CBDT Launches Second NUDGE Campaign for Foreign Asset Compliance

Press Release, dated 27-11-2025

The Central Board of Direct Taxes (CBDT) has initiated the second phase of its NUDGE campaign, aimed at promoting voluntary tax compliance among individuals holding undisclosed foreign assets. This campaign builds on the success of the first NUDGE campaign launched in 2024.

1. Background – First NUDGE Campaign (Launched on 17 November 2024)

The first NUDGE campaign targeted select taxpayers identified through information shared by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework. These individuals were flagged for holding foreign assets that were not disclosed in their Income Tax Returns (ITRs) for Assessment Year 2024-25.

2. Impact of the First Campaign

The initiative delivered noteworthy results:

• 24,678 taxpayers—including many who were not directly contacted — revisited their tax filings.
• Taxpayers disclosed foreign assets worth ₹29,208 crore.
• Additionally, foreign-source income of ₹1,089.88 crore was reported.

This demonstrated a strong willingness among taxpayers to make corrective disclosures once alerted.

3. Identification of High-Risk Cases for AY 2025-26

As part of ongoing compliance analytics, CBDT examined AEOI information for FY 2024-25 (CY 2024). This review revealed high-risk cases where taxpayers appear to hold foreign assets that have not been reported in their ITRs filed for AY 2025-26.

These discrepancies indicate potential non-disclosure or under-reporting of overseas assets, triggering the need for further intervention.

4. Launch of the Second NUDGE Campaign

In response to the findings, CBDT is rolling out the second NUDGE campaign to encourage self-correction before initiating stricter enforcement actions.

5. Mode of Communication

Starting 28 November 2025, CBDT will send:

• SMS alerts
• Email notifications

These communications will be delivered to identified taxpayers advising them to review and, if necessary, revise their ITRs.

6. Deadline for Voluntary Compliance

Taxpayers receiving the NUDGE communication are strongly advised to:

• Re-examine their tax returns, especially disclosures relating to foreign assets.
• File revised returns (where required) on or before 31 December 2025.

CBDT cautions that failure to correct discrepancies by the deadline may lead to penal consequences, including prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

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