The Income Tax Department has launched a nationwide verification drive into suspicious foreign remittances, based on intelligence inputs and analysis of outward remittance data.
The scrutiny is focused on entities that reportedly show little or no business activity despite sending money abroad. The exercise will also cover individuals linked to these entities and chartered accountants who issued tax determination certificates for the transactions.
The department’s action follows the detection of a wider network of entities involved in questionable overseas transfers. Authorities are seeking to verify whether the transactions complied with tax and foreign exchange regulations and whether the required documentation was in place.
The nationwide exercise highlights the government’s growing focus on monitoring cross-border money flows, strengthening tax compliance and preventing potential misuse of foreign remittance channels.
