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Informist, Thursday, Nov. 27, 2025

NEW DELHI – The Central Board of Direct Taxes will launch a second campaign on Friday to nudge taxpayers to voluntarily disclose foreign assets. The apex direct tax department has identified high-risk cases where foreign assets appear to exist for 2024-25 (Apr-Mar) but have not been reported in the returns filed.

"Accordingly, the CBDT is launching the second NUDGE campaign, under which SMSs and emails will be issued from 28th November 2025 to such taxpayers, advising them to review and revise their returns on or before 31st December 2025 to avoid penal consequences," the department said in a press release. "The CBDT advises all eligible taxpayers to utilise this opportunity to ensure complete compliance with statutory reporting requirements."

Accurate and complete disclosure of foreign assets and income is a statutory requirement under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The Black Money Act prescribes penalty of INR 1 million for non disclosure of foreign assets apart from tax of 30% and penalty of 300% on the tax payable.

The department will initially target 25,000 high-risk cases, and in the second phase starting from mid December, the campaign will be expanded to cover other cases as well to improve the compliance ecosystem, sources in CBDT said. Big corporates whose employees have foreign assets but have not disclosed these have been onboarded to sensitise taxpayers, they said. Industry bodies, Institute of Charatered Accountants of India, and associations have also been requested to create awareness. After the 'NUDGE' campaign, non-complaint cases will be taken up for further scrutiny and verification, sources said.

Till June, the department assessed about 1,080 cases, raising demand of around INR 400 billion under the first NUDGE campaign launched in November last year, sources said. In the press release, CBDT said the campaign led to taxpayers disclosing foreign assets amounting to INR 292.08 billion, along with foreign-source income of INR 10.90 billion.  End

Reported by Priyasmita Dutta

Edited by Avishek Dutta

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