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New Delhi, August 18, 2026: Income Tax Department has launched a nationwide verification exercise into suspicious foreign remittances after identifying entities that allegedly sent large amounts of money overseas despite reporting little or no business activity.
Exercise follows an analysis of outward foreign-remittance data and ground-level intelligence gathered by the Department. According to the Central Board of Direct Taxes (CBDT), several entities were found to have remitted significant amounts of foreign exchange over the past three years while either not filing income-tax returns or reporting only very small turnovers. Department said the reported business activity did not appear to match the amounts being sent abroad.
Mismatch between turnover and overseas payments
Entities under scrutiny reportedly described the remittances as payments for activities including freight, software imports and consulting services.
However, preliminary verification found that some of the entities were not operating from the addresses declared by them, the CBDT said. Investigation also followed a search operation involving a group of fictitious charitable trusts allegedly engaged in providing accommodation entries against bogus donations and contributions.
Further analysis of the data identified a relatively small group of professionals who had issued a large number of Form 15CB certificates. Remittances were also found to have been received by a clustered group of entities, according to the Department.
Accountants' role under scrutiny
Form 15CB is used in the process of certifying the tax implications of certain foreign remittances. CBDT said accountants issuing such certificates are required to examine the taxability of a remittance with reference to the books of account and other relevant documents.
Department said its findings have raised questions about whether adequate due diligence was carried out before some of the certificates were issued. Under the Income-tax Rules, 2026, the corresponding certification is referred to as Form 146, read with Rule 220.
CBDT has stressed that professionals issuing Form 15CB/Form 146 must exercise due care, diligence and professional judgment and properly examine the underlying transactions before certifying them.
394 entities and 36 professionals covered
Nationwide verification exercise began on August 18.
Department said it is focusing on:
- Entities suspected of being shell entities
- People associated with or controlling such entities
- Professionals who issued Form 15CB certificates
- Large foreign remittances that appear inconsistent with reported business activity
- Entities located in districts along India's land borders that have remitted significant amounts overseas
Approximately 394 entities, including 117 entities located in States along India's land borders, and 36 professionals have been covered in the exercise, the CBDT said.
Why the exercise matters
Foreign remittances are a legitimate part of international business, including payments for imports, services and other genuine transactions. Income Tax Department's action is focused on cases where the size or stated purpose of the remittance appears inconsistent with the entity's reported financial activity.
Scrutiny of professionals is also significant because certificates issued by qualified accountants form part of the compliance framework for certain foreign-remittance transactions. Department said proper verification by professionals is important to maintain confidence in the tax system.
Investigation continues
CBDT said further investigations are underway. Latest exercise does not mean that every entity or professional covered has been found guilty of wrongdoing. Verification process is intended to establish the facts behind the suspicious transactions and identify any violations of tax or other applicable laws.
Keywords
Income Tax Department, suspicious foreign remittances, CBDT, Form 15CB, Form 146, overseas payments, tax compliance, Income Tax, Foreign Income, Citizen News Puttur,