As of January 31, 2025, a total of 1,08,527 tax defaulters have been declared untraceable, involving ₹5,90,652.49 crore in direct taxes and ₹43,524.91 crore in indirect taxes. To recover outstanding dues, the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) have implemented various enforcement measures. These include using financial databases for asset identification, monitoring arrear demand collection, setting recovery targets, and issuing guidelines for tax recovery officers. The CBIC also takes steps under the Customs Act, 1962, and the CGST Act, 2017, such as attaching bank accounts, coordinating with the Income Tax Department, and seeking information from financial intelligence agencies. Additional efforts involve collaborating with local authorities, tracking investments through NSDL and CDSL, and working with banks to freeze accounts and recover government dues. State revenue authorities are also involved in locating defaulters and their assets.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UN-STARRED QUESTION NO. 2771
ANSWERED ON- 25/03/2025
ACTION AGAINST UNTRACEABLE TAX DEFAULTERS
2771. SHRI VIVEK K. TANKHA:
Will the Minister of FINANCE be pleased to state:
(a) the number of cases where tax defaulters have been declared untraceable
(b) the total tax amount involved in such cases; and
(c) the specific enforcement measures taken by Government to trace and recover dues from these defaulters?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b): The number of cases where tax defaulters have been declared untraceable and tax amount involved are as follows:
| Number of assessees | Amount involved (Rs. In Cr.) | |
| Direct Taxes | 47,674 | 5,90,652.49 |
| Indirect Taxes | 60,853 | 43,524.91 |
| (as on 31/01/2025) | ||
(c) : The measures taken by Central Board of Direct Taxes to recover dues from the tax defaulters include the following:
(i) Making available databases like Individual Transaction Statement and 360- degree profile generated by the Department and those maintained by other agencies like FIU-IND to the field units for identification of assets for recovery.
(ii) Monitoring of efforts of the assessing officer to collect/recover the outstanding demand regularly by the superior authorities.
(iii) Monitoring the arrear demand collection/reduction in respect of top 5000 cases of arrear demand in all the jurisdictions.
(iv) Giving targets to field formations for annual cash collection and reduction of the
(v) Guidelines for Tax Recovery Officers for recovery and guidelines to field authorities for dealing with stay petitions have been issued.
The measures taken by Central Board of Indirect taxes to recover dues from the tax defaulters include the following:
(i) Steps are being taken under the provisions of Section 142 of Customs Act, 1962 and Chapters XV and XVI and other relevant sections of CGST Act, 2017, read with CBIC Circular No. 1081/02/2022-CX dated 19.01.2022 to trace and recover dues form these defaulters such as by coordinating with Income Tax Department and various banks, attachment of bank accounts of defaulters is done.
(ii) Information are being sought from Financial Intelligence Unit (FIU- IND) about these
(iii) Correspondences with the local authorities (viz. RTO/ Municipality/ Sub-Registrar/ Banks/ Electricity providers ) are being made for identification of the property and other details of the defaulters and also, placing alert in the EDI system for the recovery of arrears.
(iv) Letters are also being written to authorities like NSDL & CDSL, so that details of their investments could be obtained and recovery can be initiated.
(v) In cases, where PAN/ Bank Account details of the defaulters are identified, letters are being written to the Chief Compliance Officer/ Branch Manager of the banks so that Govt. dues could be recovered.
(vi) Co-ordination with State Revenue authorities is being done at Commissionerate/ Divisional level in all the cases of arrears where defaulters are not traceable.
