An income tax verification exercise has been carried out throughout India to check instances of suspicious foreign remittances. It has been found after analysis that there are certain entities which have remitted huge foreign exchange outside India in the last three years. However, these entities are not maintaining consistent income and business records.

As per a press release made by the Central Board of Direct Taxes (CBDT), a nexus of entities has been unearthed that was allegedly providing false entries to make donations and contributions through charitable trusts. In the initial investigations, it came to light that most of these remitting entities were either not declaring their income tax returns or they had declared very low turnovers even when they had transferred huge amounts abroad.

The Income Tax Department stated that these entities had mentioned the purpose of foreign remittances as freight charges, software importation, or consultancy charges, but investigations on the ground level showed that these statements were not true in most cases. Some entities could not even be traced from the declared addresses.

The investigation also revealed that a large number of Form 15CB certificates were issued by a limited number of professionals. Form 15CB is a certificate issued by chartered accountants before sending funds abroad. The Income Tax Department suspects that in some cases, the necessary due diligence and due diligence were not followed.

Under this verification campaign, which began on August 18, 2026, the department has so far investigated approximately 394 entities and 36 professionals. Of these, 117 entities are located in states bordering the country. The Income Tax Department is also investigating the role of shell companies, their operators, and the professionals who issued Form 15CB.

The CBDT stated that professionals involved in the issuance of Form 15CB and Form 15CA certificates should exercise utmost caution, due diligence, and professional responsibility. The department clarified that further investigation is underway and necessary action will be taken.

An income tax verification exercise has been carried out throughout India to check instances of suspicious foreign remittances. It has been found after analysis that there are certain entities which have remitted huge foreign exchange outside India in the last three years. However, these entities are not maintaining consistent income and business records.

As per a press release made by the Central Board of Direct Taxes (CBDT), a nexus of entities has been unearthed that was allegedly providing false entries to make donations and contributions through charitable trusts. In the initial investigations, it came to light that most of these remitting entities were either not declaring their income tax returns or they had declared very low turnovers even when they had transferred huge amounts abroad.

The Income Tax Department stated that these entities had mentioned the purpose of foreign remittances as freight charges, software importation, or consultancy charges, but investigations on the ground level showed that these statements were not true in most cases. Some entities could not even be traced from the declared addresses.

The investigation also revealed that a large number of Form 15CB certificates were issued by a limited number of professionals. Form 15CB is a certificate issued by chartered accountants before sending funds abroad. The Income Tax Department suspects that in some cases, the necessary due diligence and due diligence were not followed.

Under this verification campaign, which began on August 18, 2026, the department has so far investigated approximately 394 entities and 36 professionals. Of these, 117 entities are located in states bordering the country. The Income Tax Department is also investigating the role of shell companies, their operators, and the professionals who issued Form 15CB.

The CBDT stated that professionals involved in the issuance of Form 15CB and Form 15CA certificates should exercise utmost caution, due diligence, and professional responsibility. The department clarified that further investigation is underway and necessary action will be taken.