Lok Sabha Question No. 2398 (UNSTARRED), answered on 2025-08-04
Subject: Black Money in Foreign Banks
Ministry: FINANCE
Asked by: Shri Deepender Singh Hooda

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION 2398 TO BE ANSWERED ON MONDAY, AUGUST 04, 2025 / SRAVANA 13, 1947 (SAKA)

## BLACK MONEY IN FOREIGN BANKS

## 2398. SHRI DEEPENDER SINGH HOODA

Will the Minister of Finance be pleased to state:

(a)  whether the Government is aware that Indian deposits in Swiss banks have increased over threefold in 2024, reaching approximately Rs. 37,600 crore, as per Swiss National Bank data; (b)  if so, the details thereof and the reasons therefore; (c) the total quantum of black money held by Indians in foreign banks along with the details and quantum of money brought back during the last five years; (d)  the steps taken since 2014 to identify, investigate and repatriate illicit foreign deposits held by Indian citizens and what measurable outcomes have been achieved; and (e) whether the Government acknowledges the failure of current mechanisms to curb the flight of black money abroad and if so, the measures being planned to prevent further outflows and ensure accountability.

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) and (b) There are some media reports based on Swiss National Bank (SNB) statistics which mention that Indian linked funds in Swiss banks have risen in 2024 as compared to previous year's amount. The media reports also mention that as per Swiss authorities, the data in respect of SNB statistics  includes,  inter  alia,  amounts  due  in  respect  of  customer  deposits  (including  in  foreign branches of Swiss Banks located in any country), other liabilities as well as amounts due to banks,

## ANSWER

and that the Swiss authorities have clarified that the SNB annual banking statistics should not be used for analysing deposits held by residents of India in Switzerland.

It is stated that Switzerland has been providing annual financial information about Indian residents since  2018  under  the  Automatic  Exchange  of  Information  (AEOI)  framework.  The  first  data transmission to Indian authorities occurred in September 2019, and the exchange has continued since  then.  Further,  India  receives  information  about  foreign  assets  and  income  from  100  + foreign  tax  jurisdictions.  Whenever  any  instance  of  tax  evasion  is  detected,  appropriate  action under  Direct  Tax  Laws,  including  searches,  surveys,  enquiries,  assessment  of  income,  levy  of taxes, penalties etc. and filing of prosecution complaints in criminal court, wherever applicable, is taken.

(c) There is no expression as 'black money' in the Income Tax Act, 1961 (ITA) or in the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA). Further, since the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into force on 1 st July, 2015, 684 disclosures involving undisclosed foreign assets worth Rs. 4164 crores were made during the one-time three months compliance window, under BMA, from  1 st July,  2015  to  30 th September,  2015.  The  amount  collected  by  way  of  tax  and penalty in such cases was about Rs. 2476 Crores. Furthermore, till 31.03.2025, 1021 assessments have  been  completed  under  the  Black  Money  (Undisclosed  Foreign  Income  and  Assets)  and Imposition of Tax Act, 2015 (BMA) raising tax and penalty demand of over Rs. 35,105 crores approximately and 163 prosecutions complaints have been filed. The tax demand gets crystallized conclusively  when  appeals,  if  any,  preferred  before  CIT(A),  ITAT,  Hon'ble  High  Court  and Hon'ble Supreme Court are decided. Notably, from 01.07.2015 to 31.03.2025 recovery to the tune of  Rs.338  Crores  has  been  made  against  tax/  penalty/  interest  demand  raised  under  the  Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

(d) Steps taken since 2014 to identify, investigate and repatriate illicit foreign deposits held by Indian citizens are listed as below:

(i) Special  Investigation  Team  (SIT)  on  Black  Money  under  the  Chairmanship  and  ViceChairmanship of two former Judges of the Hon'ble Supreme Court was constituted in May 2014, to  coordinate  policy  and  investigation  across  agencies  in  matters  related  to  foreign  stashing  of unaccounted monies.

(ii) Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 which has come into force w.e.f. 01.07.2015 has been enacted to specifically and effectively deal with the issue of black money stashed abroad.

(iii) Effective  enforcement actions have been undertaken including expeditious investigation in foreign assets cases. Such actions include searches, surveys, enquiries, assessment of income, levy of taxes, penalties, etc. and filing of prosecution in criminal courts, wherever applicable.

(iv) The  Government  has  taken  pro-active  and  effective  steps  whenever  any  credible information has been received with regard to black money abroad, whether in HSBC cases, ICIJ cases, Paradise Papers or Panama Papers. These steps include constitution of Multi-Agency Group in  relevant  cases,  calling  for  definite  information  from  foreign  jurisdictions,  bringing  the  black money to tax under relevant law, launching prosecutions against the offenders etc.

(v) The Fugitive Economic Offenders Act, 2018 has been enacted to provide for attachment and confiscation of the proceeds of crime associated with scheduled economic offences and the properties of the fugitive economic offenders and deter them from evading the process of Indian law by remaining outside the jurisdiction of Indian Courts.

(vi) The Government of India has been proactively engaging with foreign governments, for exchange of information, and has entered into tax treaties including Double Taxation Avoidance Agreements,  Tax  Information  Exchange  Agreements,  the  Multilateral  Convention  on  Mutual Administrative  Assistance  in  Tax  Matters  and  the  SAARC  Multilateral  Agreement,  with  other countries which provide for mutual administrative assistance including exchange of information concerning taxes.

(vii) India  has  also  joined  the  Automatic  Exchange  of  Information  (AEOI)  based  on  the Common Reporting Standard and receives  financial  account  information  of  Indian  residents  in other countries with which the AEOI relationship is activated. India has also entered into an InterGovernmental Agreement (IGA) with USA in 2015 for sharing of financial account information on automatic basis.

(viii) The NUDGE (Non-Intrusive Usage of Data to Guide and Enable) Taxpayers Campaign was launched by the Income Tax Department in November 2024 to improve taxpayers' voluntary compliance  for  declaration  of  foreign  income  and  assets.  Under  the  campaign,  informational messages  were  sent  via  SMS  and  email  to  selected  resident  taxpayers  in  respect  of  whom information has been received under the Automatic Exchange of Information that they are holding foreign assets and/ or having income from foreign sources, to accurately report foreign assets and income  from  foreign  sources  in  their  Income  Tax  Returns.  Total  of  24,678  taxpayers  reported their  foreign  assets  and  income  in  revised  ITRs  for  AY  2024-25,  while  5,483  taxpayers  filed belated returns reporting foreign assets worth ₹29,208 crore and foreign income of ₹1,089.88 crore .

(e) The  current  mechanisms  have  been  successful  in  preventing  the  proliferation  of  black money, and have promoted a concerted global effort for curtailing bank secrecy for tax purposes and promoting tax transparency. These measures have further been accompanied by digitization and  formalization  of  economy  which  have  led  to  further  reduction  in  the  opportunities  for proliferation of black money.

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