I-T unearths Rs 1.29 lakh cr foreign remittances

The Income Tax Department has discovered a staggering Rs 1.29 lakh crore in overseas remittances, involving 6,422 entities that have been flagged for further scrutiny. This revelation has put a spotlight on a vast network of companies and individuals suspected of utilizing cross-border transactions to move funds out of India. The probe has uncovered that a significant portion of the money was sent to a few key destinations, including Singapore, the UAE, Hong Kong, Mauritius, and China, which together accounted for 72.3% of the total remittances.

Singapore alone received Rs 41,885 crore, followed by the UAE with Rs 18,331 crore and Hong Kong with Rs 18,064 crore. A senior official stated that the probe is ongoing, and the full extent of the operation will become clearer in the coming days. The department of revenue is also closely monitoring the investigation. The probe has highlighted a concerning concentration of flows among entities with foreign addresses, with 83 such entities accounting for Rs 36,175 crore in remittances, prompting a closer examination of their ownership, business activity, and underlying transactions.

The pace of outward flows has been alarming, with Rs 43,048 crore being remitted overseas in the first half of FY26, already matching the full-year figure for FY25. This development comes at a time when the rupee remains under pressure, with the Reserve Bank of India regularly intervening in the foreign exchange market to contain volatility and prevent disorderly moves in the currency.

The investigation has brought renewed focus on the use of corporate structures and cross-border transactions to move funds out of India during a period of active dollar liquidity management and currency volatility by the central bank.