Is CBDT Prompting High-Risk Taxpayers with Foreign Assets to Reassess Their Returns?
Click to start listening
Synopsis
The CBDT is set to roll out its second NUDGE campaign, targeting high-risk taxpayers with foreign assets. This initiative urges them to review and amend their income-tax returns by December 31, 2025, to avoid penalties. Following a successful first campaign, this move aims to ensure compliance and enhance transparency in reporting foreign assets.
Key Takeaways
- Second NUDGE campaign initiates on November 28, targeting high-risk taxpayers.
- Deadline for revising returns is December 31, 2025.
- First campaign led to significant disclosures of foreign assets.
- Accurate reporting of foreign assets is a legal requirement.
- The CBDT emphasizes data analytics to improve compliance.
New Delhi, Nov 27 (NationPress) The Central Board of Direct Taxes (CBDT) announced on Thursday the initiation of its second ‘NUDGE’ campaign. This campaign will involve sending SMS and emails to high-risk taxpayers, urging them to reassess and amend their income-tax returns before December 31, 2025 to evade potential penalties.
Through its analysis of the Automatic Exchange of Information (AEOI) for the fiscal year 2024-25, the CBDT has pinpointed high-risk instances where foreign assets may exist but are absent from the filed Income Tax Returns (ITRs) for Assessment Year 2025-26.
Launching on November 28, the campaign aims to enhance accurate reporting in the Schedule Foreign Assets (FA) and Foreign Source Income (FSI) sections of ITRs.
The first NUDGE campaign, which commenced on November 17, 2024, focused on select taxpayers flagged by foreign jurisdictions under the AEOI framework for not disclosing foreign assets in their ITRs for Assessment Year 2024-25.
This initiative proved successful, with 24,678 taxpayers (including many not specifically nudged) re-evaluating their returns and reporting foreign assets totaling Rs 29,208 crore, along with foreign-source income amounting to Rs 1,089.88 crore.
According to a statement from the Finance Ministry, “Complete and accurate disclosure of foreign assets and income is a statutory obligation under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.”
The CBDT employs advanced data analytics to streamline compliance, diminish information asymmetry, and cultivate a transparent and trust-based relationship with taxpayers. This initiative is in line with the vision of Viksit Bharat, promoting accountability, transparency, and a culture of voluntary compliance.
The CBDT continues to enhance its data-driven, non-intrusive, and taxpayer-centric approaches aimed at boosting voluntary compliance.
The “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” initiative underscores the CBDT’s dedication to a forward-thinking, technology-centered, and trust-driven tax administration that promotes accurate reporting and augments revenue collection.
The CBDT encourages all eligible taxpayers to seize this opportunity to guarantee full compliance with statutory reporting mandates.
Point of View
We recognize the importance of the CBDT's proactive approach in fostering tax compliance among high-risk taxpayers. This initiative reflects a commitment to transparency and accountability, ensuring that taxpayers are informed of their obligations while promoting a culture of self-disclosure. By leveraging data analytics, the CBDT is not only enhancing compliance but also reinforcing trust within the tax system.
NationPress
27/11/2025
Frequently Asked Questions
What is the NUDGE campaign?
The NUDGE campaign is an initiative by the CBDT aimed at encouraging high-risk taxpayers to review and amend their income-tax returns, particularly regarding foreign assets and income.
What is the deadline for revising returns?
Taxpayers are advised to review and revise their income-tax returns by December 31, 2025, to avoid penalties.
Why is the CBDT targeting high-risk taxpayers?
High-risk taxpayers are targeted because they may hold foreign assets that have not been disclosed in their income-tax returns, which is a statutory requirement.
What were the outcomes of the first NUDGE campaign?
The first NUDGE campaign resulted in 24,678 taxpayers revisiting their returns and disclosing foreign assets worth Rs 29,208 crore and foreign-source income of Rs 1,089.88 crore.
How can taxpayers ensure compliance?
Taxpayers can ensure compliance by accurately reporting all foreign assets and income in their income-tax returns, as required by the Income-tax Act and related legislation.
