Sent money abroad? I-T Department's new remittance verification drive means keep your paperwork ready
The Income Tax Department began a nationwide check of suspicious outward remittances on August 18, 2026, covering 394 entities and the CAs who certified them. Here's what genuine LRS remitters should do to avoid a notice.
The Income Tax Department launched a nationwide verification drive on August 18, 2026, targeting outward foreign remittances sent by entities and individuals whose declared business activity doesn’t match the money they sent abroad, per IBG News and Ground News.
What triggered it
Data analytics and ground intelligence flagged 394 entities for scrutiny, including 117 in districts along India’s land borders and 36 professionals. Many of the flagged remittances cited purposes like software imports or consulting fees that didn’t line up with the remitter’s actual reported turnover. Investigators are also looking at a set of entities allegedly using fictitious charitable trusts and “donation” routes to move money out.
Chartered accountants under the lens too
The drive isn’t limited to remitters. The department is also examining the 36 professionals who issued certification for these remittances — the certificate a CA signs off on before money leaves India (historically Form 15CB, renumbered Form 146 under the Income-tax Act, 2025, alongside the remitter’s own declaration, Form 15CA, now Form 145). The concern is whether adequate due diligence was done before some certificates were issued.
Why ordinary remitters should still pay attention
This drive targets suspicious cases, not routine remittances. But it’s a reminder that every outward transfer under the Liberalised Remittance Scheme (LRS) — for a child’s education, medical treatment, an overseas property, or investing abroad — leaves a data trail your bank reports to the tax department. Current LRS/TCS rules to keep in mind:
| Purpose | TCS on amount above ₹10 lakh/year* |
|---|---|
| Education (loan-funded) | Nil |
| Education (self-funded) / Medical treatment | 2% |
| Overseas tour packages | Flat 2% |
| Other purposes (investment, gifts, property, maintenance) | 20% |
*No TCS applies on eligible LRS remittances up to ₹10 lakh in a financial year. TCS collected shows up in your Form 26AS and can be claimed as credit while filing your ITR.
What genuine remitters should do
- Keep documentary proof of the source of funds and the stated purpose — salary slips, sale deeds, education admission letters, or medical estimates — matched to what you declared in Form 15CA/145.
- Reconcile TCS credit shown in Form 26AS with your bank’s remittance certificate before filing your return.
- Don’t ignore an income-tax notice if one arrives — respond within the given timeline with documentation, since non-response can trigger a full reassessment.
- If you’re a CA issuing 15CB/Form 146 certificates, ensure the underlying invoices and business activity genuinely support the remittance before signing off, given professionals are now within scope of scrutiny.
Source: IBG News, Ground News, ClearTax, August 18–19, 2026.
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