Press Release dated November 27, 2025
Applicable Act/Rule – Income-tax Act, 1961
CBDT receives foreign financial asset data of Indian residents under CRS and FATCA. Using this information, high-risk cases are identified where foreign assets reported by partner jurisdictions do not match disclosures made in filed ITRs
CBDT is launching the second NUDGE initiative to push voluntary compliance among taxpayers flagged for possible non-disclosure of foreign assets or foreign-source income. From November 28, 2025, SMS and email alerts will be sent advising such taxpayers to re-examine their filings and, if required, revise their ITRs by December 31, 2025 to avoid penalties. The focus is on ensuring correct reporting under Schedule FA and Schedule FSI, as required under the Income-tax Act and the Black Money Act. The initiative uses advanced data analytics to nudge taxpayers, reduce information gaps, and reinforce a transparent, non-intrusive compliance environment aligned with the government’s broader push for voluntary compliance.
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