New Delhi: According to a report by Comptroller and Auditor General (CAG), over Rs 3 lakh crore in direct taxes, which is more than the annual corporate tax collection, is locked up in litigation at various levels.

The latest report by CAG also states that Rs 2.2 lakh crore of revenue was locked up in appeal cases with Commissioner of Income Tax (Appeals) in 2009-10 and the amount involved in litigation at the higher levels was Rs 91,087 crore.

"The amount locked up in appeal cases with CIT (A) was Rs 2.2 lakh crore in 2009-10,” said the report of Comptroller and Auditor General (CAG).

It added that Rs 2.2 lakh crore locked up in appeals with CIT (A) is equivalent to 66.9 per cent of the revised revenue deficit of Government of India.

The total amount locked up in such cases was about Rs 3.1 lakh crore, which was more than corporate tax collection of Rs 2.4 lakh crore and about two-and-half times the income tax  realisation of Rs 1.32 lakh crore in 2009-10.

As per the norms, each CIT (Appeal) is required to dispose of a minimum of 60 appeals per month and a total of 720 appeals annually.

During 2009-10, the CIT (A) was required to dispose of 2, 60,700 cases. Of this, only 0.8 lakh (30.6 per cent) were disposed of.

Big corporates avail bigger tax sops

More exemptions are available to bigger corporate, the Comptroller and Auditor General (CAG) has found.

As against the statutory 33.9 per cent, 179 top companies with profit before tax (PBT) of Rs 500 crore and above paid an effective tax rate of 22.1 per cent in 2008-09.

On the other hand, the effective rate for the companies upto PBT of only Rs one crore was more at 25.5 per cent.

"This shows that tax concessions are being availed of mainly by large companies," the CAG said in its latest report.

The tax exemptions themselves have increased by 150 per cent to Rs 1.20 lakh crore from Rs 48,168 crore in 2005-06, it said.