New Delhi: The Central Board of Direct Taxes on Friday said that it regularly receives detailed financial data under global tax cooperation frameworks, including the Automatic Exchange of Information (AEOI) with over 100 jurisdictions, including Switzerland, which it uses to verify ITRs filed by Indian taxpayers.
As a result, a total of 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed their belated return for the A.Y. 2024- 25, reporting foreign assets valued at Rs 29,208 crore and additional income of Rs 1,089.88 crore as foreign income. Suitable action under the extant provision of law is under consideration for non-responsive taxpayers.
The initiative has resulted in substantial growth of taxpayers reporting foreign assets and income in ITR for AY 2024-25. A total of 2.31 lakh taxpayers have reported their foreign assets and income in AY 2024-25, witnessing a growth of 45.17 per cent over 1.59 lakh taxpayers in AY 2023-24, the CBDT statement said.
Additionally, SMS and emails were sent to various taxpayers with a request to review their ITRs, where foreign assets and income were not reported in the appropriate Schedules of ITR.
The statement has been issued following some media reports that have suggested that money deposited in bank accounts of Indian entities in Switzerland has increased. It is reported that the data pertains to different types of funds, including deposits from enterprises, banks and individuals.
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 statement said.
As a part of these mechanisms, India regularly receives information about such foreign accounts and assets from 100+ tax jurisdictions. India also receives information about foreign assets and income being maintained in Switzerland, through different mechanisms of exchange of information.
It is further stated that Switzerland has been providing annual financial information about Indian residents since 2018 under the Automatic Exchange of Information (AEOI) framework. The first data transmission to Indian authorities occurred in September 2019, and the exchange has continued regularly since then, covering even those accounts suspected of involvement in financial irregularities.
The Central Board of Direct Taxes (CBDT) regularly undertakes a systematic review of data received and identifies taxpayers, whose cases require further verification. Such verification is carried out through different modes, including search and survey actions, open enquiries, the statement added.
It is noticed that on account of various awareness initiatives and a system-driven approach, taxpayers are voluntarily declaring their foreign assets and income and are also revisiting their ITRs to offer correct income, the statement added.
(IANS)
