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India Gazette
7 hours ago
- Business
- India Gazette
Ministry of Finance addresses recent report on Swiss Bank Deposit
New Delhi [India], June 20 (ANI): The Ministry of Finance on Friday addressed recent media reports concerning an increase in money deposited by Indian entities in Swiss bank accounts, providing an update on India's ongoing efforts to combat offshore tax evasion through international exchange of information. 'In this context, it is stated that in order to combat the problem of 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,' the ministry of Finance said. The ministry further added that, under the Automatic Exchange of Information (AEOI) framework, with Switzerland providing annual financial information to Indian authorities since 2018. The first data transmission occurred in September 2019 and has continued regularly, encompassing even accounts suspected of financial irregularities. The Central Board of Direct Taxes (CBDT) regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification. Furthermore, such verification is carried out through different modes, including search and survey actions, open enquiries, etc. For the Assessment Year (AY) 2024-25, the CBDT compared AEOI data with information about foreign assets and income reported by taxpayers in their Income Tax Returns (ITRs), covering all jurisdictions, including Switzerland. Furthermore, SMS and emails were dispatched to taxpayers who had not reported foreign assets and income in the appropriate ITR schedules, urging them to review their filings. A total of 24,678 taxpayers reviewed their ITRs, and 5,483 taxpayers subsequently filed belated returns for AY 2024-25. These belated returns collectively reported foreign assets valued at Rs. 29,208 crores and additional foreign income of Rs. 1,089.88 crores. The Ministry stated that suitable action under existing law is being considered for non-responsive taxpayers. The initiative has led to a substantial increase in taxpayers reporting foreign assets and income. For AY 2024-25, a total of 2.31 lakh taxpayers reported their foreign assets and income, marking a growth of 45.17 per cent compared to 1.59 lakh taxpayers in AY 2023-24. The Ministry attributed this positive trend to various awareness initiatives and a system-driven approach, which are encouraging taxpayers to voluntarily declare their foreign assets and income and revise their ITRs to ensure accurate reporting. The government reiterated its commitment to taking enforcement and statutory actions as per extant law in cases of continued non-compliance. (ANI)
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Business Standard
8 hours ago
- Business
- Business Standard
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.
Mint
9 hours ago
- Business
- Mint
Record foreign asset disclosures as govt steps up scrutiny: Finance ministry
New Delhi: The Union ministry of finance on Friday said it is intensifying scrutiny of foreign assets and income held by Indian residents, using global tax information-sharing frameworks. This crackdown has caused a record number of taxpayers to disclose offshore holdings in their income tax filings for the assessment year (AY) 2024–25, it said in a statement. The ministry said that the Central Board of Direct Taxes (CBDT) conducted a comprehensive comparison of financial data received from over 100 countries under the Automatic Exchange of Information (AEOI) mechanism with the foreign asset and income disclosures made in income tax returns (ITRs). This exercise covered all major jurisdictions, including Switzerland. In cases where discrepancies were detected—such as unreported or underreported offshore holdings—the tax department proactively reached out to taxpayers through SMS and emails, urging them to review and update their filings. 'As a result, a total of 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed their belated return for the AY24-25, reporting foreign assets valuing to ₹ 29,208 crores and additional income of ₹ 1,089.88 crores as foreign income,' the finance ministry said. 'Suitable action under the extant provision of law is under consideration for non-responsive taxpayers,' it added. The ministry's announcement came in the backdrop of a PTI report citing data from the Swiss National Bank, which showed that Indian funds in Swiss banks more than tripled in 2024 to Swiss Franc (CHF) 3.5 billion (around ₹ 37,600 crore)—marking the highest level since 2021, when deposits peaked at CHF 3.83 billion. The sharp rise was attributed largely to an increase in funds held through local branches and financial institutions. However, customer deposits—direct holdings by Indian clients—rose by a modest 11% to CHF 346 million ( ₹ 3,675 crore), accounting for only about one-tenth of the total. This increase comes after a steep 70% plunge in Indian deposits in 2023, when the total fell to a four-year low of CHF 1.04 billion. The government's data-driven enforcement has led to a surge in compliance. A total of 231,000 taxpayers reported foreign assets and income in assessment year 2024–25, up 45.17% from 159,000 in the previous year, the ministry noted. The government's intensified use of international data-sharing agreements, along with targeted outreach and enforcement, appears to be driving greater transparency and voluntary compliance among taxpayers with offshore assets. Enforcement actions are underway for those who continue to remain non-compliant, the ministry said.
New Indian Express
11 hours ago
- Business
- New Indian Express
Centre keeping close watch as Indian funds in Swiss banks triple to Rs 38,000 crore
Amid reports that Indian funds in Swiss banks tripled to Rs 38,000 crore in 2024, the Centre said it is closely monitoring possible tax evasion, leveraging various information exchange mechanisms with Switzerland on foreign assets and income. In a statement issued on Friday, the finance ministry said that India regularly receives information about such foreign accounts and assets from 100+ tax jurisdictions, including Switzerland. It further said that Switzerland has been providing annual financial information about Indian residents since 2018 under the Automatic Exchange of Information (AEOI) framework. The first data transmission to Indian authorities occurred in September 2019, and the exchange has continued regularly since then, covering even those accounts suspected of involvement in financial irregularities. According to a Swiss National Bank report, money parked by Indians in Swiss banks more than tripled in 2024, reaching 3.54 billion Swiss francs, or Rs 37,600 crore. Elaborating the mechanism to check tax evasion, the finance ministry has said that the tax department regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification.
New Indian Express
11 hours ago
- Business
- New Indian Express
Centre flags possible tax evasion as Indian funds in Swiss banks triple to Rs 38,000 crore
Amid reports that Indian funds in Swiss banks tripled to Rs 38,000 crore in 2024, the Centre said it is closely monitoring possible tax evasion, leveraging various information exchange mechanisms with Switzerland on foreign assets and income. In a statement issued on Friday, the finance ministry said that India regularly receives information about such foreign accounts and assets from 100+ tax jurisdictions, including Switzerland. It further said that Switzerland has been providing annual financial information about Indian residents since 2018 under the Automatic Exchange of Information (AEOI) framework. The first data transmission to Indian authorities occurred in September 2019, and the exchange has continued regularly since then, covering even those accounts suspected of involvement in financial irregularities. According to a Swiss National Bank report, money parked by Indians in Swiss banks more than tripled in 2024, reaching 3.54 billion Swiss francs, or Rs 37,600 crore. Elaborating the mechanism to check tax evasion, the finance ministry has said that the tax department regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification.
