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Informist, Tuesday, Aug. 5, 2025

 

NEW DELHI – The government had tax arrears to the tune of a whopping INR 54.54 trillion till June, the finance ministry said Tuesday. Of the total, an amount of INR 47.52 trillion is under direct taxes and the rest under indirect taxes, Minister of State for Finance Pankaj Chaudhary said in a written response to the Rajya Sabha. 

 

Chaudhary said of the pending direct tax arrears, an amount of INR 31.26 trillion is locked up in litigation till the end of March. In the case of the pending indirect tax arrears of INR 7.02 trillion, INR 3.71 trillion are stuck in various stages of litigation till March.

 

For reference, the total arrears translate to more than 15% of India's GDP estimate for the financial year 2025-26 (Apr-Mar). The amount is also 28% higher than the total tax the government aims to collect in FY26, which is to the tune of INR 42.70 trillion.

 

The total number of direct tax cases stuck in litigation till March is 55,054, with 25,428 corporate tax cases accounting for INR 18.71 trillion. The remaining 29,626 cases are non-corporate tax cases and account for INR 16.77 trillion stuck in litigation.

 

For indirect taxes, of the 4,160 cases stuck in litigation, 2,501 relate to corporations and involve INR 1.71 trillion. There are 1,261 individual cases involving INR 521.79 billion stuck in litigation. A total of 398 public-sector cases involving INR 431.22 billion are also stuck.

 

According to Chaudhary, of the direct tax arrears of INR 47.52 trillion, an amount of INR 35.48 trillion is pending in matters where the arrears are higher than INR 100 million. In the case of indirect tax, matters involving arrears of more than INR 100 million account for INR 2.67 trillion of the total amount of arrears.  End

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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