I-T uncovers Rs 1.29 lakh cr overseas remittances trail; money sent to China, UAE & more
The Indian Income Tax Department has uncovered a massive overseas remittance network involving 6,422 new entities that transferred Rs 1.29 lakh crore abroad, with a significant portion going to Singapore, UAE, Hong Kong, Mauritius, and China. This probe has led to actions against 394 firms and is ongoing, raising concerns about the rupee's pressure and the use of corporate structures for cross-border transactions.
Why it matters
This investigation highlights significant financial irregularities and potential illicit fund flows, impacting India's economy, currency stability, and regulatory oversight, potentially leading to broader economic and legal consequences.
Income Tax crackdown: The Income Tax Department has uncovered a large overseas remittance network that involves as many as 6,422 new entities. These companies collectively transferred Rs 1.29 lakh crore abroad. The findings have already led to action against 394 firms, while a broader set of companies and individuals is now under scrutiny, according to people familiar with the investigation.The probe comes as the rupee remains under significant pressure. The Reserve Bank of India has been regularly selling dollars in the foreign exchange market to contain volatility and prevent sharp, disorderly movements in the currency.What I-T department crackdown foundInvestigators found that a significant share of the funds was routed to a small group of overseas destinations. Singapore, the UAE, Hong Kong, Mauritius and China together received 72.3% of the total remittances.
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