New Delhi: All those medical and educational institutes, who have been shying away from the taxes under the garb of registering themselves as charitable or social trust or even not being recognized at all now stand under the lens of the government as the 2010-11 Budget is about to be launched.

The government has been asked to bring all these institutions under tax net.

The ASSOCHAM, in a representation sent to the finance minister Mr. Pranab Mukherjee has accorded to classify such educational and medical institutes and bring them under tax net.

According to the representation sent by the ASSOCHAM, most of these institutions are running on commercial basis, thus making surplus profits do not contribute to tax.

Arguing that these commercial institutions do not contribute to the taxes despite of making huge profits, the traders body have recommended to bring them under one umbrella of tax payers and also utilize in a scientific manner the bank account data and PAN so as to identify the individuals which are to be brought under the tax net.

The report suggested that, "This can be initially started as a pilot project in metropolitan cities like Mumbai, Delhi, Chennai and Kolkata, as it needs a much focused strategy to be followed."

Coming closer to the heels of the Budget 2010-11, the strategy is to convert the black money into white and widen the tax net.

A study by National Institute of Public Finance and Policy more than two decades ago had put the figure on estimates of quantum of black money generated in a year somewhere between 40-50% of national income.