3 days ago
India Probes Suspicious Outward Remittances Exceeding Rs 30,000 Crore
The tax department is checking large payments sent from India to other countries.
It is looking at about 394 entities and some accountants who certified the payments.
The payments may have been described as business expenses, but officials said some were difficult to verify.
Some people who sent money had not filed tax returns or reported businesses too small for the amounts transferred.
Media reports citing government sources put the total under examination above Rs 30,000 crore.
Several transactions were linked to places such as Mauritius, the United Arab Emirates, and Singapore.
The government uses banks and other agencies to track cross-border money.
People who sent money legally should keep their bills, contracts, and other proof.
They should also report foreign assets and answer tax notices.
The Income Tax Department began a nationwide verification exercise on August 18, 2026, covering about 394 entities and 36 certifying professionals.
Government sources cited in media reports estimated that the remittances under examination exceeded Rs 30,000 crore over three years.
Investigators found some remitters were non-filers or reported turnover inconsistent with payments described as freight, software imports, or consulting services.
India’s private transfer receipts reached $155.12 billion in 2025-26, while outward remittances under the Liberalised Remittance Scheme totaled $28.98 billion.
Authorities advise remitters to retain invoices and contracts, reconcile bank records with tax statements, disclose foreign assets, and respond to notices.
- Who
- The Income Tax Department is examining about 394 entities and 36 professionals who issued Form 15CB certificates; other agencies involved in oversight include the Reserve Bank of India, Financial Intelligence Unit–India, and Directorate of Enforcement.
- What
- A nationwide verification exercise into suspicious outward foreign remittances made over the preceding three years.
- Where
- The exercise is nationwide in India and includes 117 entities located in land-border states; some transactions were linked to Mauritius, the United Arab Emirates, and Singapore.
- When
- The exercise began on August 18, 2026, and covers transactions from approximately the previous three years.
- Why
- The department found possible mismatches between remitted amounts, tax filings, reported turnover, and the stated purposes of payments, raising concerns about undisclosed income and foreign assets.
Key facts
- Entities under examination
- About 394 entities, including 117 in land-border states.
- Professionals examined
- 36 professionals who issued Form 15CB certificates for the transactions.
- Estimated remittances
- More than Rs 30,000 crore, according to media reports citing government sources.
- Private transfer receipts
- $155.12 billion in 2025-26, up from $135.43 billion in 2024-25, according to the Reserve Bank of India.
- Outward remittances under the Liberalised Remittance Scheme
- $28.98 billion in 2025-26, compared with $29.56 billion in 2024-25.
- Annual individual remittance limit
- The Liberalised Remittance Scheme permits resident individuals to remit up to $250,000 a year.
- Compliance advice
- Keep invoices, contracts, and proof of purchase; reconcile the Annual Information Statement with bank withdrawals and disclose foreign assets.
Sources
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