CBDT launches 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets (Press Release dated 27th November 2025)

The Central Board of Direct Taxes (CBDT) has launched the second phase of its “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” initiative to strengthen voluntary compliance in respect of foreign assets. Continuing its data-driven, non-intrusive and taxpayer-centric approach, the 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.

Based on analysis of information received from partner jurisdictions under the Automatic Exchange of Information (AEOI) framework, Common Reporting Standards (CRS) and the Foreign Account Tax Compliance Act (FATCA), high-risk cases have been identified where foreign assets appear to exist but have not been reported in the Income Tax Returns filed for AY 2025–26. Accordingly, SMSs and emails will be issued from 28 November 2025 advising such taxpayers to review and revise their returns on or before 31 December 2025 to avoid penal consequences, with the campaign aiming to facilitate correct reporting in Schedule Foreign Assets (FA) and Foreign Source Income (FSI) as mandated under the Income-tax Act, 1961 and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.