Record foreign asset disclosures as govt steps up scrutiny: Finance ministry
New Delhi: The Union ministry of finance on Friday said it is intensifying scrutiny of foreign assets and income held by Indian residents, using global tax information-sharing frameworks.
This crackdown has caused a record number of taxpayers to disclose offshore holdings in their income tax filings for the assessment year (AY) 2024–25, it said in a statement.
The ministry said that the Central Board of Direct Taxes (CBDT) conducted a comprehensive comparison of financial data received from over 100 countries under the Automatic Exchange of Information (AEOI) mechanism with the foreign asset and income disclosures made in income tax returns (ITRs).
This exercise covered all major jurisdictions, including Switzerland.
In cases where discrepancies were detected—such as unreported or underreported offshore holdings—the tax department proactively reached out to taxpayers through SMS and emails, urging them to review and update their filings.
'As a result, a total of 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed their belated return for the AY24-25, reporting foreign assets valuing to ₹ 29,208 crores and additional income of ₹ 1,089.88 crores as foreign income,' the finance ministry said.
'Suitable action under the extant provision of law is under consideration for non-responsive taxpayers,' it added.
The ministry's announcement came in the backdrop of a PTI report citing data from the Swiss National Bank, which showed that Indian funds in Swiss banks more than tripled in 2024 to Swiss Franc (CHF) 3.5 billion (around ₹ 37,600 crore)—marking the highest level since 2021, when deposits peaked at CHF 3.83 billion.
The sharp rise was attributed largely to an increase in funds held through local branches and financial institutions. However, customer deposits—direct holdings by Indian clients—rose by a modest 11% to CHF 346 million ( ₹ 3,675 crore), accounting for only about one-tenth of the total.
This increase comes after a steep 70% plunge in Indian deposits in 2023, when the total fell to a four-year low of CHF 1.04 billion.
The government's data-driven enforcement has led to a surge in compliance.
A total of 231,000 taxpayers reported foreign assets and income in assessment year 2024–25, up 45.17% from 159,000 in the previous year, the ministry noted.
The government's intensified use of international data-sharing agreements, along with targeted outreach and enforcement, appears to be driving greater transparency and voluntary compliance among taxpayers with offshore assets. Enforcement actions are underway for those who continue to remain non-compliant, the ministry said.
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