Income Tax Dept Has Identified Suspicious Entities that Sent Money Abroad, Launches Verification Drive; Know What to Do
The exercise covers about 394 entities and 36 professionals after officials found large foreign remittances with little or no reported turnover.
- On August 18, 2026, the Income Tax Department launched a nationwide verification exercise targeting "suspicious" foreign remittances, focusing on shell entities, the persons behind them, and professionals who issued Form 15CB certificates.
- Data analysis revealed entities with little or no reported business activity were remitting large amounts of foreign exchange abroad, often failing to match stated operational purposes like software imports or consulting services.
- The exercise covers approximately 394 entities, including 117 in land-border States, and 36 professionals. Officials raised concerns about whether adequate due diligence was carried out by Chartered Accountants before issuing Form 15CB certificates.
- Makhijani, Managing Partner at MGA, advised businesses to maintain robust commercial documentation. "Companies should there be extremely particular about their compliances in India," Makhijani said.
- Tax expert Jain advised responding promptly to notices to avoid full reassessment, as new forms are data-integrated for backend cross-verification, making mismatched filings easier to identify.
17 Articles
17 Articles
I-T dept launches nationwide drive against suspicious foreign remittances
The Income Tax Department has initiated a nationwide verification drive targeting suspicious foreign remittances made by entities with minimal business activity, including those in border districts, and is scrutinising the chartered accountants who issued the mandatory tax determination certificates.
Income Tax Dept investigates outward remittances; shell entities, CSR expenses under scanner
The Income Tax Department has uncovered 394 entities allegedly involved in suspicious foreign remittances, revealing discrepancies between declared turnovers and substantial money transfers abroad. A nationwide verification exercise is underway to investigate these entities.
Tax dept launches nationwide probe into suspicious foreign remittances
The verification exercise, launched on 18 August, covers 394 entities, including 117 entities located in land-border states, as well as 36 professionals who issued certificates for foreign remittances.
Income Tax Department launches nationwide crackdown on suspicious foreign remittances: What should taxpayers know?
The Income Tax Department launches a nationwide verification drive targeting entities involved in suspicious high-value foreign remittances, uncovering bogus transactions and inadequate due diligence by certifying accountants.
Income Tax Dept undertakes verification of suspicious foreign remittances
New Delhi, Aug 18: 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. An official said that based on ground intelligence and analysis of data on outward foreign remittances, the Income Tax Department has identified several suspi…
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