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 the professionals who issued Form 15CB certificates.
- Data analysis and ground intelligence revealed entities with little to no reported business activity were remitting large amounts of foreign exchange abroad, often failing to match stated purposes like software imports or consulting services.
- The exercise covers approximately 394 entities, including 117 in land-border States, and 36 professionals. Officials flagged concerns about whether adequate due diligence was performed by Chartered Accountants before issuing Form 15CB certificates.
- Makhijani, Managing Partner at MGA, noted businesses should maintain robust commercial documentation, as the Income Tax Department increasingly relies on data analytics to identify inconsistencies in tax filings and remittance records.
- Tax expert Aarjav Jain advises businesses to respond promptly to notices to avoid full reassessment, warning that new Forms 145 and 146 are data-integrated for backend cross-verification, making filing mismatches easier to detect.
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Income Tax Department Launches Nationwide Verification of Suspicious Foreign Remittances
Get latest articles and stories on Business at LatestLY. The Income Tax Department has launched a nationwide verification exercise into suspicious foreign remittances after identifying several entities that allegedly remitted large amounts of foreign exchange despite reporting little or no turnover, the Central Board of Direct Taxes (CBDT) said. Business News | Income Tax Department Launches Nationwide Verification of Suspicious Foreign Remittan…
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.
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