Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

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New Delhi, 27^th November, 2025

Press Release

CBDT launches 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets

The Central Board of Direct Taxes (CBDT) continues to strengthen its data-driven, non- intrusive and taxpayer-centric measures aimed at improving voluntary compliance. The “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” initiative reflects CBDT’s commitment to a forward-looking, technology-enabled and trust-based tax administration focused on promoting accurate reporting and enhancing revenue mobilization.

2. The first NUDGE campaign, launched on 17^th November 2024, targeted select taxpayers who had been reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework as holding foreign assets that were not disclosed in their Income Tax Returns (ITRs) for AY 2024-25. The initiative yielded positive outcomes, with 24,678 taxpayers (including several not directly nudged) revisiting their returns and disclosing foreign assets amounting to ₹29,208 crore, along with foreign-source income of ₹1,089.88 crore.

3. CBDT receives information relating to foreign financial assets of Indian residents from partner jurisdictions pursuant to Common Reporting Standards (CRS) and from the United States under the Foreign Account Tax Compliance Act (FATCA). This information assists in identifying potential discrepancies and guiding taxpayers towards timely and accurate compliance.

4. Analysis of AEOI information for FY 2024-25 (CY 2024) has identified high-risk cases where foreign assets appear to exist but have not been reported in the ITRs filed for AY 2025-26. Accordingly, CBDT is launching the second NUDGE campaign, under which SMSs and emails will be issued from 28^th November 2025 to such taxpayers, advising them to review and revise their returns on or before 31^st December 2025 to avoid penal consequences.

5. The campaign aims to facilitate correct reporting in Schedule Foreign Assets (FA) and Foreign Source Income (FSI) in ITRs. 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.

6. Adopting a PRUDENT approach to tax administration, CBDT utilises advanced data analytics to simplify compliance processes, reduce information asymmetry and reinforce a transparent and trust-oriented interface with taxpayers. The initiative aligns with the vision of Viksit Bharat, fostering accountability, transparency and a culture of voluntary compliance.

7. CBDT advises all eligible taxpayers to utilise this opportunity to ensure complete compliance with statutory reporting requirements. For further information on CRS, FATCA, Schedule FA and Schedule FSI, taxpayers may refer to the official website www.incometax.gov.in.

(V. Rajitha)

Commissioner of Income Tax

(Media & Technical Policy) &

Official Spokesperson, CBDT

Foreign assets compliance: CBDT issues SMS/email nudges urging taxpayers to review and revise ITRs to report foreign assets. The tax authority is issuing automated SMS and email notices to taxpayers identified via international information exchanges as holding foreign financial assets not reported in their ITRs, advising them to review and revise returns to ensure accurate reporting in Schedule FA and Schedule FSI by a specified deadline to avoid penal consequences; the campaign uses advanced data analytics to target high risk cases and promote voluntary, non intrusive compliance.