Comptroller and Auditor General of India, CAG, has said that 54 per cent of total direct tax collection amounting to 2.29 lakh crore rupees has not been collected in 2009-10.

Talking to media on the report of Recovery of Arrears of Tax in New Delhi today, Deputy CAG, Mr. J. N. Gupta said that direct tax collecting amounting to 4.35 lakh crore rupees accounted for the three-fourth of the revenue receipts for the year 2009-10.

He said the arrears of demand also registered a steep hike in the last five years.

The CAG recommended that the Department may ensure preparation of a robust and reliable data base of arrear demand by reconciling the data maintained by different wings of the department, towards effective monitoring and follow up of arrears.

He also recommended that the provision of adjustments of arrear demand while granting refund should strictly be followed.

CAG said the system may provide for fixing responsibility in such cases.