New Delhi: The Income Tax Department will on Friday initiate the second phase of its “NUDGE” campaign, targeting taxpayers who appear to hold undisclosed foreign assets during the financial year 2024-25.
The move follows an analysis by the Central Board of Direct Taxes (CBDT) of information received under the Automatic Exchange of Information (AEOI) framework, which revealed high-risk cases where overseas holdings were not reflected in filed income-tax returns (ITRs).
Taxpayers who acquired foreign assets in FY25 (assessment year 2025-26) but omitted to disclose them in their returns are being urged to revise their filings by 31 December 2025 in order to avoid penal action.
The fresh outreach, which begins on 28 November 2025, will involve SMS and email reminders to selected individuals identified through international data-sharing arrangements.
A finance ministry statement noted that the first NUDGE campaign, launched on 17 November 2024, had already yielded significant results: 24,678 taxpayers (including several who were not directly contacted) voluntarily revised their returns, disclosing previously unreported foreign assets worth ₹29,208 crore and associated foreign-source income of ₹1,089.88 crore.
The renewed initiative underscores the tax authorities’ increasing reliance on global information-sharing mechanisms to ensure compliance with Schedule FA (Foreign Assets) reporting requirements under the Income Tax Act.
