New Delhi: The Central Board of Direct Taxes (CBDT) on Thursday announced the launch of the second phase of its “NUDGE” campaign, under which high-risk taxpayers will receive SMS and email alerts advising them to review and, if necessary, revise their income-tax returns on or before December 31, 2025, to avoid penal action.

According to the CBDT, an analysis of Automatic Exchange of Information (AEOI) data for FY 2024–25 (CY 2024) has identified individuals who appear to hold foreign assets that were not disclosed in their Income-tax Returns (ITRs) filed for AY 2025–26. The campaign, beginning on November 28, is aimed at ensuring accurate reporting in the Schedule Foreign Assets (FA) and Foreign Source Income (FSI) sections of ITRs.

The first NUDGE initiative, launched on November 17, 2024, focused on taxpayers flagged by foreign jurisdictions under the AEOI framework for possessing undisclosed overseas assets in their ITRs for AY 2024–25. The effort saw significant compliance improvements, 24,678 taxpayers, including many who were not directly notified, revisited their returns and disclosed foreign assets worth ₹29,208 crore and foreign-source income of ₹1,089.88 crore.

“Accurate and complete disclosure of foreign assets and income is a statutory requirement under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015,” the Finance Ministry said in a statement.

The CBDT said it continues to deploy advanced data analytics to ease compliance, reduce information gaps and create a transparent, trust-oriented interface with taxpayers. The NUDGE initiative aligns with the government’s Viksit Bharat vision by promoting accountability, transparency and voluntary compliance.

The Board reiterated that the initiative reflects its shift towards a technology-driven, non-intrusive and taxpayer-centric approach that encourages accurate reporting and strengthens revenue mobilisation. It has advised all eligible taxpayers to make use of the opportunity to ensure full compliance with statutory reporting requirements.

IANS