The Government has taken expeditious action on information received from the French authorities regarding HSBC foreign bank accounts

Government
of India 

Ministry of Finance

Department
of Revenue 

Central Board of
Direct Taxes

North
Block, New Delhi 

Dated: 09^th February, 2015

PRESS RELEASE

• Information
  about HSBC foreign bank accounts was received from the French authorities in respect
  of 628 Indian persons/entities. Out of the said 628 persons, 200 were either
  non-residents or non- traceable, leaving 428 cases of residents which were
  found actionable. For these 428 actionable cases the net amount of peak balance
  was about Rs.4500 crore.

• The
  Government has taken expeditious action in these cases as per law. Up-to 31^st
  December 2014, assessments were completed in 128 cases, involving more than 350
  assessments. In the remaining cases assessment proceedings are at advance
  stage. Undisclosed income of about Rs.3150 crore was brought to tax on account
  of deposits made in unreported foreign bank accounts.

• Out
  of the above-mentioned 128 cases in which assessments were completed,
  concealment penalty proceedings u/s 271(1)(c) have been initiated in almost all
  the cases.

• About
  60 prosecutions have so far been launched for wilful attempt to evade taxes
  [S/276C(1)] and failure to furnish accounts and documents etc [S/276D]. Show
  Cause Notices before launching prosecutions have been issued in a large number
  of other cases wherein further action is underway.

•  Today’s
  media reports carry news item about foreign bank accounts held by 1195 Indians.
  Top hundred names have been published in a newspaper. Some of these names
  already figure in the earlier list available with the Government. Necessary
  investigation as per the provisions of law will be taken up in all the new
  cases, expeditiously.

• Income
  Tax Department is already in touch with the whistle blower who apparently
  brought out the names of persons holding undisclosed bank accounts in HSBC,
  Switzerland. He has been requested to share information available with him in
  regard to
  undisclosed bank accounts of Indians in HSBC, Switzerland and other
  destinations. His response is awaited.

• During
  last 6 months, the Government has taken vigorous and pro-active measures to
  expedite investigations in the cases of Indians holding undisclosed foreign
  accounts/assets abroad. Useful contacts have been established with foreign
  governments who might have some further information in this regard. Based upon
  credible information of undisclosed foreign bank accounts, fresh references for
  obtaining further information in more than 600 cases have been made to foreign
  jurisdictions, under available treaties/agreements. The same are being pursued.