Union Ministry of Finance: Taxpayers Respond Positively to IT Dept's Data-Matching Initiative Efforts

The ministry also stated that after media reports, it has been indicated a rise in deposits by Indian entities in Swiss bank accounts. However, the Central Board of Direct Taxes (CBDT) said that India continues to receive detailed financial data under global tax cooperation frameworks, including the Automatic Exchange of Information (AEOI) with over 100 jurisdictions.

Indian deposits in Swiss banks soared over threefold in 2024, touching nearly Rs 37,600 crore, according to data from the Swiss National Bank (SNB). "Switzerland, in particular, has been sharing annual financial details of Indian residents since 2018, with the first exchange taking place in September 2019. The data includes information even on accounts flagged for suspected irregularities," the statement added.

It also showed that as many as 24,678 taxpayers reviewed their income tax returns (ITRs) and 5,483 taxpayers filed belated returns for the Assessment Year 2024-25 reporting foreign assets worth a staggering Rs 29,208 crore and additional foreign income of rs 1,089.88 crore. "The disclosures were part of a system-driven verification exercise launched by CBDT, using data received under the Automatic Exchange of Information (AEOI) framework," it said

The ministry also said that the Indian government has been actively receiving annual financial data on Indian taxpayers from over 100 tax jurisdictions, including Switzerland, under multiple global information-sharing agreements. "Notably, Switzerland has shared financial account data of Indian residents with Indian authorities since 2018 as part of the AEOI protocol. The first such automatic data exchange occurred in September 2019, and the process has continued annually since then," it said.

The impact of this effort has been significant. "In addition to the Rs 29,208 crore in foreign assets and Rs 1,089.88 crore in unreported income, the total number of taxpayers declaring foreign assets and income in ITRs for AY 2024-25 rose to 2.31 lakh, up 45.17 per cent from 1.59 lakh in AY 2023-24," the statement said.

The ministry also stated that this rise indicates increased taxpayer awareness and growing compliance driven by our data-driven and systematic approach. However, officials also confirmed that enforcement actions, including searches, surveys, and other statutory steps, are being undertaken in cases where taxpayers remain non-compliant despite repeated outreach.