The Income Tax Department on Thursday expressed difficulty in recovering Rs 74,000 crore tax claims from Pune-based stud-farm owner Hasan Ali Khan, saying he does not have enough assets.
"Hasan Ali does not have enough assets to meet the tax liability," an I-T department official said.
Khan, who is accused of stashed huge funds in tax havens, was taken into custody by the Enforcement Directorate on March 17 and later sent to a Mumbai jail.
The 53-year-old businessman is suffering from diabetes and various other ailments.
He was also arrested in 2008 and faces criminal charges under the Passport Act for allegedly obtaining six passports from different parts of India, but was given bail in January 2009.
The department which has been given a tax collection target of Rs 5.32 lakh crore for this fiscal, is facing a huge challenge to recover tax arrears estimated at Rs 2.02 lakh crore.
"About 1.95 lakh crore is difficult to recover," the official said.
On Wednesday, the government had set up a committee to suggest ways to trace chronic tax defaulters, reveal their identity to the public and recover taxes.
Meanwhile, a top revenue official said the direct tax collection target for 2011-12 is achievable.
"I don't think so," he said when asked if tax collection could be impacted in the backdrop of likely moderation in the economic growth.