Centre flags possible tax evasion as Indian funds in Swiss banks triple to Rs 38,000 crore

Amid reports that Indian funds in Swiss banks tripled to Rs 38,000 crore in 2024, the Centre said it is closely monitoring possible tax evasion, leveraging various information exchange mechanisms with Switzerland on foreign assets and income.

In a statement issued on Friday, the finance ministry said that India regularly receives information about such foreign accounts and assets from 100+ tax jurisdictions, including Switzerland.

It further said 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 regularly since then, covering even those accounts suspected of involvement in financial irregularities.

According to a Swiss National Bank report, money parked by Indians in Swiss banks more than tripled in 2024, reaching 3.54 billion Swiss francs, or Rs 37,600 crore.

Elaborating the mechanism to check tax evasion, the finance ministry has said that the tax department regularly undertakes a systematic review of data so received and identifies taxpayers, whose cases require further verification.