Recovery amount at Rs 338 crore: Govt raised tax demand of Rs 35,104 crore under foreign black money law over last 10 years

On the question of whether Indian-linked funds in Swiss banks surged more than three times the previous year’s amount, Chaudhary said there are some media reports based on Swiss National Bank (SNB) statistics which mention that Indian linked funds in Swiss banks have risen in 2024 as compared to previous year’s amount. However, Chaudhary, pointed out that as per Swiss authorities, the data in respect of SNB statistics includes, inter alia, amounts due in respect of customer deposits (including in foreign branches of Swiss Banks located in any country), other liabilities as well as amounts due to banks. “The Swiss authorities have also clarified that the SNB annual banking statistics should not be used for analysing deposits held by residents of India in Switzerland,” he said.

Indian money in Swiss banks more than tripled in 2024 to 3.5 billion Swiss francs (CHF), or approximately Rs 37,600 crore on the back of a huge jump in funds held through local branches and other financial institutions, news agency PTI had reported last month.

On the query to provide details of outstanding tax demand raised from the data shared with India via Automatic Exchange of Information under India-Switzerland tax agreement, the Minister said there is no centralised data for the specific query on country-wise undisclosed foreign income and the action taken. “Tax demand arising in cases of undisclosed foreign income or assets can pertain to multiple jurisdictions. Country-wise bifurcation of such demand is not maintained centrally,” Chaudhary said.

For details and status of enquiries conducted regarding Swiss holdings, the Minister said such enquiries are conducted on a case-by-case basis by the jurisdictional authorities. “Whenever any instance of tax evasion is detected, appropriate action under Direct Tax Laws, including searches, surveys, enquiries, assessment of income, levy of taxes, penalties, as well as filing of prosecution complaints in criminal courts, as may be applicable, is taken,” he said.

Replying to the question about the steps taken to recover unpaid taxes, penalties, or interest by Indian citizens or entities holding Swiss deposits, Chaudhary said the Income Tax Department has established a mechanism for recovery of demand that consists of outstanding tax, penalty and interest as per the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which apply to cases of undisclosed foreign income and assets in any country abroad. Such taxes, penalties and interest form part of the total tax liability of each assessee and is recovered in accordance with law, he said.