India CBDT NUDGE Foreign Asset Compliance

The India — Central Board of Direct Taxes (CBDT) in India launched the second phase of its NUDGE campaign, starting November 28, 2025. This initiative targets high-risk taxpayers identified through Automatic Exchange of Information (AEOI) data for FY 2024-25 who appear to hold undisclosed foreign assets. The CBDT will send SMS and email alerts advising these taxpayers to review and revise their Income Tax Returns (ITRs) for AY 2025-26 by December 31, 2025, to avoid penal consequences. The campaign aims to strengthen voluntary compliance in reporting foreign assets and income, which is mandatory under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The first NUDGE campaign, launched in November 2024, resulted in significant disclosures of foreign assets and income. The CBDT emphasizes a technology-driven, non-intrusive approach to reduce information gaps and promote transparency, aligning with India's Viksit Bharat vision.