The Central Board of Direct Taxes (CBDT) on Thursday said it is launching the second ‘NUDGE’ campaign, under which SMSs and emails will be sent to high-risk taxpayers, advising them to review and revise their income-tax returns on or before December 31, 2025 to avoid penal consequences.
Analysis of the Automatic Exchange of Information (AEOI) for FY 2024-25 (CY 2024) by CBDT has identified high-risk cases where foreign assets appear to exist but have not been reported in the ITRs filed for AY 2025-26.
The campaign from November 28 aims to facilitate correct reporting in Schedule Foreign Assets (FA) and Foreign Source Income (FSI) in ITRs
The first NUDGE campaign, launched on November 17, 2024, targeted select taxpayers who had been reported by foreign jurisdictions under the 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 Rs 29,208 crore, along with foreign-source income of Rs 1,089.88 crore.
“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,” said Finance Ministry in a statement.
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.
It 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 mobilisation.
The CBDT advises all eligible taxpayers to utilise this opportunity to ensure complete compliance with statutory reporting requirements.
