After ₹29,208 Crore Disclosure in First Drive, CBDT to Roll Out 2nd NUDGE Campaign for Foreign Asset Reporting

The Central Board ofDirect Taxes (CBDT) has launched the second “Non-intrusive Usage of Data to Guide and Enable” (NUDGE) campaign to encourage taxpayers to voluntarily disclose their foreign assets and income in order to ensure accurate reporting and enhanced revenue mobilization.

Also Read: Filing ITR with Foreign Assets? Here’s How to Complete FSI, TR, and FA Schedules Step-by-Step

During the first campaign held during November 2024, taxpayers disclosed previously unreported overseas holdings amounting to ₹29,208 crore. The 2025 iteration shall be launched by CBDT from November 28, 2025 through targeted SMSs and emails advising identified taxpayers to review and revise their returns by December 31, 2025, to avoid penal consequences.

An analysis of the Automatic Exchange of Information (AEOI) data for FY 2024-25 (Calendar Year 2024) revealed high-risk cases where offshore assets appeared to exist but were not declared in Income Tax Returns (ITRs) for AY 2025-26.

The NUDGE initiative is designed to facilitate accurate reporting in Schedule Foreign Assets (FA) and Schedule Foreign Source Income (FSI) of ITRs as required under the Income Tax Act, 1961 and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Also Read: CBDT Increases Exemption Limit to ₹20 Lakh for Undisclosed Foreign Assets [Read Instruction]

PRUDENT approach

The CBDT stated that the latest campaign adopts a PRUDENT approach.

P - Professionalism,

R - Responsible & Responsive

U - Understanding (laws, transactions & business)

D - Dedication & Due Diligence / Data-based decision making

E - Effective enforcement (with empathy)

N - Non-intrusive administration (taxpayer-centric, compliance-nudging)

T - Technology (technology-based tax administration)]

During the first phase of the NUDGE campaign launched on November 17, 2024, the CBDT had identified taxpayers reported by foreign jurisdictions under the AEOI framework for holding undeclared offshore assets, resulting in 24,678 taxpayers revisiting their filings and declaring foreign-source income of ₹1,089.88 crore alongside the disclosed assets.

The CBDT has also reaffirmed that India continues to receive information on foreign financial accounts of Indian residents through Common Reporting Standard (CRS) arrangements with partner jurisdictions and from the United States under FATCA (Foreign Account Tax Compliance Act). These inter-country data streams help detect potential non-disclosures and enable non-intrusive compliance nudges.

Also Read: CBDT Issues Advisory on Enhancing Tax Transparency in Foreign Assets and Income under CRS & FATCA

Reiterating its commitment to transparency and self-compliance, the CBDT has urged taxpayers to use this opportunity to voluntarily rectify omissions in their ITRs and ensure full disclosure of foreign assets and income.

For further guidance on CRS, FATCA and relevant ITR schedules, taxpayers have been advised to visit the official portal at www.incometax.gov.in