Income Tax Department Probes 394 Firms, 36 Professionals Over Suspicious ₹30,000 Crore Foreign Remittances
· Free Press Journal
The Income Tax Department is scrutinising 394 entities and 36 professionals over suspected irregularities in foreign remittances exceeding ₹30,000 crore during the first half of FY26, government sources said. Officials are examining whether the financial profiles and business activities of the entities justify the amounts transferred overseas.
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According to a report by Moneycontrol, most of the entities under scrutiny are allegedly shell companies based in Mauritius, the UAE and Singapore. Around 5% are reportedly linked to major Indian business groups. The department is tracing the recipients of the funds and examining their ownership structures.
The investigation follows data analysis and ground intelligence covering outward remittances. According to departmental data, more than ₹1 lakh crore was remitted to over 5,000 overseas entities during FY26.
Income Tax Department Seeks Clarity In International Tax Rules As Cross-Border Transactions Grow More ComplexOfficials stressed that sending money abroad is not inherently suspicious. Instead, investigators are assessing whether the stated purpose and underlying transactions are genuine. In some cases, companies reportedly declared activities such as freight payments, software imports and consulting services despite having limited turnover or unrelated business operations.
Shell entities and undisclosed assets under lens
The department also found cases where entities allegedly did not operate from their declared addresses. A recent search operation uncovered a network involving fictitious charitable trusts that allegedly facilitated bogus donation entries.
Tax experts said legitimate transactions could also be caught during such scrutiny, as banks conduct the initial checks on outward remittances. However, investigators are expected to examine the source and purpose of funds, financial records and overseas holdings in greater detail.
If the probe establishes that remittances were used to acquire undisclosed foreign assets or investments, the entities or individuals involved could face proceedings under India's Black Money Act, apart from other tax-related action.