The income tax department has identified 89 "high-risk foreign remittance" cases with suspected tax evasion of over Rs 100 crore each.
Filtered through data analytics, these cases pertain to high-value remittances in FY20 and FY21, people aware of the details said.
The department has already initiated proceedings in these cases. The Central Board of Direct Taxes (CBDT), the apex direct taxes body, asked relevant assessing officers to initiate verification and send notices to these red-flagged transactions in an internal instruction on March 28.
"The data analytics suggested that there are 89 cases where suspected evasion is above 100 crore and another 31 cases where suspected evasion is above ₹50 crore," said one official.
The official added that, in these cases, the income declared by the assessee was not proportionate to the money sent abroad. Also, the tax returns did not reflect these high value overseas transfers.
The official said the actual number could be greater, as the department has identified a substantially high number of discrepancies in form 15CC for FY20 and FY21. More cases could be taken up after a second round of scrutiny. These cases have been made visible to jurisdictional TDS (tax deducted at source) officers (international tax) under the Foreign Remittance Verification (Form 15CC) category on the verification module of the department’s Insight Portal.
Currently, 5% tax collected at source (TCS) is applicable on certain foreign outward remittances exceeding ₹7 lakh, a measure to ensure these transactions are captured in the system and analysed to unearth tax evasion.
Under sub-section (6) of section 195 of the Income-Tax Act, a person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, is required to furnish the information relating to the payment of such a sum in Form 15CC.
This form has to be submitted every quarter.
"Technology and data analytics are helping us in detecting evasions and helping us to plug any loopholes and improve tax compliance," the official added.
This year the budget proposed that any outward remittances for purposes other than medical treatment and education will incur 20% TCS on the entire value effective July 1.
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