India Tightens Net On Offshore Accounts; Enquiry Notices Seek ‘How And Where’ Accounts Were Disclosed

The Income Tax Department has issued enquiry notices to individuals across the country over foreign bank accounts, primarily located in the UK and European countries. The notices, sent under Section 131 of the Income Tax Act, seek explanations on “how and where” these accounts have been disclosed in tax filings.

The move follows information received under the Common Reporting Standards (CRS) through the Automatic Exchange of Information (AEOI) framework with foreign jurisdictions. So far, details of around 2.5 lakh Indian-linked foreign accounts have been shared with Indian tax authorities under CRS.

Officials said the notices span a wide range of individuals, including high-net-worth taxpayers, professionals, and business owners.

Cases where accounts are found to be undisclosed or falsely reported may invite strict action under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

The tax department’s ongoing compliance push highlights the growing use of global data-sharing agreements to crack down on offshore tax evasion.

Through the CRS and Automatic Exchange of Information, Indian tax authorities now have unprecedented access to foreign financial data — making it much harder for individuals to hide offshore wealth.