Summary: The Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, on 18th August 2026 announced a nationwide detailed verification exercise concerning suspicious foreign remittances identified through ground intelligence and data analysis. The Income Tax Department identified entities that had remitted substantial foreign exchange over the preceding three years despite being non-filers or reporting very small turnovers that did not appear to correspond with the amounts remitted. The stated purposes of remittances included freight payments, software imports and consulting services, while ground-level verification also indicated that some entities were not operating from their declared addresses.
The Department also identified a concentration of Form 15CB certificates among a relatively small group of professionals. Under the source material, 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 foreign remittance with reference to books of account and relevant documents.
The verification exercise covers approximately 394 entities, including 117 entities located in land-border States, and 36 professionals. The Department has emphasised due care, diligence and professional judgment in issuing Form 15CB/Form 146 certificates. Further investigations are underway.
CBDT Identifies Suspicious Foreign Remittance Patterns
The Department stated that its analysis of outward foreign remittance data, supported by ground intelligence, identified several suspicious entities involved in significant foreign exchange remittances during the last three years.
The entities identified during the exercise were found, according to the preliminary ground verification described in the press release, to include non-filers and entities reporting very small turnovers. The reported turnovers did not appear to correlate with the large amounts remitted abroad.
The stated purposes of the remittances included:
- payment for freight;
- import of software; and
- import of consulting services.
Ground-level intelligence further indicated that the entities concerned were not actually operating from their declared addresses.
Verification of Form 15CB and Form 146 Certifications
The Department’s data analysis also identified a relatively small group of professionals who had issued a large number of Form 15CB certificates.
The source material states that 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 Accountant certifying a foreign remittance to verify its taxability with reference to the books of account and other relevant documents.
The findings have therefore raised concerns regarding whether adequate due diligence was undertaken before these certificates were issued.
TaxGuru’s existing guidance on Form 15CA and Form 15CB provides background on the foreign-remittance certification framework.
Nationwide Verification Exercise from 18 August 2026
The Income Tax Department launched the detailed verification exercise on 18.08.2026. The exercise is focused on:
- suspicious foreign remittances;
- shell entities;
- persons behind such entities; and
- professionals who issued Form 15CB certificates.
Entities situated in districts along the country’s land borders that had remitted significant amounts of money abroad have also been covered.
The exercise covers approximately 394 entities, of which 117 entities are located in land-border States, along with 36 professionals.
Due Diligence Expected from Accountants
The CBDT has specifically emphasised that Accountants issuing certificates in Form 15CB/Form 146 are expected to exercise due care, diligence and professional judgment.
According to the press release, the underlying transactions and relevant facts should be properly examined before the remittances are certified. The Department has highlighted the importance of these certifications in maintaining trust in the system.
The existing TaxGuru resource on tax compliance procedures for foreign remittances discusses the certification and information requirements associated with foreign remittances.
Form 146 Corresponding to Earlier Form 15CB
The source material specifically identifies Form 146 as the corresponding form under the Income-tax Rules, 2026 for Form 15CB under the Income-tax Rules, 1962, with Rule 220 corresponding to Rule 37BB.
TaxGuru has also published an explanation of Income Tax Form 146 (Earlier 15CB), which explains the corresponding form framework.
Further Investigation Underway
The CBDT has stated that further investigations are currently underway. The press release therefore records an ongoing verification exercise concerning the identified entities, persons behind them and professionals associated with the issuance of Form 15CB/Form 146 certificates.
The announcement does not state a final finding against every entity or professional covered by the exercise. The immediate focus described by the Department is verification of the identified foreign remittances and the circumstances surrounding the relevant certifications.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 18th August, 2026
Press Release
Income Tax Department undertakes verification of suspicious foreign remittances
Based on ground intelligence and analysis of data on outward foreign remittances. the Income Tax Department has identified several suspicious entities that remitted large amounts of foreign exchange over the last three years. A nationwide network of entities engaged in remitting funds abroad was uncovered during a search operation conducted on a group of fictitious charitable trusts involved in providing accommodation entries against bogus donations/contributions. Preliminary ground verification revealed that the entities making these remittances were either non-filers or were filing income-tax returns showing very small turnovers. The turnovers had no apparent correlation with the large amounts of money being remitted abroad. They also did not appear to match the stated purpose of the remittances, such as payment for freight, import of software, or import of consulting services. Further ground-level intelligence revealed that these entities were not actually operating from the addresses declared by them.
Further analysis of the data also revealed that a large number of Form 15CB certificates were issued by a relatively small group of professionals. The remitted funds were also 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 Accountant certifying a foreign remittance to verify its taxability with reference to the books of account and other relevant documents. However, the findings raise concerns about whether adequate due diligence was carried out by the Accountants before issuing these certificates.
On 18.08.2026, the Department launched a nationwide detailed verification exercise to verify these foreign remittances, focussing on shell entities. the persons behind them, and the professionals who have issued Form 15CB certificates. Entities located in districts along the country’s land borders and remitting significant amounts of money abroad have also been covered in the exercise. The exercise has covered approximately 394 entities (including 117 entities located in land-border States), and 36 professionals.
The Department emphasises that Accountants issuing certificates in Form 15CB/Form 146 are expected to exercise due care, diligence and professional judgment. They should properly examine the underlying transactions and relevant facts before certifying the remittances, as these certifications play an important role in maintaining trust in the system.
Further investigations are currently underway.
(V. Rajitha)
Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT
