MONEY
CBDT launches NUDGE 2.0 to boost tax compliance on foreign assets, income
- IBJ Bureau
- Nov 28, 2025
Intensifying its efforts to curb tax evasion, the Central Board of Direct Taxes (CBDT) has launched the second phase of its NUDGE initiative to strengthen voluntary compliance by taxpayers on foreign assets and income. The exercise will begin with around 25,000 high-risk cases identified through Automatic Exchange of Information (AEOI) data for 2024-25.
From November 28, 2025, SMS and email alerts are be sent to the flagged taxpayers, advising them to review and revise their income tax returns (ITRs) for the assessment year 2025-26 by December 31, 2025. Non-compliance may invite severe penalties under the Income-Tax Act and the Black Money Act, the tax department has said.
The first phase of the exercise will focus on the highest-risk cases, while the second phase, starting mid-December, will expand the NUDGE campaign to cover additional taxpayers. Large corporate entities are also being brought on board to sensitise employees, who may have foreign assets that remain undisclosed in their returns.
The new initiative follows the first NUDGE campaign launched in November 2024, which had led nearly 25,000 taxpayers to revise their returns and disclose over Rs 29,000 crore in foreign assets.
This time around, the department has additionally sought support from industry body Institute of Chartered Accountants of India and professional associations to raise awareness about mandatory reporting in Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income), emphasising that non-disclosure attracts stringent consequences.
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