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Taxation Central Ministry of Finance Income Tax Act, 1961

CBDT launches 2nd phase of NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets

27-Nov-2025 | NA

CBDT (Income Tax) has launched the second phase of its "Nudge" initiative targeting taxpayers with undisclosed foreign assets and income. This is based on information Indian government received from other foreign governments as part of the international OECD framework.

The success of the first NUDGE initiative, launched on 17th November 2024, set the stage for this second phase. That campaign encouraged thousands of taxpayers to revisit their filings. As a result, 24,678 taxpayers updated their returns, Foreign assets worth Rupees 29,208 crore were disclosed, Foreign-source income worth Rupees 1,089.88 crore was reported, and these results underscore the effectiveness of non-intrusive, data-driven nudges in promoting voluntary compliance.

The CBDT urges all taxpayers who receive SMS or email alerts to take prompt action. Reviewing and rectifying ITRs before 31st December 2025 ensures full compliance and helps avoid mandatory penalties under the law.

For guidance on CRS, FATCA, Schedule FA, and Schedule FSI, taxpayers can visit the official Income Tax website.

The 2nd NUDGE initiative reaffirms the CBDT's commitment to building a forward-looking, technology-enabled, and trust-based tax ecosystem- one where voluntary compliance becomes the norm, not the exception.

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