Maintain proper documents proving source of funds remitted abroad

Have transparent reasons for each transfer and use reputable service providers in order to avoid scrunity

According to a recent media report, 89 foreign remittance cases have come under the taxman’s lens for suspected tax evasion. With Indians increasingly remitting money abroad under the liberalised remittance scheme (LRS) for various purposes, including children’s education, purchase of property, and medical treatment, many transactions have now come under scrutiny for potential tax fraud.

Ankit Jain, partner, Ved Jain & Associates, says, “Technological advancements allow the tax authorities to quickly and efficiently process large volumes of data and identify suspicious transactions that may point towards tax evasion or fraud.”

The government can capture data at various points, such as