Indian Government may be able to identify an estimate of black money floating in its economy by end September.

As per The Economic Times report : “The government does not have an estimate of quantum of black money existing in the country. However, based on the recommendations of the Standing Committee on the Finance, the government has commissioned a study by three national-level institutes,” minister of state for finance S S Palanimanickam said in a written reply to the Lok Sabha.

These three institutes — National Institute of Public Finance and Policy, National Institute of Financial Management, National Council for Applied Economic Research — have been asked to estimate the quantum of unaccounted income or wealth inside and outside the country and its ramifications on national security, he said.

“The study is expected to be completed by September, 2012,” he added.

Finance minister Pranab Mukherjee has already indicated that the government will bring out a white paper on black money this session.

Since April, 2009 the Income Tax department has seized undisclosed assets worth Rs 2,644.08 crore domestically, Palanimanickam said.

However, unaccounted income detected in the period was over Rs 45,000 crore through invasive actions. The assets seized are adjusted against the tax demand raised consequent to finalisation of the assessment proceedings, he said.

He said whenever credible information about connivance or involvement of officers or agencies in generation of black money is noticed, it is communicated to the relevant authorities to take appropriate action in accordance with the law.

In another reply, Palanimanickam said recovery of outstanding arrears is an on going process.

So far as recovery of outstanding arrears pertaining to direct taxes is concerned, he said, the dues of Rs 1 crore and above are regularly monitored at a senior level in the Income Tax Department through the mechanism of dossiers to ensure expeditious recovery.

The I-T department recovered Rs 21,791 crore tax arrear during 2011-12 while it was Rs 7,583.90 crore in case of indirect taxes as per the provisional data, he said.