Foreign Remittances

The exercise covers entities that sent large sums abroad despite reporting little business activity or not filing returns, along with professionals who certified payments.

The income tax department has launched a drive to verify "suspicious" foreign remittances by entities with little or no reported business activity, the persons behind them, and the chartered accountants who issued tax determination certificates. Entities located in districts along India'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 said in a post on X. "On August 18, the Department launched a nationwide detailed verification exercise to verify these (suspicious) foreign remittances, focusing on shell entities, the persons behind them, and the professionals who have issued Form 15CB certificates," the tax department said. The verification of suspicious foreign remittances follows data analysis and ground intelligence indicating significant overseas remittances by entities with littl

Remittances to India are projected to reach up to $140 billion in FY26 despite West Asia tensions, supported by resilient inflows and precautionary transfers, SBI report says

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Investments in foreign equity/debt only major category with gains

The recommendation was included in a staff-level report released by the IMF earlier this month after the second review of its $7 billion bailout programme

Advanced economies such as the US, the UK, Singapore, Canada, and Australia together accounted for more than half of India's remittances in FY24, reflecting a shift in migration patterns

According to a survey by the Reserve Bank of India on post-Covid-19 remittances, the United States emerges as the primary contributor, constituting 23% of the total amount

India received over USD 111 billion in remittances in 2022, the largest in the world, becoming the first country to reach and even surpass the USD 100 billion mark, the United Nations migration agency has said. The International Organisation for Migration (IOM), in its World Migration Report 2024 launched Tuesday, said that in 2022, India, Mexico, China, the Philippines and France were the top five remittance recipient countries. "India was well above the rest, receiving more than USD 111 billion, the first country to reach and even surpass the USD 100 billion mark. Mexico was the second-largest remittance recipient in 2022, a position it also held in 2021 after overtaking China, which historically had been the second-biggest recipient after India, the report said. According to the report's data, India was the top country receiving remittances in 2010 (USD 53.48 billion), 2015 (USS 68.91 billion), and 2020 (USD 83.15 billion), with the remittances crossing the USD 100 billion mark t

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The Central Board of Direct Taxes (CBDT), the top direct tax body, has directed the officers concerned to initiate verification and send notices to those behind these transactions on March 28

North America had a high share of remittances before the global financial crisis

Growth in the money repatriated by migrant workers will slow to 4.2% in 2022 as base effects fade

India, the world's largest recipient of remittances, received $87 billion in 2021 with the United States being the biggest source, accounting for over 20% of these funds

A year and a half into the pandemic, policy makers have given little thoughtful guidance to families.

The I-T department also advised authorised dealers to accept such forms till June 30, 2021 for the purpose of foreign remittances.

For education-related foreign remittances funded by loans, though, the tax will be just 0.5% for amount above Rs 7 lakh, but will go up to 5% if PAN is not provided

Remittance receipts in Asia and the Pacific would fall by $54.3 billion, equivalent to 19.8 per cent of remittances in 2018