The CBDT analyzed the income tax returns (ITRs) of 24,678 taxpayers suspected of concealing foreign assets and income. Following targeted outreach through SMS and emails urging corrective measures, 5,483 taxpayers submitted late returns for the assessment year 2024–25, collectively declaring foreign assets amounting to ₹29,208 crore and foreign income of ₹1,089.88 crore, according to a press release from the Finance Ministry.
The examination relied on financial data received from overseas jurisdictions under the AEOI structure, where countries share detailed financial information about foreign residents. Switzerland, a crucial partner in this effort, has been supplying annual data regarding Indian account holders since 2018, beginning its first data transmission in 2019. These reports cover accounts that are even suspected of financial discrepancies.
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“For AY 2024-25, the CBDT compared the data provided under AEOI with the foreign assets and income reported in the ITRs by taxpayers for verification purposes. The review spanned all jurisdictions, including Switzerland. Moreover, SMS and emails were dispatched to various taxpayers requesting them to reassess their ITRs where foreign assets and income were not disclosed in the relevant Schedules,” the press release stated.
It further noted that “as a result, 24,678 taxpayers reassessed their ITRs, and 5,483 taxpayers submitted their late returns for AY 2024-25, disclosing foreign assets valued at ₹29,208 crores and additional income of ₹1,089.88 crores as foreign income. Appropriate action, as per existing laws, is under consideration for non-compliant taxpayers.”
“This initiative has led to a significant increase in the number of taxpayers reporting foreign assets and income in ITR for AY 2024-25. A total of 2.31 lakh taxpayers have reported their foreign assets and income this assessment year, showing a growth of 45.17% compared to 1.59 lakh taxpayers in AY 2023-24,” the press release stated.
“It was also mentioned that Switzerland has consistently provided annual financial information concerning Indian residents since 2018 under the AEOI framework. The initial data transfer to Indian authorities took place in September 2019, and this exchange has been maintained regularly, also covering accounts suspected of financial irregularities,” the statement added.
The Central Board of Direct Taxes (CBDT) routinely conducts a systematic review of the received data to identify taxpayers whose cases necessitate further scrutiny. This verification is performed through various methods, including search and survey operations, open inquiries, and more.
The tax department confirmed that enforcement actions are actively in progress against non-compliant taxpayers. These actions encompass investigations through searches, surveys, and open inquiries.
The CBDT further clarified that while media coverage has drawn attention to an uptick in deposits by Indian entities in Swiss banks, these figures encompass a broad spectrum of deposits—including those from businesses, financial institutions, and individuals—and do not necessarily represent unaccounted wealth. Authorities stressed that India’s tax enforcement is based on verified data exchanged under international agreements, rather than solely on deposit trends.
The board underscored that growing awareness, transparency measures, and system-induced alerts have fostered increased voluntary compliance among taxpayers in declaring foreign income and assets.
“Taxpayers are revisiting their returns and making necessary disclosures. This indicates an improved compliance culture and showcases the effectiveness of the department’s integrated approach,” a senior official remarked.
This crackdown highlights the government’s steadfast commitment to combating offshore tax evasion and ensuring transparency in foreign asset disclosures under prevailing tax legislation.
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