Ministry of Finance

Finance Ministry refutes news media reports of alleged black money held by Indians in Switzerland

Information sought from Swiss Authorities to verify increase/decrease of deposits

Dated: 19 JUN 2021

Certain reports have appeared in the media on 18.06.2021 stating that funds of Indians in Swiss Banks have risen to over Rs 20,700 crore (CHF 2.55 billion) at the end of 2020 from Rs 6,625 crore (CHF 899 million) at the end of 2019, reversing a 2 year declining trend. It has also been stated that this is also the highest figure of deposits in the last 13 years.

Media reports allude to the fact that the figures reported are official figures reported by banks to Swiss National Bank (SNB) and do not indicate the quantum of much debated alleged black money held by Indians in Switzerland. Further, these statistics do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third–country entities.

However, the customer deposits have actually fallen from the end of 2019. The funds held through fiduciaries has also more than halved from end of 2019. The biggest increase is in “Other amounts due from customers”. These are in form of bonds, securities and various other financial instruments.

It is pertinent to point out that India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which, the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information annually for calendar year 2018 onwards.

Exchanges of Financial Account information in respect of residents of each country have taken place between both countries in 2019 as well as 2020. In view of the existing legal arrangement for exchange of information of financial accounts (which has a significant deterrent effect on tax evasion through undisclosed assets abroad), there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents.

Further, the following factors could potentially explain the increase in deposits:

a. Increase in the deposits held by Indian companies in Switzerland owing to increased business transactions

b. Increase in deposits owing to the business of Swiss Bank branches located in India

c. Increase in Inter- bank transactions between Swiss and Indian Banks

d. A capital increase for a subsidiary of a Swiss Company in India and

e. Increase in the liabilities connected with the outstanding derivative financial instruments

The Swiss Authorities have been requested to provide the relevant facts along with their view on possible reasons for increase/decrease in the light of the media reports highlighted above.

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RM/MV/KMN
(Release ID: 1728429)

 

HC admits question on “whether the provisions of Section 271(1)(c) would apply with respect to the return of income, as originally filed or to the revised return of income pursuant to opportunity u/s 153A of the Act"

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Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 16th June, 2021

PRESS RELEASE

Net Direct Tax collections for the Financial Year 2021-22 have grown at over 100%

Advance Tax collections for F.Y. 2021-22 stand at Rs. 28,780crore which shows a growth of approximately 146%

Net Direct Tax collections for the F.Y. 2021-22 have grown at a robust pace despite the disruption caused by the COVID-19 pandemic on the economy

Refunds amounting to Rs. 30,731 crore have been issued in the F.Y. 2021-22

The figures of Direct Tax collections for the Financial Year 2021-22, as on 15.06.2021 show that net collections are at Rs.1,85,871crore compared to Rs. 92,762crore over the corresponding period of the preceding year, representing an increase of 100.4% over the collections of the preceding year.  The net Direct Tax collections include Corporation Tax (CIT) at Rs. 74,356crore (net of refund) and Personal Income Tax(PIT) including Security Transaction Tax(STT) at Rs. 1,11,043 crore (net of refund).

The Gross collection of Direct Taxes(before adjusting for refunds) for the F.Y.  2021-22 stands at Rs. 2,16,602crore compared to Rs. 1,37,825 crore in the corresponding period of the preceding year. This includes Corporation Tax(CIT) at Rs. 96,923crore and Personal Income Tax (PIT) including Security Transaction Tax(STT) at Rs. 1,19,197 crore. Minor head wise collection comprises Advance Tax of Rs. 28,780crore, Tax Deducted at Source of Rs.1,56,824 crore, Self-Assessment Tax of Rs. 15,343crore; Regular Assessment Tax of Rs. 14,079crore; Dividend Distribution Tax of Rs.1086crore and Tax under other minor heads of Rs. 491crore.

Despite extremely challenging initial months of the new Fiscal , the Advance Tax collections for the first quarter of the F.Y. 2021-22 stand at Rs. 28,780 croreagainst Advance Tax collections of Rs. 11,714 crore for the corresponding period of the immediately preceding Financial Year, showing a growth of approximately 146%.This comprises Corporation Tax(CIT) at Rs. 18,358crore and Personal Income Tax (PIT) at Rs. 10,422 crore. This amount is expected to increase as further information is received from Banks.

Refunds amounting to Rs. 30,731crore have also been issued in the F.Y. 2021-22.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

ITAT upholds the addition of unexplained cash found during search u/s 69A; Holds that undisclosed income not covered by Rs.2.5 Lac exemption limit prescribed during demonetisation period; No inference can be drawn from the policy statement for extending exemption; Explanation not substantiated by evidence not sufficient for the purpose of Sec. 69A.

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