New Delhi, August 18: The Income Tax Department has launched a nationwide verification exercise into suspicious foreign remittances, covering approximately 394 entities, including 117 entities located in land-border states, and 36 professionals, according to a Central Board of Direct Taxes (CBDT) press release.
The exercise, launched on August 18, follows ground intelligence and analysis of data on outward foreign remittances that identified several suspicious entities which had remitted large amounts of foreign exchange over the past three years.
According to the department, a nationwide network of entities involved in remitting funds abroad was uncovered during a search operation on a group of fictitious charitable trusts allegedly providing accommodation entries against bogus donations and contributions.
Preliminary ground verification found that entities making the remittances were either non-filers or were filing income-tax returns showing very small turnovers. The department said the reported turnovers had no apparent correlation with the large sums remitted abroad and also did not appear consistent with the stated purposes of the remittances, including payments for freight and imports of software or consulting services.
Further ground-level intelligence indicated that these entities were not actually operating from the addresses declared by them, the department said.
Analysis also found that a large number of Form 15CB certificates had been issued by a relatively small group of professionals, while the remitted funds were received by a clustered group of entities.
The department said 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 books of account and other relevant documents. The findings have raised concerns over whether adequate due diligence was undertaken before the certificates were issued.
The nationwide verification exercise is focusing on the shell entities, the persons behind them and professionals who issued Form 15CB certificates. Entities located in districts along India’s land borders and remitting significant amounts abroad have also been included.
The Income Tax Department said accountants issuing certificates in Form 15CB/Form 146 are expected to exercise due care, diligence and professional judgment, and properly examine underlying transactions and relevant facts before certifying remittances.
Further investigation is underway.
