Rs 1.29 L Cr Unlawful foreign remittance

The income tax department has uncovered a massive over-seas remittance trail involving 6,422 newly identified entities that collectively sent ₹1.29 lakh crore abroad, triggering action against 394 firms and putting a wider net-work of companies and individuals under the scanner, people aware of the probe said.

The tax probe has found that a substantial portion of the money moved to a handful of overseas destinations. Singapore, the UAE, – Hong Kong, Mauritius and China together accounted for 72.3% of the total remittances. Singapore emerged as the largest destination, receiving ₹41,885 crore while ₹18,331 crore was remitted to the UAE and ₹18,064 crore to Hong Kong.

“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, without divulging any further details. The probe is also being closely monitored by top officials from the department of revenue.

The pace of outward flows has added to the concerns. ₹43,048 crore was remitted overseas in the first half of FY26, already equivalent to 78% of the full-year figure for FY25.

The probe has brought renewed focus on how corporate structures and cross-border transactions are being used to move funds out of India at a time when the central bank is actively managing dollar liquidity and currency volatility, an official added.

Investigators are now examining the source of funds, the nature of the transactions and the beneficiaries behind the overseas transfers. The department has already acted against 394 firms, the department said in a press statement issued Tuesday.

But the investigation is far from over. More companies and individuals are understood to be under scrutiny, with further searches and enforcement action expected.