1 week ago
Income Tax Department Probes ₹30,000 Crore Foreign Remittances
India’s Income Tax Department is checking money sent by hundreds of companies and professionals to other countries.
The amount being examined is more than ₹30,000 crore.
Officials want to know whether the companies really performed the services they claimed.
Some companies reportedly had very little business or did not operate at their listed addresses.
Investigators are also checking who received the money and who owns those businesses.
Sending money abroad is not automatically illegal or suspicious.
However, false payments or hidden foreign assets could lead to tax action.
The department is also examining cases involving fictitious charitable trusts and alleged bogus donation entries.
The Income Tax Department is scrutinising 394 entities and 36 professionals over suspected irregularities in foreign remittances exceeding ₹30,000 crore.
Officials are checking whether the entities’ financial profiles and business activities justify the funds transferred overseas.
Most entities under scrutiny are reportedly shell companies based in Mauritius, the United Arab Emirates and Singapore.
Investigators are tracing recipients, ownership structures, stated transaction purposes and overseas holdings.
Entities or individuals linked to undisclosed foreign assets could face action under the Black Money Act and other tax laws.
- Who
- The Income Tax Department is examining 394 entities and 36 professionals.
- What
- The department is investigating suspected irregularities in foreign remittances exceeding ₹30,000 crore.
- Where
- The investigation concerns funds sent overseas, with entities reportedly based mainly in Mauritius, the United Arab Emirates and Singapore.
- When
- The remittances under scrutiny were made during the first half of FY26; departmental data covers FY26.
- Why
- Officials are assessing whether the remittances had genuine purposes and whether they involved undisclosed foreign assets or investments.
Key facts
- Entities under scrutiny
- 394 entities
- Professionals under scrutiny
- 36 professionals
- Remittances examined
- More than ₹30,000 crore
- Total FY26 outward remittances
- More than ₹1 lakh crore sent to over 5,000 overseas entities
- Reported entity locations
- Mauritius, the United Arab Emirates and Singapore
- Possible legal consequences
- Proceedings under India’s Black Money Act and other tax-related action
- Examples of stated purposes
- Freight payments, software imports and consulting services
Sources
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