I-T Dept searches reveal undisclosed foreign assets worth Rs 200 crore

The Income Tax Department has detected undisclosed foreign assets approximately worth Rs 200 crore in searches conducted on 13 premises across Delhi, Haryana, and Himachal Pradesh.

A press release by the Central Board of Direct Taxes (CBDT) said: "The Income Tax Department conducted searches on July 23 in a group covering 13 premises across 3 States (Delhi, Haryana, and Himachal Pradesh)."

"The group, controlled by persons who have a significant political presence in a neighbouring state for decades and are occupying responsible political positions, has been generating large amounts of undisclosed income over several decades," adds the release.

"Evidence detected so far reveals undisclosed cash dealings of huge amounts in immovable property transactions, construction, etc," CBDT further said in the press release.

"The investigation, which has successfully lifted the mask, has detected undisclosed foreign assets of the said persons of more than Rs 200 crore, apart from domestic tax evasion of more than Rs 30 crore which, may, inter alia lead to severe criminal consequences under the Black Money Act, 2015, apart from action under the Income Tax Act, 1961," the release added.

It also added that black money generated in India is kept abroad through the purchase of lavish properties abroad using tax havens.

"The black money generated in India through various means has been stashed abroad in the form of lavish properties in the names of foreign trusts and companies located in tax havens."

According to the CBDT, such foreign holdings of the main persons have remained hidden for decades beneath complex multi-layered structures, located in different countries including BVI, Panama, UK, UAE, and Jersey.

It also added that "one of the persons covered during the search operation was trying to obtain citizenship of a Caribbean Island" and went on to add that "these findings may also have multi-agency ramifications.