Comptroller and Auditor General, CAG today said the government has a huge tax demand of 1.96 lakh crore rupees, of which 84 per cent cannot be realised due to various reasons like death, insolvency and liquidation of company.

The CAG report tabled in Parliament said even the huge tax arrears pending against Pune-based stud farm owner Hassan Ali Khan, his associate Chandrika Tapuriah, and late stock broker Harshad Mehta cannot be realized.

It said that 75 per cent of the total tax demands of 1.16 lakh crore rupees are pending against individuals. It pointed out that 12 individuals account for 90 per cent of the pending tax demand. Of these, Hassan Ali account for 43 per cent.

The report further said that 65,816.58 crore rupees of tax arrears are pending against corporate assessees.28 companies account for 37 per cent of the total tax arrears.

Talking to media in New Delhi , 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.