The Income Tax Department has reminded taxpayers to revise their Income Tax Returns (ITRs) by December 31, 2025, if they haven’t disclosed foreign income or overseas assets for the last financial year.
This move comes under the NUDGE campaign — Non-intrusive Usage of Data to Guide and Enable.
The campaign encourages taxpayers to voluntarily correct their returns before facing penalties.
What is the NUDGE Campaign?
The CBDT will send SMS and email reminders from November 28, 2025, to taxpayers who might have undisclosed foreign income.
This is the second edition of the campaign.
The first campaign in November 2024 successfully prompted 24,678 taxpayers to revise their returns, leading to the disclosure of:
Foreign assets: ₹29,208 crore
Foreign income: ₹1,089.88 crore
This shows how seriously the authorities are tracking overseas income.
Who Should Disclose Foreign Income?
Indian taxpayers must report all overseas assets and income in their ITRs.
This includes:
Investments in foreign stocks, mutual funds, or bank accounts
Any income earned abroad (interest, dividends, or capital gains)
The reporting is based on the calendar year (January 1 to December 31).
For example, for FY 2024-25 / AY 2025-26, the reporting should cover foreign income and assets in 2024.
How to File ITR with Foreign Income
Taxpayers with foreign assets should carefully:
Choose the correct ITR form (ITR-2 or ITR-3; ITR-1 and ITR-4 cannot be used for foreign income)
Complete Schedule FA (for foreign assets)
Complete Schedule FSI (for foreign income)
File Form 67 if claiming tax relief for taxes paid abroad
Accurate reporting is mandatory under:
Income Tax Act, 1961
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
Penalties for non-disclosure can run into lakhs of rupees.
How India Tracks Foreign Investments
India tracks overseas investments through:
Common Reporting Standard (CRS)
Foreign Account Tax Compliance Act (FATCA)
Information collected includes:
Account holder name and address
Tax identification number (TIN)
Account balances
Interest, dividends, and other income
The authorities are continuously monitoring undisclosed foreign assets, so revising your ITR now is crucial to avoid penalties.
Final Reminder
If you received foreign income or held overseas assets in 2024, make sure to revise your ITR by December 31, 2025 for AY 2025-26.
Following these steps now will help you avoid heavy fines and legal issues later.
