The Central Board of Direct Taxes (CBDT) has announced the second NUDGE campaign to help taxpayers correct and update their returns.
From 28 November 2025, eligible taxpayers will receive SMS and email alerts advising them to review and revise their Income Tax Returns (ITRs) by 31 December 2025 to avoid penalties.
The campaign focuses on accurate reporting of foreign assets (Schedule FA) and foreign source income (Schedule FSI) in ITRs, which 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.
Why This Campaign Matters
CBDT uses advanced data analytics to make tax compliance simpler and more transparent.
The NUDGE initiative helps:
Reduce errors in tax reporting
Encourage voluntary compliance
Build a trust-oriented interface between taxpayers and the tax department
This move aligns with the Viksit Bharat vision, promoting accountability, transparency, and a culture of timely reporting.
Eligible taxpayers are advised to take this opportunity to ensure complete compliance.
For more details on CRS, FATCA, Schedule FA, and Schedule FSI, visit the official portal: www.incometax.gov.in.
Previous NUDGE Campaign and Impact
The first NUDGE campaign, launched on 17 November 2024, targeted taxpayers holding unreported foreign assets under the Automatic Exchange of Information (AEOI) framework.
The results were significant:
24,678 taxpayers revised their returns, including some not directly nudged
Rs 29,208 crore worth of foreign assets were disclosed
Rs 1,089.88 crore of foreign income was reported
CBDT receives data on foreign assets of Indian residents from partner jurisdictions through Common Reporting Standards (CRS) and from the US under FATCA.
This information helps identify discrepancies and guide taxpayers toward timely and accurate compliance.
