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Informist, Friday, Jun. 20, 2025

NEW DELHI – The Central Board of Direct Taxes clarified Friday that it verifies regularly offshore accounts of Indian residents, including those holding Swiss bank accounts, based on the annual information received from foreign countries and the income tax returns filed in India. The clarification comes after reports said that money held by Indian residents in Swiss banks jumped more than threefold in 2024 to about INR 370 billion. 

Media reports quoting Swiss National Bank data said the INR 370 billion held in Swiss banks includes all forms of funds from Indian clients, including individuals, enterprises and banks, along with figures from Swiss bank branches in India and non-deposit liabilities. The finance ministry said that Switzerland has been providing data on Indian residents under the Automatic Exchange of Information framework since 2018, even about those accounts suspected of involvement in financial irregularities.

"The Central Board of Direct Taxes regularly undertakes a systematic review of data so received and identifies taxpayers whose cases require further verification," the ministry said. "Such verification is carried out through different modes, including search and survey actions, open enquiries," it added. 

In assessment year 2024-25 (Apr-Mar), the CBDT compared the data shared under the Automatic Exchange of Information framework and income tax returns filed by taxpayers and asked many taxpayers to review their returns, where foreign assets and income were not reported. This led to voluntary disclosure of foreign wealth and income, with 30,161 taxpayers declaring offshore assets worth INR 292.08 billion and additional income of INR 10.90 billion as foreign income, the ministry said.

"Suitable action under the extant provision of law is under consideration for non-responsive taxpayers," the ministry said. "In cases of continued non-compliance, enforcement and statutory actions are being taken as per extant law," it added.  End

Reported by Priyasmita Dutta

Edited by Saji George Titus

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