As per the ground intelligence and data analysis of outward foreign remittances, the income tax department had identified various suspicious entities that remitted large amounts of foreign exchange over the last 3 years.
A network of entities in the nation engaged in remitting funds abroad was revealed in a search operation targeting a group of fictitious charitable trusts involved in furnishing accommodation entries in exchange for fake donations/contributions.
Preliminary ground verification discovered that the entities making these remittances were either non-filers or were filing ITRs exhibiting very small turnovers. The turnover correlation is unclear with the large amounts of money being remitted abroad.
They did not seem to match the specified objectives of the remittances, such as payment for freight, import of software, or import of consulting services. The ground-level intelligence disclosed that these entities were not functioning from the addresses declared by them.
Additional analysis of the information shows that a large number of Form 15CB certificates were issued via a small group of professionals. A clustered group of entities also obtained the remitted funds.
Form 15CB, read with Rule 37BB of the Income-tax Rules, 1962 (corresponding to Form 146 read with Rule 220 of the Income-tax Rules, 2026), mandates the accountant certifying a foreign remittance to validate its taxability in accordance with the books of account and other related documents.
However, the findings raise concerns about whether sufficient due diligence was carried out by the accountants before issuing such certificates.
The department launched a detailed verification exercise on 18.08.2026. It checked these foreign remittances, concentrating on shell entities, people behind them, and the professionals who have issued Form 15CB certificates. In the exercise, approximately 394 entities (including 117 entities located in land-border States) and 36 professionals were covered.
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The department outlined that accountants issuing certificates in Form 15CB/Form 146 are anticipated to exercise due care, diligence and professional judgment. They need to analyse the underlying transactions and the pertinent facts before certifying the remittances, as these certificates have a crucial role in keeping trust in the system.
Currently, further investigations are in progress.
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