The income tax department is taking action against non-compliant people having foreign income, the finance ministry on Friday said, adding that as many as 5,483 taxpayers have filed belated returns reporting foreign assets worth Rs 29,208 crore.
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 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.
“In cases of continued non-compliance, enforcement and statutory actions are being taken as per extant law,” the ministry said. 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 ministry said.
The initiative has resulted in substantial growth of taxpayers reporting foreign assets and income in ITR for AY25, it said, adding that a total of 231,000 taxpayers have reported their foreign assets and income in AY25, witnessing a growth of 45.17% from 159,000 taxpayers in AY24.
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 AY25, 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.
