IT Dept Probes Suspected Bogus Foreign Remittances
Nationwide investigation targets shell entities, fake trusts and professionals over suspicious overseas fund transfers
- Income Tax Department launches nationwide verification of 394 entities
- Probe focuses on suspected bogus foreign remittances through shell firms and fake trusts
- 36 professionals under scrutiny for issuing large numbers of Form 15CB certificates
- Investigation aims to curb misuse of foreign remittance channels
GG News Bureau
New Delhi, 19th Aug: The Income Tax Department has launched a nationwide investigation into suspicious outward foreign remittances after intelligence inputs and data analysis revealed that several entities had transferred large sums abroad over the past three years through allegedly dubious transactions.
According to the department, preliminary investigations uncovered a network of fictitious charitable trusts and shell entities that allegedly remitted funds overseas under the guise of bogus donations and other fabricated business transactions. Many of these entities were either non-filers or had declared minimal turnover despite sending substantial amounts abroad.
Officials said the stated purpose of several remittances—including payments for freight, software imports and consultancy services—did not match the actual nature of the transactions. Further verification also found that many entities were not operating from their declared business addresses.
The investigation has also brought 36 professionals under scrutiny for issuing a large number of Form 15CB certificates, which certify the taxability of foreign remittances. Authorities observed that a small group of professionals had issued these certificates for multiple entities, raising concerns over compliance and due diligence.
On August 18, the department initiated a comprehensive verification drive covering 394 entities, including 117 located in land-border states, to identify the individuals behind the suspected operations and examine the role of professionals involved.
The Income Tax Department said accountants issuing Form 15CB certificates are expected to exercise due diligence by carefully verifying the facts and transactions before certifying remittances. It stressed that such certifications are critical to maintaining the integrity of India’s tax and foreign remittance framework.
Officials said investigations are continuing to ensure compliance with tax laws and prevent the misuse of overseas remittance channels.
