Last Updated:June 21, 2025, 10:10 IST
The Finance Ministry addresses reports on Indian deposits in Swiss banks, highlighting efforts to curb offshore tax evasion via international cooperation and data sharing.
To combat the problem of offshore tax evasion, tax jurisdictions cooperate among themselves and share relevant information about financial assets held by the citizens of other countries in their tax jurisdiction, says the finance ministry.
The Ministry of Finance has clarified recent media reports regarding a rise in deposits by Indian entities in Swiss bank accounts, highlighting the government’s ongoing efforts to curb offshore tax evasion through international cooperation and data sharing.
In a statement, the ministry said India has been receiving annual financial account information from Switzerland under the Automatic Exchange of Information (AEOI) framework since 2018, with the first data exchange taking place in September 2019. The data shared includes details even on accounts suspected of financial irregularities.
“In this context, it is stated that in order to combat the problem of offshore tax evasion, tax jurisdictions cooperate among themselves and share relevant information about financial assets held by the citizens of other countries in their tax jurisdiction,” the finance ministry said.
The Central Board of Direct Taxes (CBDT) regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification. Such verification is carried out through different modes, including search and survey actions, open enquiries, etc, it added.
“For AY 2024-25, CBDT compared the data shared under AEOI with the information about foreign assets and income filed in the ITRs by the taxpayers, for the purpose of verification. The analysis covered all jurisdictions, including Switzerland. Additionally, SMS and Emails were sent to various taxpayers with a request to review their ITRs, where foreign assets and income were not reported in the appropriate Schedules of ITR,” it added.
Following this, 24,678 taxpayers reviewed their ITRs, and 5,483 filed belated returns, disclosing foreign assets worth Rs 29,208 crore and additional foreign income of ₹1,089.88 crore. The ministry said appropriate legal action is being considered against those who failed to respond.
The initiative has significantly boosted compliance. For AY 2024-25, 2.31 lakh taxpayers reported foreign assets and income, a sharp 45.17% rise compared to 1.59 lakh in AY 2023-24.
The Finance Ministry attributed the improvement to increased awareness and a data-driven compliance strategy, and reiterated its commitment to pursuing enforcement against non-compliant taxpayers under existing laws.
“It is further stated that Switzerland has been providing annual financial information about Indian residents since 2018 under the Automatic Exchange of Information (AEOI) framework. The first data transmission to Indian authorities occurred in September 2019, and the exchange has continued regularly since then, covering even those accounts suspected of involvement in financial irregularities,” the ministry said.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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