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Rupee pressured, I-T cracks fake PAN and code games behind overseas remittances
Economy
Published on 14 May 2026
One remitter allegedly used 47 fake PANs to skirt LRS
As the rupee weakens, India’s Income Tax department says it is intensifying checks on suspicious outward flows via banks and crypto wallets. Using information-sharing with Thailand, it flagged remittances routed to Thailand’s money-laundering ecosystem, including cases where the “overseas education” purpose code S0305 and incorrect PAN details were used to bypass the RBI’s LRS cap of $250,000 per year. Investigators also traced transactions tied to UPI IDs linked to gaming operations across multiple countries and to crypto-linked adult and betting networks.
- I-T flagged overseas outflows routed to individuals in Thailand under LRS
- Purpose code S0305 for overseas education was allegedly misused to mislead banks
- At least one person used 47 PANs; another allegedly used 27, all linked to LRS transfers
- Investigators found many transactions linked to UPI IDs tied to gaming sites in Curacao, Malta and Cyprus
- Form A2 is described as mandatory for all LRS remittances, with education requiring admission and invoice documents
- Offshore gambling and adult platforms reportedly used crypto payments and shell entities to remit funds abroad
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times