The Centre has clarified its efforts and achievements in recovering black money from abroad under the Black Money Act (BMA), 2015. As of March 31, 2025, the Income Tax Department has completed 1,021 assessments under the BMA, resulting in the levying of tax and penalties amounting to over Rs 35,105 crore. This development comes amidst ongoing discussions regarding Indian deposits in Swiss banks, which have been a controversial topic in recent times.
Minister of State in the Ministry of Finance, Pankaj Chaudhary, addressed the Parliament on the matter, citing media reports and clarifications from Swiss authorities. “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 the previous year’s amount,” stated Chaudhary. He also mentioned that Swiss authorities clarified that these statistics include various financial figures and should not be used to analyse individual deposits in Swiss banks held by Indian residents. This clarification is crucial as it prevents misinterpretation of the data, ensuring that the public understands the complexity behind such statistics.
Under the Automatic Exchange of Information (AEOI) framework, India has been receiving financial information annually from Switzerland since 2018. The exchange aims to identify undisclosed foreign assets and income, enabling the Indian government to take action against tax evasion. In conjunction with information from over 100 foreign tax jurisdictions, this system allows the Income Tax Department to perform inquiries, searches, assessments, and enforce the recovery of taxes and penalties. This comprehensive framework strengthens India’s ability to combat tax evasion on a global scale.
The government has made significant progress through the BMA, recovering undisclosed foreign assets worth Rs 4,164 crore during a compliance window in 2015, on which Rs 2,476 crore in tax and penalties were recovered. In addition, Rs 338 crore has been recovered as tax, penalty, or interest as of March 2025, with 163 prosecution complaints filed. These efforts showcase the government’s commitment to addressing the issue of black money effectively.
Despite the rise in Indian deposits reported by SNB, the government stresses that having accounts in Switzerland is not inherently illegal, provided the funds are declared and taxes paid.
“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) and other liabilities as well as amounts due to banks, 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,” Chaudhary reiterated.
The focus remains on undisclosed or illegal wealth, with ongoing efforts to monitor and prosecute whenever necessary. The government’s vigilance in these matters underscores its dedication to maintaining financial integrity and transparency.
