Income Tax 'Nudge' Campaign Targets High-Risk Non-Disclosure of Foreign Assets

The Income Tax department is targeting 25,000 high-risk individuals through SMS/emails for non-disclosure of foreign assets in their ITRs for AY 2025-26. This is part of a 'nudge' campaign to ensure compliance. The initiative previously led to significant disclosures of foreign assets and income.

The Income Tax department has launched an initiative to send SMS and emails to around 25,000 individuals identified as high-risk for failing to disclose foreign assets. These individuals had omitted such details in their income tax returns (ITRs) for the assessment year 2025-26, according to sources.

The identification of these high-risk cases stems from data received from foreign jurisdictions via the Automatic Exchange of Information (AEOI) framework. In its first phase, the Central Board of Direct Taxes (CBDT) aims to encourage these taxpayers to file revised ITRs by December 31, 2025, to avoid penalties.

The campaign previously prompted over 24,000 taxpayers to correct their ITRs and declare foreign assets worth Rs 29,208 crore. The department continues to gather information through various international reporting standards, positioning this effort as crucial in enhancing the tax compliance ecosystem.

(With inputs from agencies.)