CBDT's Second NUDGE Campaign Sets Sights on Foreign Asset Disclosure

Updated: November 27, 2025 17:33

Image Source: Matrubhumi English

The CBDT has launched its second NUDGE initiative, using data analytics and targeted notifications to enhance voluntary disclosure of foreign assets, aiming to foster transparency and prevent penal action through timely revisions before December 31, 2025.

In a strategic move to bolster voluntary compliance, the Central Board of Direct Taxes (CBDT) today launched the second phase of its innovative NUDGE initiative aimed at encouraging taxpayers to disclose foreign assets and income accurately. This campaign marks a significant step in India's ongoing efforts to ensure transparency and responsible reporting of overseas financial holdings.

The initiative revolves around targeted SMS and email alerts dispatched from November 28, 2025, to identified high-risk taxpayers. These communications advise them to review and revise their Income Tax Returns (ITRs) for Assessment Year 2025-26 by December 31, 2025, to avoid penalties under the Black Money Act. The effort follows a detailed analysis of Automatic Exchange of Information (AEOI) data for FY 2024-25, which uncovered discrepancies in foreign asset reporting, prompting the CBDT to adopt this proactive, taxpayer-centric approach.

Key highlights include:

- Aimed at high-risk cases where foreign assets seem unreported, with notifications starting November 28, 2025, and a deadline set for December 31, 2025, for revisions.

- The campaign emphasizes accuracy in disclosures in Schedule Foreign Assets (FA) and Schedule Foreign Source Income (FSI), both mandated by Indian tax laws.

- This initiative is part of CBDT’s PRUDENT approach—focusing on professionalism, responsibility, understanding, due diligence, effective enforcement, non-intrusive administration, and leveraging technology for tax compliance.

- The first NUDGE campaign, which launched in November 2024, resulted in over 24,600 taxpayers revising their returns, disclosing foreign assets worth Rs 29,208 crore, and foreign-source income of Rs 1,089.88 crore.

- India’s collaboration with international partners via CRS and FATCA frameworks enables data exchange that strengthens enforcement and compliance.

The government’s focus remains steadfast on fostering a culture of transparency and voluntary compliance among taxpayers with global holdings. The CBDT encourages all eligible taxpayers to make use of this final window to revisit and amend their returns, promoting accountability and curbing undisclosed foreign assets.

Sources: PIB, New Indian Express, Times of India