CBDT warns foreign bank account holders

The Ministry of Finance recently issued strict guidelines for Indians holding foreign bank accounts.

In an internal order the CBDT has cleared a proposal on Sensitisation of Investigation Wing of Income Tax Department on action to be taken regarding undisclosed bank accounts and other assets outside India.

Central Board of Direct Taxes (CBDT) has asked the Investigation Directorate to gather necessary intelligence regarding individuals and entities who have opened undisclosed foreign bank accounts.

The intelligence thus gathered will be shared with the FTTR division for collecting further information from countries under Double Taxation Avoidance Agreements and Tax Information Exchange Agreements.

Accordingly the Investigation Directorate were asked to give utmost importance to this matter and take action.

In a four point action plan, CBDT sought the following:

To gather intelligence about the agents/officials of foreign banks operating in India who are soliciting opening of foreign bank accounts.

To collect information about Indian national suspected to have bank accounts in tax havens and also about agents or money changers involved in such work.

Obtain information through central information branches regarding frequent foreign visits of Indian nationals to tax havens

Keep close watch to collect evidences during search survey operations pertaining to opening of foreign banks accounts or other immovable.