The Central Board of Direct Taxes (CBDT) has announced the launch of the second NUDGE campaign.
Starting 28th November 2025, selected taxpayers will receive SMS and email alerts reminding them to review and revise their income tax returns before 31st December 2025 to avoid penalties.
The campaign focuses on accurate reporting of foreign assets (Schedule FA) and foreign source income (Schedule FSI) in Income Tax Returns (ITRs).
Proper disclosure of such assets and incomes is a legal requirement under the Income Tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
How NUDGE Helps Taxpayers
CBDT uses advanced data analytics to identify discrepancies and guide taxpayers towards compliance.
The initiative aims to:
Simplify compliance processes
Reduce information gaps
Promote transparency and voluntary reporting
Align with the vision of Viksit Bharat by fostering accountability and trust
Eligible taxpayers are advised to take this opportunity seriously and ensure their returns fully report foreign assets and income.
For detailed guidance on CRS, FATCA, Schedule FA, and Schedule FSI, taxpayers can visit the official CBDT website at www.incometax.gov.in.
Results from the First NUDGE Campaign
The first NUDGE campaign was launched on 17th November 2024.
It targeted taxpayers reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework for undisclosed foreign assets.
The results were significant:
24,678 taxpayers revisited their returns
Rs 29,208 crore of foreign assets were disclosed
Rs 1,089.88 crore of foreign-source income was reported
CBDT receives this information from partner countries through Common Reporting Standards (CRS) and from the US under FATCA.
This helps identify high-risk cases and ensures timely and accurate compliance.
