with the Tapuriah couple, is embroiled in a number of cases ranging from money laundering, tax evasion and passport forgery which are being probed by various agencies like the Enforcement Directorate and Income Tax Department.

The government, in August this year, had also disclosed the names of the “top 10 individual defaulters” for Income Tax assessment year 2009-10.

Apart from Hassan Ali and Harshad Mehta, they included Kashinath Tapuriah (Rs602.80 crore), AD Narrotam (Rs5,781.86 crore), Hiten P Dalal (Rs4,200.04 crore), Jyoti H Mehta (Rs1,739.57 crore), Ashwin S Mehta (Rs1,595.51 crore), BC Dalal (Rs1,535.89 crore), S Ramaswamy (Rs1,122.48 crore) and Uday M Acharya (Rs683.22 crore).

CAG said the government has a huge tax demand of Rs1.96 lakh crore, of which 84% can’t be realised due to various reasons like death, insolvency and liquidation of company.

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