CBDT acts against non-filers with foreign income, assets worth ₹29,000 cr

Finance Ministry on Friday said CBDT is taking action against people having foreign income and as many as 5,483 taxpayers have filed belated returns reporting foreign assets worth Rs 29,208 crore and additional income of Rs 1,089.88 crore.
Suitable action under the extant provision of law is under consideration for non-responsive taxpayers, the finance ministry said in a statement.
The finance ministry's statement comes amid reports that money deposited in bank accounts of Indian entities in Switzerland has increased in 2024.
Indian money parked in Swiss banks more than tripled in 2024 to 3.5 billion Swiss francs (nearly Rs 37,600 crore) on the back of a huge jump in funds held through local branches and other financial institutions, annual data released by Switzerland's central bank showed on Thursday.
The ministry statement said that a total of 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed their belated return for the assessment year (AY) 2024-25, reporting foreign assets of Rs 29,208 crore and additional foreign income of Rs 1,089.88 crore.
The initiative has resulted in substantial growth of taxpayers reporting foreign assets and income in ITR for AY 2024-25, it said, adding that a total of 2.31 lakh taxpayers have reported their foreign assets and income in AY 2024-25, witnessing a growth of 45.17 per cent over 1.59 lakh taxpayers in AY 2023-24.
On account of various awareness initiatives and a system-driven approach, taxpayers are voluntarily declaring their foreign assets and income and are also revisiting their ITRs to offer correct income, it said.
In cases of continued non-compliance, the statement said, enforcement and statutory actions are being taken as per the law.
For AY 2024-25, it said, the Central Board of Direct Taxes (CBDT) compared the data shared under Automatic Exchange of Information (AEOI) with the information about foreign assets and income filed in the ITRs by the taxpayers, for the purpose of verification.
The analysis covered all jurisdictions, including Switzerland, it said, adding that additionally, SMS and emails were sent to various taxpayers with a request to review their ITRs, where foreign assets and income were not reported in the appropriate Schedules of ITR.
In order to combat offshore tax evasion, tax jurisdictions cooperate among themselves and share relevant information about financial assets held by the citizens of other countries in their tax jurisdiction. India regularly receives information about foreign accounts and assets from more than 100 tax jurisdictions.
Additionally, India receives information about foreign assets and income being maintained in Switzerland, through different mechanisms of exchange of information, the finance ministry statement said.
It is further stated that Switzerland has been providing annual financial information about Indian residents since 2018 under the AEOI framework.
The first data transmission to Indian authorities took place in September 2019, and the exchange has continued regularly since then, it said.
The CBDT regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification, it said.
Such verification is carried out through different modes, including search and survey actions, open inquiries, etc, it added.

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