Indian deposits in Swiss banks surge to Rs 38K crore: Centre monitoring possible tax evasion

New Delhi: Amid reports that Indian deposits in Swiss banks surged to Rs 38,000 crore in 2024, the Indian government stated it is actively monitoring potential tax evasion, utilizing international data-sharing agreements with Switzerland and other nations.

In a statement on Friday, the Finance Ministry clarified that India routinely receives details about foreign bank accounts and assets from over 100 tax jurisdictions, including Switzerland.

Switzerland has been sharing annual financial data of Indian residents since 2018 through the Automatic Exchange of Information (AEOI) framework. The first such data was sent to Indian authorities in September 2019, and the exchange has continued regularly, including information on accounts potentially linked to financial misconduct.

A Swiss National Bank report revealed that Indian funds in Swiss banks jumped to 3.54 billion Swiss francs (approx. Rs 37,600 crore) in 2024 — more than three times the amount recorded earlier.

The Finance Ministry said the Income Tax Department thoroughly examines the data received under AEOI to identify cases that warrant further scrutiny. These verifications are conducted through various means such as search and survey operations and open inquiries.

For Assessment Year (AY) 2024–25, the department matched AEOI data with income tax returns (ITRs) to check whether taxpayers disclosed their foreign income and assets. In cases where such disclosures were missing or incomplete, SMS and email alerts were sent, advising taxpayers to review and update the relevant ITR schedules.

As a result of this initiative, the number of taxpayers declaring foreign assets and income rose significantly. In AY 2024–25, 2.31 lakh taxpayers made such declarations — a 45.17% increase compared to 1.59 lakh in the previous year.