NEW DELHI: The Finance Ministry on Friday said the Central Board of Direct Taxes (CBDT) has initiated action against individuals with foreign income and assets who have not responded to tax authorities, as part of its intensified crackdown on offshore tax evasion.
In a statement, the ministry said that following outreach efforts, 5,483 taxpayers filed belated returns for the assessment year 2024-25, declaring foreign assets worth Rs29,208 crore and additional foreign income of Rs 1,089.88 crore.
These filings came after the CBDT flagged mismatches between income tax returns (ITRs) and information received under the Automatic Exchange of Information (AEOI) framework.
The update comes amid concerns over a sharp rise in Indian funds parked in Swiss banks.
Swiss accounts
According to the Swiss central bank, Indian entities’ deposits more than tripled in 2024 to 3.5 billion Swiss francs (approximately Rs37,600 crore), driven largely by holdings through local branches and financial institutions.
The finance ministry clarified that CBDT reviewed ITRs of 24,678 taxpayers and launched targeted communication-through SMS and email – urging individuals to revisit their returns where foreign income or assets may not have been correctly declared.
The move appears to have prompted a substantial increase in compliance.
As per government data, 2.31 lakh taxpayers reported foreign income and assets in their ITRs for AY 2024-25, up 45.17 per cent from 1.59 lakh in the previous year.
The ministry said the review covered all jurisdictions, including Switzerland, and that suitable enforcement actions are under consideration for non-compliant taxpayers.
These may include statutory action, open inquiries, and even search and survey operations where necessary.
India currently receives financial account information from over 100 countries under global transparency agreements. Switzerland, in particular, has been sharing annual data on Indian residents since 2018, with the first exchange taking place in 2019.
CBDT continues to analyse this data systematically to identify discrepancies and ensure proper reporting, the statement added.
