After the first edition of Non-intrusive Usage of Data to Guide and Enable (NUDGE) campaign, launched in November 2024, the Central Board of Direct Taxes (CBDT) has launched the second edition, targetting taxpayers whose foreign assets have not been declared by them.

In the first edition, taxpayers revised their returns and disclosed foreign assets amounting to Rs. 29,208 crore, along with foreign-source income of Rs. 1,089.88 crore.

In the second edition, mails and messages would be sent to taxpayers, ensuring they revised their returns on time.

To carry out these operations, the CBDT has signed agreements with several countries through which it has received information regarding foreign financial assets of residents of India.

“This information assists in identifying potential discrepancies and guiding taxpayers towards timely and accurate compliance,” the CBDT said. It added that an analysis of data received through this Automatic Exchange of Information (AEOI) framework for 2024-25 has identified high-risk cases where foreign assets “appear to exist but have not been reported in the ITRs filed for AY 2025-26”.

Additionally, the Income Tax Department is bringing in big companies whose employees have foreign assets that have not been disclosed by them, in order to sensitise their own employees.

The reviewing and revising of returns under the second edition will have to be done on or before December 31, 2025, to avoid penal consequences.
The campaign is expected to gain momentum from mid-December. – editor@nrifocus.com