Summary of this article
Income Tax Department verifies 394 entities over suspicious foreign remittances.
Probe covers 117 border-state entities and 36 professionals.
Form 15CB certificates and overseas payment details face scrutiny.
Sending money abroad for a genuine business payment is a routine transaction. But what happens when a company sends large amounts overseas while its income tax returns show very little business?
That is the question the Income Tax Department is now examining.
On August 18, 2026, the department started a nationwide verification exercise into suspicious foreign remittances. The action follows an analysis of overseas payment data and ground-level information gathered during tax investigations.
How Did The Department Find These Transactions
The trail emerged during a search operation involving "fictitious charitable trusts" which were involved in providing accommodation entries against false donations and contributions.
The department then looked into foreign remittance data linked to entities connected with the network.
Some of these entities had either not filed income tax returns or had reported very small turnovers. At the same time, they had sent large amounts of money abroad.
This created a basic mismatch. The businesses were reporting little activity, but the money flowing out of India was much larger.
The stated reasons for some payments included freight, software imports and consulting services. Ground checks also found that some entities were not operating from the addresses listed in their records.
Why Are Accountants And Form 15CB Part Of The Exercise
The department found another common link while examining the data. "Further analysis of the data also revealed that a large number of Form 15CB certificates were issued by a relatively small group of professionals," stated the official release. The money sent abroad was also received by a clustered group of entities.
This has brought Form 15CB into focus.
Form 15CB is a certificate issued by an accountant for certain foreign remittances. It deals with the taxability of the payment being sent outside India.
In simple terms, before a payment is sent abroad (in cases where the certificate is required), the accountant goes through the transaction and relevant documents to determine how the payment should be taxed.
Under the Income-tax Rules, 1962, this process is linked to Rule 37BB. Under the Income-tax Rules, 2026, the corresponding provision is Form 146 under Rule 220.
What Is The Income Tax Department Checking
The department wants to establish whether the foreign remittances were backed by genuine transactions and whether the required checks were carried out before the certificates were issued.
This verification is especially focused on shell entities, the people behind them and professionals who issued Form 15CB certificates.
The exercise covers around 394 entities. Of these, 117 are located in states along India's land borders. It also covers 36 professionals.
The department has also highlighted entities in border districts that sent significant amounts of money abroad.
Does Being Selected Mean A Taxpayer Has Done Something Wrong
Not necessarily.
The department has launched a verification exercise, and further investigations are underway. Being covered by the exercise does not by itself establish that an entity or professional has violated tax laws.
The department is examining the transactions, the entities involved, the people behind them and the certificates issued for the remittances.
What Should Businesses Keep In Mind
Foreign remittances should be supported by documents that explain why the money is being sent abroad and how the payment has been treated for tax purposes.
The latest exercise also puts focus on the information provided in Form 15CB or the corresponding Form 146.
For businesses and professionals, the key requirement is that the transaction, supporting documents and tax treatment should match each other. Where the department finds gaps, it can scrutinise the transaction in more detail.
