The exercise stems from a search operation on a group of fictitious charitable trusts involved in providing accommodation entries against bogus donations and contributions, which uncovered a nationwide network of entities remitting funds abroad. Preliminary ground verification found that these entities were either non-filers or filed income-tax returns showing very small turnovers, with no apparent correlation to the large sums remitted abroad. The stated purposes of the remittances, such as payment for freight, import of software or import of consulting services, also did not match. Further intelligence revealed that the entities were not actually operating from their declared addresses.
The Income Tax Department has launched a nationwide verification exercise into suspicious foreign remittances. The exercise follows data analysis and ground intelligence indicating significant overseas remittances by entities with little or no reported business activity.
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— Income Tax India (@IncomeTaxIndia) August 18, 2026
Analysis of the data further showed that a large number of Form 15CB certificates were issued by a relatively small group of professionals, while the remitted funds were received by a clustered group of entities. 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), requires the certifying accountant to verify the taxability of a remittance with reference to the books of account and other relevant documents. The findings have raised concerns over whether adequate due diligence was exercised by accountants before issuing these certificates.
The verification drive, launched on 18 August 2026, focuses on shell entities, the persons behind them, and the professionals who issued the Form 15CB certificates, including entities located in districts along the country’s land borders. The exercise has covered approximately 394 entities, of which 117 are located in land-border states, along with 36 professionals.
The Department has emphasised the importance of exercising due diligence and sound judgment by professionals while issuing certificates in Form 15CB/Form 146, adding that further investigations are currently underway.
