Income Tax Department Launches Nationwide Verification of Suspicious Foreign Remittances, Covers 394 Entities and 36 Professionals
New Delhi, August 18, 2026:
The Income Tax Department has launched a nationwide verification exercise to investigate suspicious foreign remittances after identifying several entities that allegedly transferred large amounts of money abroad despite reporting very low business turnover or failing to file income tax returns. The exercise aims to examine the transactions, identify the people behind the entities and assess whether the professionals involved in certifying the remittances followed the required rules and due diligence procedures.
The action follows an analysis of financial data and ground-level intelligence gathered by the Department. Investigators identified several entities that had remitted substantial amounts of foreign exchange over the past three years. Preliminary findings raised concerns because the amounts transferred abroad appeared inconsistent with the entities’ declared business activities, financial records and reported income.
The investigation gained momentum after a search operation involving a group of fictitious charitable trusts allegedly engaged in providing accommodation entries against bogus donations and contributions. During the operation, the Department uncovered a wider network of entities suspected of facilitating the transfer of funds overseas.
According to preliminary verification, several entities involved in these remittances were either not filing income tax returns or were declaring very low turnover. The financial figures reported by these entities did not appear to justify the substantial sums being transferred abroad. Investigators also found apparent inconsistencies between the amounts remitted and the stated purposes of the transactions, which included payments for freight, software imports and consulting services.
Further ground-level inquiries raised additional concerns about the authenticity of the businesses. Some entities were reportedly not operating from the addresses registered with the authorities, prompting questions about their actual business activities and the identities of the people controlling them.
The Department’s analysis also revealed a concentration of Form 15CB certificates among a relatively small group of professionals. At the same time, the funds transferred overseas appeared to be received by a clustered group of entities. These patterns prompted officials to examine whether the transactions were genuine and whether the required checks had been properly carried out before the remittances were certified.
Form 15CB, read with Rule 37BB of the Income-tax Rules, 1962, requires an accountant certifying a foreign remittance to examine its taxability with reference to the books of account and other relevant documents. Under the corresponding provisions of the Income-tax Rules, 2026, Form 146 is read with Rule 220. The Department’s findings have raised questions about whether adequate verification and professional due diligence were undertaken before the certificates were issued.
The nationwide verification exercise was launched on August 18, 2026, with a particular focus on suspected shell entities, the individuals operating behind them and the professionals who issued the relevant certificates. The exercise also covers entities located in districts along India’s land borders that have remitted significant amounts of money abroad.
So far, the Department has covered 394 entities, including 117 entities located in land-border states, along with 36 professionals. The verification is intended to establish the nature of the transactions, examine supporting documents and determine whether the remittances comply with applicable tax requirements.
The Income Tax Department has stressed that accountants issuing Form 15CB or Form 146 certificates must exercise due care, professional judgment and diligence. They are expected to examine the underlying transactions, verify relevant documents and assess the applicable tax provisions before certifying foreign remittances.
The Department has emphasised that such certifications play an important role in maintaining transparency and trust in the financial system. Any shortcomings in the verification process could raise concerns about compliance with tax laws and the integrity of cross-border financial transactions.
The investigation remains ongoing, and further action will depend on the findings of the verification exercise. The Department has reiterated the importance of accurate reporting, genuine business documentation and professional accountability in transactions involving the transfer of funds outside India.
The announcement was made by V. Rajitha, Commissioner of Income Tax (Media & Technical Policy) and Official Spokesperson for the Central Board of Direct Taxes (CBDT).
News Source: Central Board of Direct Taxes (CBDT) – Official Press Release
