Improve in Tax Declarations Linked to CBDT’s Swiss Account Scrutiny, ETCFO
The Central Board of Direct Taxes on Friday mentioned that it usually receives detailed monetary information beneath international tax cooperation frameworks, together with the Automated Alternate of Info (AEOI) with over 100 jurisdictions, together with Switzerland, which it makes use of to confirm ITRs filed by Indian taxpayers.
Because of this, a complete of 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed their belated return for the A.Y. 2024- 25, reporting overseas property valued at Rs 29,208 crore and extra earnings of Rs 1,089.88 crore as overseas earnings. Appropriate motion beneath the extant provision of regulation is into consideration for non-responsive taxpayers.
The initiative has resulted in substantial development of taxpayers reporting overseas property and earnings in ITR for AY 2024-25. A complete of two.31 lakh taxpayers have reported their overseas property and earnings in AY 2024-25, witnessing a development of 45.17 per cent over 1.59 lakh taxpayers in AY 2023-24, the CBDT assertion mentioned.
Moreover, SMS and emails had been despatched to numerous taxpayers with a request to assessment their ITRs, the place overseas property and earnings weren’t reported within the applicable Schedules of ITR.
The assertion has been issued following some media experiences which have steered that cash deposited in financial institution accounts of Indian entities in Switzerland has elevated. It’s reported that the information pertains to several types of funds, together with deposits from enterprises, banks and people.
On this context, it’s acknowledged that with a purpose to fight the issue of offshore tax evasion, tax jurisdictions cooperate amongst themselves and share related details about monetary property held by the residents of different international locations of their tax jurisdiction, the assertion mentioned.
As part of these mechanisms, India usually receives details about such overseas accounts and property from 100+ tax jurisdictions. India additionally receives details about overseas property and earnings being maintained in Switzerland, by means of completely different mechanisms of trade of knowledge.
It’s additional acknowledged that Switzerland has been offering annual monetary details about Indian residents since 2018 beneath the Automated Alternate of Info (AEOI) framework. The primary information transmission to Indian authorities occurred in September 2019, and the trade has continued usually since then, protecting even these accounts suspected of involvement in monetary irregularities.
The Central Board of Direct Taxes (CBDT) usually undertakes a scientific assessment of knowledge obtained and identifies taxpayers, whose instances require additional verification. Such verification is carried out by means of completely different modes, together with search and survey actions, open enquiries, the assertion added.
It’s seen that on account of assorted consciousness initiatives and a system-driven strategy, taxpayers are voluntarily declaring their overseas property and earnings and are additionally revisiting their ITRs to supply appropriate earnings, the assertion added.
