The Income Tax Department has launched a drive to verify “suspicious” foreign remittances and stated, “The Income Tax Department has launched a nationwide verification exercise into suspicious foreign remittances. The exercise follows data analysis and ground intelligence indicating significant overseas remittances by entities with little or no reported business activity. The Department has emphasised the importance of exercising due diligence and sound judgement by professionals while issuing cerfiticates in Form 15CB/Form 146.”
Entities located in districts along India’s land borders and remitting significant amounts of money abroad have also been covered in the exercise. The exercise has covered approximately 394 entities (including 117 entities located in land-border states), and 36 professionals, the department said in a post on X.
Further analysis of the data also reflected that a large number of Form 15CB certificates were issued by a relatively small group of professionals as stated by the Income Tax Department. “The remitted funds were also received by a clustered group of entities. Form 15CB, read with Rule 37BB of the Income-tax Rules, 1962 (corresponding to Form 146 read with Rule 220 of the Income-tax Rules, 2026), requires the Accountant certifying a foreign remittance to verify its taxability with reference to the books of account and other relevant documents. The findings have raised concerns over whether adequate due diligence was conducted before issuing these certificates.
The I-T Department’s nationwide detailed verification exercise will verify these foreign remittances, focus on shell entities, the people behind them, and the professionals who have issued Form 15CB certificates. The Department emphasises that accountants issuing certificates in Form 15CB/Form 146 are expected to exercise due care, diligence and professional judgement. They should properly examine the underlying transactions and relevant facts before certifying the remittances, as these certifications play an important role in maintaining trust in the system.
Income Tax Department Flags Suspicious Foreign Remittances, Overseas Transfers Under Scanner
