The finance ministry has issued strict guidelines about Indians holding foreign bank accounts and monitoring their transactions. In an internal order the Central Board of Direct Taxes (CBDT) has cleared a proposal on 'Sensitization of Investigation Wing of Income Tax Department' on action to be taken regarding undisclosed bank accounts and other assets outside India.

CBDT has asked the Investigation Directorate to gather necessary intelligence regarding individuals and entities who have opened undisclosed foregin bank accounts. The Intelligence so gathered is to be shared with the FTTR division for collecting further information from the respective countries territories under DTAA and TIEAs. Accordingly the Investigation Directorate was asked to give utmost importance to this matter and take action on the following lines.

In a four-point action plan, CBDT sought the following: (1) to gather intelligence about the agendts officials of foreign banks operating in India who are soliciting opening of foreign bank accounts, (2) to collect information about Indian national suspected to have bank accounts in tax havens and also the agents or money changers involved in such work, (3) obtain information through central information branches (CIB) regarding frequent foreign visits of Indian nationals to tax havens, and (4) keep a close watch to collect evidences during search survey operations pertaining to opening of foreign banks accounts or other immovable.