Getting Foreign Funds? Get Ready IT Dept Is Watching!

The income tax department of India has been very progressive when it comes to incorporating technology with the tracking of financial transactions.

This was observed recently when the income tax department introduced a new software technology that would trace the financial transactions of individuals very quickly. This is extensively incorporated in the IT filing procedure that happens each year.

Now the IT department has made a pretty big announcement regarding the movement of foreign funds in India.

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.

The Department has emphasised the importance of exercising due diligence and sound judgment by professionals while issuing cerfiticates in Form 15CB/Form 146.

This comes shortly after there have been extensive allegations about foreign groups funding the recent Delhi students protest. Along with that, there are a lot of complaints about gambling companies pumping a lot of money in India through illegal means.

So this new step by the income tax department with regard to foreign money in circulation is going to be a crucial step up. This is not likely to affect Indian households who have family members abroad sending them money. This is more of a commercial crackdown on illegal money sources from abroad.