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Key Points

The Finance Ministry clarified India’s efforts to tackle offshore tax evasion through Swiss bank data sharing. Over 24,000 taxpayers revised returns, reporting Rs 29,208 crore in foreign assets. Disclosures rose by 45% due to government awareness campaigns. Enforcement actions are planned for non-compliant taxpayers.

Key Points: Finance Ministry Updates on Swiss Bank Deposits and Tax Evasion Crackdown

  • Swiss bank data shared with India since 2018 under AEOI
  • 24,678 taxpayers reviewed ITRs after CBDT alerts
  • Rs 29,208 crore foreign assets reported in belated filings
  • 45% rise in disclosures due to awareness campaigns
2 min read

Ministry of Finance addresses recent report on Swiss Bank Deposit

India's Finance Ministry details efforts to curb offshore tax evasion, revealing increased disclosures of foreign assets under AEOI with Switzerland.

"Tax jurisdictions cooperate to share financial asset details of citizens to combat offshore tax evasion - Ministry of Finance"

New Delhi, June 20

The Ministry of Finance on Friday addressed recent media reports concerning an increase in money deposited by Indian entities in Swiss bank accounts, providing an update on India's ongoing efforts to combat offshore tax evasion through international exchange of information.

"In this context, it is stated that in order to combat the problem of offshore tax evasion, tax jurisdictions cooperate among themselves and share relevant information about financial assets held by the citizens of other countries in their tax jurisdiction," the ministry of Finance said.

The ministry further added that, under the Automatic Exchange of Information (AEOI) framework, with Switzerland providing annual financial information to Indian authorities since 2018. The first data transmission occurred in September 2019 and has continued regularly, encompassing even accounts suspected of financial irregularities.

The Central Board of Direct Taxes (CBDT) regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification. Furthermore, such verification is carried out through different modes, including search and survey actions, open enquiries, etc.

For the Assessment Year (AY) 2024-25, the CBDT compared AEOI data with information about foreign assets and income reported by taxpayers in their Income Tax Returns (ITRs), covering all jurisdictions, including Switzerland. Furthermore, SMS and emails were dispatched to taxpayers who had not reported foreign assets and income in the appropriate ITR schedules, urging them to review their filings.

A total of 24,678 taxpayers reviewed their ITRs, and 5,483 taxpayers subsequently filed belated returns for AY 2024-25. These belated returns collectively reported foreign assets valued at Rs. 29,208 crores and additional foreign income of Rs. 1,089.88 crores. The Ministry stated that suitable action under existing law is being considered for non-responsive taxpayers.

The initiative has led to a substantial increase in taxpayers reporting foreign assets and income. For AY 2024-25, a total of 2.31 lakh taxpayers reported their foreign assets and income, marking a growth of 45.17 per cent compared to 1.59 lakh taxpayers in AY 2023-24.

The Ministry attributed this positive trend to various awareness initiatives and a system-driven approach, which are encouraging taxpayers to voluntarily declare their foreign assets and income and revise their ITRs to ensure accurate reporting. The government reiterated its commitment to taking enforcement and statutory actions as per extant law in cases of continued non-compliance.

- ANI

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Reader Comments

R
Rajesh K.
Good to see the government taking concrete steps against black money. The 45% increase in reporting foreign assets shows people are becoming more responsible. But Rs 29,208 crores is still a huge amount! Hope strict action is taken against those still hiding wealth abroad. 🇮🇳
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Priya M.
While the efforts are commendable, I wonder how much more is still hidden. Swiss banks have always been the favorite for tax evaders. The government should also focus on domestic tax reforms to reduce the temptation to stash money abroad in the first place.
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Amit S.
The SMS/email reminders are a smart move! Many people might have genuinely forgotten to declare foreign assets. This gentle nudge before punishment shows the government wants to give honest taxpayers a chance. Hope they recover every single rupee that belongs to our nation.
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Sunita R.
These numbers are shocking! ₹29,208 crores could build so many schools and hospitals. The government should name and shame these tax evaders - public pressure works better than fines sometimes. Also, what about money in other tax havens like Panama?
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Vikram J.
As a CA, I appreciate the system-driven approach. The AEOI framework is working well, but implementation needs more teeth. Many high-net-worth individuals use complex corporate structures to hide money. The tax department needs more forensic accountants to unravel these webs.
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Neha P.
The awareness campaigns are clearly working! More people are coming forward voluntarily. This is how we build a tax-compliant society. But I hope the recovered money is used transparently - maybe a public dashboard showing where these funds are being utilized?

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