Tax dept launches nationwide probe into suspicious foreign remittances
The verification exercise, launched on 18 August, covers 394 entities, including 117 entities located in land-border states, as well as 36 professionals who issued certificates for foreign remittances.
The Income Tax Department in New Delhi has initiated a nationwide investigation into a suspected network of entities making large, potentially unexplained foreign remittances. Commissioner of Income Tax V. Rajitha stated that the department identified these 394 entities through ground intelligence and data analysis of foreign remittances over the past three years.
The preliminary findings revealed that the remittance amounts did not align with the entities' reported turnovers, and the stated purposes of some remittances, such as freight payments and software imports, did not match the ground verification. Additionally, some entities appeared to be operating from addresses different from those declared.
The investigation also targets professionals who certified these transactions, with data analysis showing a significant number of Form 15CB certificates issued by a limited group of chartered accountants. The verification process began on August 18 and is currently ongoing, focusing on both the entities making the remittances and the individuals certifying the transactions.
The move comes as the government seeks to tighten regulations for foreign contributions through the Foreign Contribution (Regulation) Amendment Bill, 2026.
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