By buld_online 
The Income Tax Department’s data-matching initiative has prompted thousands of taxpayers to voluntarily disclose unreported offshore assets and foreign income, according to a statement released by the Ministry of Finance on Friday. The move comes amid growing scrutiny of foreign-held assets and follows the government’s push for transparency through international cooperation frameworks.
As many as 24,678 taxpayers reviewed their Income Tax Returns (ITRs) and 5,483 taxpayers filed belated returns for the Assessment Year 2024–25, reporting foreign assets worth a staggering ₹29,208 crore and additional foreign income of rs 1,089.88 crore. The disclosures were part of a system-driven verification exercise launched by the Central Board of Direct Taxes (CBDT), using data received under the Automatic Exchange of Information (AEOI) framework.
The Ministry’s statement came in response to media reports highlighting a significant increase in funds deposited by Indian entities in Swiss bank accounts. Clarifying the context, the government noted that such deposits span across categories, including individuals, banks, and corporate entities, and may not necessarily reflect undeclared income or tax evasion.
Indian deposits in Swiss banks soared over threefold in 2024, touching nearly Rs 37,600 crore (CHF 3.5 billion), according to data from the Swiss National Bank (SNB).
In its statement, the ministry said that the Indian government has been actively receiving annual financial data on Indian taxpayers from over 100 tax jurisdictions, including Switzerland, under multiple global information-sharing agreements. Notably, Switzerland has shared financial account data of Indian residents with Indian authorities since 2018 as part of the AEOI protocol. The first such automatic data exchange occurred in September 2019, and the process has continued annually since then.
The CBDT leverages this information to carry out targeted verifications. For AY 2024–25, the Board matched the foreign asset and income data received through AEOI with the disclosures made in taxpayers’ ITRs. Where discrepancies were found—especially in cases where foreign income or assets were not reported in the appropriate schedules—SMS and email alerts were sent to the concerned individuals, urging them to review and revise their filings.
The impact of this effort has been significant. In addition to the Rs 29,208 crore in foreign assets and Rs 1,089.88 crore in unreported income, the total number of taxpayers declaring foreign assets and income in ITRs for AY 2024–25 rose to 2.31 lakh, up 45.17% from 1.59 lakh in AY 2023–24.
“This rise indicates increased taxpayer awareness and growing compliance driven by our data-driven and systematic approach,” the Ministry noted. Officials also confirmed that enforcement actions, including searches, surveys, and other statutory steps, are being undertaken in cases where taxpayers remain non-compliant despite repeated outreach.
The government emphasized that this initiative is part of a broader strategy to curb offshore tax evasion and strengthen financial transparency. Taxpayers are now encouraged to proactively disclose foreign holdings and income, failing which legal consequences may follow.
Indian funds held in Swiss banks reaching approximately Rs 37,600 crore (CHF 3.5 billion) marks the highest level since 2021, when Indian funds had peaked at CHF 3.83 billion over a 14-year period.
However, the sharp rise was largely attributed to funds routed through local branches and financial institutions, rather than individual account holders. Direct customer deposits—typically reflecting individual Indian clients—rose just 11% to Rs 3,675 crore (CHF 346 million), accounting for only about 10% of the total Indian-linked funds.
The surge comes after a steep decline in 2023, when Indian holdings had plunged to a four-year low of CHF 1.04 billion—a nearly 70% drop from the previous year. These figures, based on official data submitted by banks to the SNB, exclude potential black money and assets held via entities registered in third countries.
(With agency inputs)