The Ministry of Finance (MoF) on November 27, 2025, notified regarding the launch of the 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets.
The following has been stated namely: -
• CBDT has identified high-risk taxpayers whose ITRs for AY 2025-26 did not report foreign assets or foreign-source income, based on data from the Automatic Exchange of Information (AEOI) for FY 2024–25.
• It states that from November 28, 2025, those taxpayers will receive SMSs/emails under the “NUDGE” campaign, advising them to review and, if needed, revise their returns by December 31, 2025, to avoid penalties.
• The campaign urges accurate disclosure under Schedule FA (foreign assets) and Schedule FSI (foreign-source income), which is mandated under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
• This second phase of NUDGE builds on the earlier 2024 campaign, and reflects CBDT’s “PRUDENT” approach — using data-driven, non-intrusive, taxpayer-centric mechanisms to enhance voluntary compliance and transparency.
• The initiative targets correct reporting, aims to reduce undisclosed foreign income/assets, and strengthens the trust-based relationship between taxpayers and tax authorities
[Press release id: 2195261]
