The Income Tax Department has initiated a nationwide verification exercise into suspicious foreign remittances, following data analysis and ground-level intelligence indicating significant overseas fund transfers by entities reporting little or no corresponding business activity.
According to the Department, the verification exercise is aimed at examining transactions involving potentially unusual or unexplained foreign remittances and assessing whether the reported financial activities are consistent with the underlying business operations of the concerned entities.
The Department has also highlighted the need for due diligence and sound professional judgment by professionals while issuing certificates in Form 15CB/Form 146. Professionals involved in certifying foreign remittance transactions are expected to exercise appropriate care and verify the relevant facts before issuing such certificates.
The nationwide exercise underscores the Income Tax Department’s continued focus on monitoring foreign remittances, cross-border transactions and potentially suspicious financial activities, particularly where the reported business profile does not appear consistent with the volume or nature of overseas remittances. CASansaar