Govt raised Rs. 35,104 crore in tax and penalties over 10 years under Black Money Act, only Rs 338 cr recovered

The government has raised a tax demand of almost Rs. 35,000 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 from July 1, 2015 to March 31, 2025, but only Rs. 338 crore has been recovered till March 31 this year, the Parliament was informed on Tuesday.

The revelations were made after the Ministry of Finance in a written response to the unstarred question raised by Rajya Sabha MP John Brittas regarding black money and the surge of Indian-linked funds in Swiss bank accounts.

In its response, the Ministry cited media reports referencing Swiss National Bank (SNB) statistics that indicate a rise in Indian-linked funds in 2024 compared to the previous year. 

However, the Ministry stated that these statistics include various financial instruments such as customer deposits, deposits in foreign branches of Swiss banks, other liabilities as well as amounts due to banks. 

The Swiss authorities have also reportedly stated that the SNB statistics shouldn’t be used for analysing deposits held by Indian residents in Switzerland.

The Ministry further informed that tax demands totalling Rs. 21,719 crore were raised between July 2015 and March 2025 under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. 

Additionally, penalty demands amounting to Rs. 13,385 crore were raised during the same period. 

Thus the tax demands of Rs. 21,719 crore from 2015 to 2025 and additional penalty of Rs. 13,385 crore bring the amount to approximately Rs. 35,000 crore. 

However, no country-wise breakup of these demands is maintained. 

Notably, despite the substantial demands raised, only Rs. 338 crore has actually been recovered till March 31, 2025, reflecting a significant gap between the claimed liabilities and actual realisation.

Brittas, who is a Rajya Sabha MP has asked questions with Minister of Finance — whether Indian-linked funds in Swiss banks surged more than three times the previous year’s amount; the details of individual versus institutional deposits thereof; how much is legitimate institutional capital or foreign trade-related funds, and how much could potentially be illicit black money; details of outstanding tax demand as on date arisen from the data shared with India via Automatic Exchange of Information under India-Switzerland tax agreement. 

He also asked about the details and status of enquiries conducted regarding Swiss holdings; and steps taken to recover unpaid taxes, penalties, or interest by Indian citizens or entities holding Swiss deposits, and total amount recovered so far.