Govt. Denies Link Between Surge in Swiss Bank Funds and Indian Black Money

Indian funds in Swiss banks have reportedly more than tripled in 2024, touching 3.5 billion Swiss francs (approximately ₹37,600 crore), the highest level recorded since 2021. This surge, as highlighted in media reports citing Swiss National Bank (SNB) statistics, also includes an 11% rise in customer deposits. However, the Government of India has downplayed the implications of these figures in connection to black money.

In response to a question in the Rajya Sabha, Minister of State for Finance Shri Pankaj Chaudhary explained that the SNB data includes a wide range of financial instruments and liabilities, such as customer deposits in foreign branches, other liabilities, and interbank dues. He emphasized that the Swiss authorities themselves have cautioned against interpreting SNB data as indicative of deposits held specifically by Indian residents.

India has been receiving annual financial data from Switzerland under the Automatic Exchange of Information (AEOI) framework since 2018, with the first exchange taking place in September 2019. This information-sharing arrangement is part of a broader effort involving over 100 foreign jurisdictions to combat tax evasion and undisclosed foreign assets.

Responding to queries on action taken to recover black money, the minister highlighted that under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA), 684 disclosures amounting to ₹4,164 crore were made during a three-month compliance window in 2015. Tax and penalty collections from these disclosures stood at approximately ₹2,476 crore.

As of March 31, 2025, a total of 1,021 assessments have been completed under the BMA, resulting in tax and penalty demands of over ₹35,105 crore. So far, 163 prosecution complaints have been filed and ₹338 crore has been recovered under the Act.

The government reiterated that whenever instances of tax evasion are found through the AEOI or other channels, appropriate legal action — including surveys, assessments, and prosecutions — is undertaken.

Click Here To Read Unstarred Questions

Author
Recent Posts

Mariya Paliwala

Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

Latest posts by Mariya Paliwala (see all)