The Central Board of Direct Taxes (CBDT) has reported a significant uptick in the number of Indian taxpayers disclosing foreign assets and income, following systematic use of global financial data shared under international tax cooperation frameworks.
The CBDT revealed on Friday that 2.31 lakh taxpayers declared their foreign holdings in the Income Tax Returns (ITR) for Assessment Year (AY) 2024-25, marking a substantial 45.17% increase compared to 1.59 lakh in AY 2023-24. The surge follows a data-driven compliance push powered by the Automatic Exchange of Information (AEOI) mechanism with over 100 tax jurisdictions, including Switzerland.
Global Tax Sharing Leads to ITR Revisions and New Filings
Under the AEOI framework, India has been receiving detailed annual financial data from participating countries since 2019. Based on this data, the CBDT identified discrepancies in several ITRs and prompted targeted action.
“As a result, 24,678 taxpayers revised their earlier ITRs while 5,483 filed belated returns for AY 2024-25,” the CBDT said. These revisions led to the disclosure of foreign assets worth ₹29,208 crore and foreign income of ₹1,089.88 crore.
To ensure greater compliance, the CBDT sent emails and SMS alerts to taxpayers who had not reported foreign holdings in the relevant ITR schedules, urging them to review and correct their filings.
Swiss Bank Data Under the Scanner
The statement comes in the wake of media reports highlighting increased deposits by Indian entities in Swiss banks. While acknowledging the reported rise, the CBDT clarified that such deposits include funds from enterprises, banks, and individuals and are subject to international scrutiny.
“Switzerland has been sharing financial data of Indian residents since 2018 under the AEOI protocol. This includes even those accounts suspected of financial irregularities,” the department noted.
Voluntary Compliance on the Rise
The CBDT attributed the positive trend in foreign asset disclosure to increased taxpayer awareness and a system-driven verification approach. “With the help of data analytics and proactive messaging, more individuals are voluntarily reviewing their ITRs and reporting offshore income,” the statement added.
The CBDT confirmed that non-compliant taxpayers are being dealt with as per the law, and actions such as surveys, open enquiries, and searches are being considered where necessary.
AEOI: A Strong Tool Against Offshore Tax Evasion
The success underscores the effectiveness of the AEOI system in tackling offshore tax evasion. Through this framework, India continues to receive financial information that strengthens tax enforcement and promotes transparent income reporting.
With global collaboration and domestic enforcement working hand-in-hand, the CBDT’s data-led drive is likely to keep offshore evasion in check and ensure greater income tax compliance among Indian residents with foreign interests.
