Tax department initiates verification of suspicious foreign remittances
This story was originally published at 18:11 IST on 18 August 2026
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NEW DELHI – In order to curb "suspicious" foreign remittances, the income tax department Tuesday launched a nationwide detailed verification exercise. These verifications will focus on shell entities, the persons behind them, and the professionals who have issued Form 15CB certificates, a press release from the finance ministry said.
Based on ground intelligence and analysis of data on outward foreign remittances, the income tax department has identified several suspicious entities that remitted large amounts of foreign exchange over the last three years, according to the press release.
"Further analysis of the data also revealed that a large number of Form 15CB certificates were issued by a relatively small group of professionals. The remitted funds were also received by a clustered group of entities. Form 15CB, read with Rule 37BB of the Income-tax Rules, 1962, requires the accountant certifying a foreign remittance to verify its taxability with reference to the books of account and other relevant documents," the ministry said.
Entities located near India's land borders and remitting significant amounts of money abroad have also been covered in the exercise, the government said. "The exercise has covered approximately 394 entities and 36 professionals," it added.
The tax department said further investigations are underway. It emphasised that "accountants issuing certificates in Form 15CB/Form 146 are expected to exercise due care, diligence and professional judgment. They should properly examine the underlying transactions and relevant facts before certifying the remittances, as these certifications play an important role in maintaining trust in the system." End
Reported by Sagar Sen
Edited by Himanshi Gupta
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