New Delhi, August 18, 2026 (Yes Punjab News)
The Income Tax Department has launched a nationwide verification exercise into suspected irregularities in foreign remittances after data analysis and ground-level intelligence flagged large overseas transfers by entities with little or no reported business activity over the past three years.
The exercise is examining shell entities, individuals linked to them and professionals who issued Form 15CB certificates for foreign remittances. Entities operating in districts along India’s land borders and transferring substantial amounts abroad are also under scrutiny.
According to the Income Tax Department, the verification covers around 394 entities, including 117 entities in states bordering other countries, as well as 36 professionals.
The department said the exercise follows the discovery of a nationwide network of entities involved in overseas fund transfers during a search operation targeting a group of fictitious charitable trusts allegedly engaged in providing accommodation entries against bogus donations.
Preliminary ground verification found that several entities involved in the remittances were either non-filers or had declared very low turnover in their income tax returns. Officials found no apparent correlation between their reported business activity and the large amounts sent overseas.
The stated purposes of some remittances, including payments for freight, software imports and consulting services, also did not appear consistent with the financial profiles of the entities, the department said. Further field intelligence indicated that some of these entities were not operating from their declared addresses.
Data analysis also showed that a relatively small group of professionals had issued a large number of Form 15CB certificates, while the funds were being received by a clustered group of overseas entities.
Form 15CB requires an accountant certifying a foreign remittance to examine its taxability with reference to the books of account and other relevant documents. The department said the findings have raised questions about whether adequate due diligence was undertaken before some certificates were issued.
The Income Tax Department stressed that professionals must carefully examine underlying transactions and relevant facts before certifying foreign remittances, as such certifications are important to maintaining the integrity and credibility of the tax system.
The department said further investigation into the suspected transactions and entities is underway.
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