Nationwide Verification of Suspicious Foreign Remittances

On 19th August 2026, the Central Board of Direct Taxes (CBDT) stated that the Income Tax Department has launched a nationwide verification exercise into suspicious foreign remittances after identifying entities that allegedly transferred large amounts of foreign exchange despite reporting little or no turnover.

Key Points

Data Analysis: The exercise followed analysis of outward foreign remittance data and ground intelligence collected over the past three years.
Suspicious Entities: Several entities allegedly remitted large amounts abroad despite reporting very low turnover or filing no income-tax returns.
Questionable Payments: Remittances were reportedly shown as payments for freight, software imports and consulting services.
Address Verification: Ground-level intelligence found that some entities were allegedly not operating from their declared addresses.
Shell Entities: The exercise focuses on suspected shell entities, their controllers and professionals involved in certifying foreign remittances.