India has raised tax and penalty demands amounting to over ₹35,105 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, but managed to recover only ₹338 crore so far, the Finance Ministry informed Parliament on Tuesday.
In a written reply to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said 1,021 assessments had been completed under the black money law till March 31, 2025. These assessments, aimed at curbing undisclosed foreign assets and income, have also led to 163 prosecution complaints.
“From July 1, 2015 to March 31, 2025, recovery to the tune of ₹338 crore has been made against tax, penalty, and interest demand raised under the Act,” Chaudhary stated.
The tax demands remain subject to the outcome of appeals pending before the Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal (ITAT), High Courts and the Supreme Court, he added.
The disclosure comes amid fresh questions about the rise in Indian-linked funds in Swiss banks, which according to some media reports citing Swiss National Bank (SNB) data, jumped to CHF 3.5 billion (about ₹37,600 crore) in 2024 — more than triple the previous year and the highest since 2021.
However, the government was quick to discredit this data as a reflection of black money held by Indians abroad. Chaudhary clarified that SNB statistics include a wide range of financial flows and liabilities, including inter-bank positions and deposits in foreign branches of Swiss banks, and should not be used to analyse deposits held by Indian residents in Switzerland.
AEOI framework and foreign data
The minister underlined that Switzerland has been sharing detailed financial information about Indian residents with Indian authorities since 2018 under the Automatic Exchange of Information (AEOI) framework. The first exchange occurred in 2019 and continues annually.
“India also receives information from more than 100 foreign jurisdictions. Whenever instances of tax evasion are detected, appropriate action under direct tax laws — including searches, surveys, assessments and prosecutions — is taken,” he said.
2015 compliance window: ₹2,476 crore collected
The Finance Ministry also recalled the one-time compliance window under the BMA in 2015, when 684 disclosures of undisclosed foreign assets worth ₹4,164 crore were made. The government collected ₹2,476 crore in taxes and penalties during this three-month period from July to September 2015.
Summary of Enforcement (2015–2025)
| Enforcement Metric | Figure |
| Assessments completed | 1,021 |
| Tax and penalty demand raised | ₹35,105 crore |
| Amount recovered | ₹338 crore |
| Prosecution complaints filed | 163 |
| Disclosures in 2015 compliance window | 684 |
| Assets disclosed under compliance window | ₹4,164 crore |
| Tax and penalty collected in 2015 | ₹2,476 crore |
While the numbers show the government’s intent to crack down on offshore tax evasion, the relatively low recovery points to the complex nature of enforcement, prolonged legal battles, and challenges in identifying and repatriating foreign-held assets.
Officials maintain that the government’s data-sharing agreements and international cooperation through AEOI are key tools in tracking hidden wealth abroad. However, the wide gap between demands and recoveries underscores the continued difficulty in translating legislative intent into tangible results.
