Income Tax Department: The Income Tax Department has identified several business families who allegedly failed to disclose foreign assets or sources of income from abroad in their tax returns. These include business families from major cities such as Ahmedabad, Surat, Chennai, and Hyderabad.
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Income Tax Department: The Income Tax Department is tightening its grip on business families. The department has identified several business families who allegedly failed to disclose foreign assets or sources of income from abroad in their tax returns. Notices are planned to be sent to these families in the coming months, officials said.
Business families identified from these cities
These business families are based in Ahmedabad, Surat, Chennai, Hyderabad, Bengaluru, and Mumbai. An Income Tax official said, “The foreign assets owned by these families are valued at thousands of crores. Income Tax Department officials are gathering data to arrive at concrete figures. Investigations are also underway at the CBDT’s nodal office in Delhi.” He added that action will be initiated once evidence is obtained, and notices will be sent to these families.
Information about foreign assets has been received from other countries.
He said, “The IT Department receives data on foreign assets and foreign bank accounts from other countries. This helps us estimate the actual tax liability of individuals and companies.” In a November 27 press release, the IT Department stated that the Central Board of Direct Taxes (CBDT) had identified high-risk cases in its analysis of the Automatic Exchange of Information (AEOI) for AY 2024-25, where foreign assets are present but their details have not been disclosed in the ITR filed for AY 2025-26.
AEOI Framework Helps in Detecting Foreign Assets
AEOI is a framework developed by OECD countries to prevent tax evasion. A Common Reporting Standard (CRS) has been developed under this framework. Under this, financial institutions in the “source” jurisdiction collect data and send it to their tax authorities. This data pertains to account holders in other countries. This information is sent annually to the residents’ “home country.”
The IT Department has seen positive results from its NUDGE campaign.
The IT Department launched the NUDGE campaign in 2024. It targeted taxpayers who had received information from foreign jurisdictions under the AEOI. This information included information about foreign assets that were not disclosed in their income tax returns for AY 2024-25. This effort yielded positive results. 24,678 taxpayers were forced to revise their returns and disclose foreign assets worth approximately ₹29,208 crore.
Preparations to send notices to business families in the coming months
Officials said the Income Tax Department is now preparing to send notices to business families as part of a news campaign. One person explained that many Indian families have financial links abroad. This includes things like inheritance, former jobs, or family arrangements. These assets are not disclosed in tax returns.
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