India Unveils ₹29,208 Cr in Hidden Foreign Assets, ₹1,089.88 Cr in Unreported Income

India’s tax enforcement agencies have uncovered a record ₹29,208 crore in hidden foreign assets and ₹1,089.88 crore in unreported foreign income during the 2024–25 assessment year, according to the Central Board of Direct Taxes (CBDT). These figures emerged following a government-led compliance drive launched on November 17, 2024, which led to 30,161 taxpayers voluntarily disclosing the same amount of foreign assets and income. In addition, 5,483 taxpayers submitted belated returns, revealing previously unreported overseas holdings [1].

The number of taxpayers reporting foreign assets and income has surged to 2.31 lakh, a 45.17% increase compared to the previous year’s 1.59 lakh. The spike is attributed to both increased awareness and more rigorous enforcement actions. The government’s focus has expanded beyond conventional assets to include virtual digital assets (VDAs), particularly cryptocurrencies. Recent audits identified approximately ₹630 crore in unreported crypto-related earnings, prompting authorities to issue over 44,000 enforcement notices to suspected under-reporters [1].

Technology is playing a central role in these efforts. The CBDT is leveraging tools like the Non-Filer Monitoring System (NMS) and Project Insight, both of which use artificial intelligence to cross-check VDA transactions with tax filings. These systems enable rapid detection of discrepancies and reduce the scope for manipulation. The integration of AI into tax enforcement marks a significant shift toward data-driven governance [1].

The crackdown on unreported assets is part of a broader global trend aimed at closing loopholes in cross-border financial reporting. India’s adoption of the Common Reporting Standard (CRS) has enhanced its ability to monitor offshore holdings and ensure compliance with international norms. The recent disclosures in foreign assets and crypto income demonstrate the effectiveness of India’s dual approach—combining voluntary compliance incentives with robust enforcement mechanisms [1].

In a related development, a major crypto fraud case in Himachal Pradesh has drawn judicial scrutiny. The Himachal Pradesh High Court denied bail to Abishek Sharma, a key associate in a ₹2,000 crore (approximately $240 million) fraud that affected around 80,000 investors. Justice Sushil Kukreja emphasized the offense’s serious social implications. Abishek Sharma has been in custody since October 2023, while the primary accused is believed to have fled the country [1].

The combined efforts in tracking foreign assets and crypto earnings reflect India’s growing emphasis on financial transparency. As enforcement continues and public awareness deepens, further disclosures are likely, reinforcing the credibility of India’s tax reporting system [1].

Source: [1] India's Finance Ministry Uncovers ₹29208 Cr In Hidden ... (https://financefeeds.com/indias-finance-ministry-uncovers-%E2%82%B929208-cr-in-hidden-foreign-assets-%E2%82%B91089-cr-in-crypto-income-for-ay-2024-25/)