India’s Income Tax Department has traced Rs. 1.29 lakh crore in overseas remittances involving 6,422 entities. The probe surfaced on August 20, 2026, as officials examined large cross-border transfers from India amid rupee pressure.
Authorities acted against 394 firms and expanded scrutiny to companies and individuals linked with the transactions. Investigators are checking fund sources, transaction purposes, and overseas beneficiaries across several jurisdictions.
Singapore, the UAE, Hong Kong, Mauritius, and China received 72.3% of the total remittance value, according to the investigation. Singapore led the destinations with Rs. 41,885 crore, while the UAE received Rs. 18,331 crore and Hong Kong received Rs. 18,064 crore.
Officials identified the network through data analysis and are examining ownership structures, business activity, and transaction records.
The investigation also found 83 entities with foreign addresses linked to Rs. 36,175 crore in remittances. Their ownership and underlying transactions have drawn closer attention from tax authorities.
The department said action against 394 firms had already started, while further enforcement measures could follow.
“This is a massive trail and a large-scale operation. Probe is still on and real modus operandi can emerge only after a few days,” a senior official told ET.
The scale of outward transfers has added another layer to the investigation. India’s entities sent Rs. 43,048 crore overseas during the first half of FY26. The figure already equals 78% of the amount transferred during the entire FY25.
The probe comes as the Reserve Bank of India manages currency volatility through foreign exchange interventions. Investigators are now focusing on whether reported transactions match actual business activity and the stated purpose of payments.
The findings do not establish wrongdoing across the entire Rs. 1.29 lakh crore trail. Legitimate international trade, services, investments, and corporate payments can also create large remittances. Further scrutiny will determine which transactions require enforcement action.
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