Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

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New Delhi, 27th 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 17th 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. the 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 Foreign information assists in Account identifying towards timely and accurate compliance.

4. Tax potential Compliance discrepancies Act (FATCA). This and guiding taxpayers 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 28th November 2025 to such taxpayers, advising them to review and revise their returns on or before 31st 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

Disclosure of foreign assets: taxpayers notified to review and amend returns to correctly report foreign assets and income. Using CRS and FATCA information, the revenue authority will issue SMS and email notices to taxpayers identified as having undisclosed foreign financial assets or foreign-source income, advising them to review and revise their ITRs to correctly complete Schedule FA and Schedule FSI within a prescribed timeframe to avoid penal consequences.