Submit RFP

      The Central Board of Direct Taxes (CBDT) announced the launch of the second Non-intrusive Usage of Data to Guide and Enable (NUDGE) campaign on 27 November 2025.1

      Through this initiative, CBDT encourages taxpayers to correctly report foreign assets and foreign sourced income by revising their income tax returns for financial year (FY) 2024-25 on or before 31 December 2025.

      The first NUDGE campaign launched on 17 November 2024 targeted select taxpayers that were reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework as holding foreign assets that were not disclosed in their ITRs for FY 2023-24.

      The second campaign reflects CBDT’s commitment to a forward-looking, technology-enabled, and trust-based tax administration focused on promoting accurate reporting and enhancing revenue.

      WHY THIS MATTERS

      The development has significant implications for globally mobile employees / local employees who are ordinary residents in India. The campaign leverages international data exchange frameworks to identify cases where Indian residents may have underreported or failed to disclose foreign assets or income. The non-intrusive approach is designed to foster trust and minimize disruption while enhancing compliance.

      Background

      • As per the provisions of the Income-tax Act, 1961 (the “IT Act”)

        • Taxpayers qualifying to be a Resident and Ordinary Resident (ROR) are liable for tax in India on their global income, subject to relief under Double Taxation Avoidance Agreement(s).

        • Such taxpayers are required to disclose details of their foreign assets and foreign income in the ITR filed in India.
           
      • Misreporting of such income, furnishing of inaccurate particulars may incur penalties under the IT Act.

      • Nondisclosure of foreign assets and foreign sourced income also attracts penalty and prosecution as per the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Black Money Act).

      Key Highlights

      NUDGE Campaign

      • The second edition of the NUDGE campaign launched by CBDT is a non-intrusive campaign aimed at improving voluntary compliance in relation to disclosure and reporting of foreign assets and income in the ITR.

      • CBDT receives information relating to foreign financial assets of Indian residents from partner jurisdictions pursuant to Common Reporting Standards (CRS) and from the United States of America under the Foreign Account Tax Compliance Act (FATCA), which assists in identifying potential discrepancies and in guiding taxpayers in timely and accurate compliance.

      • Based on the analysis of AEOI information, CBDT has identified high-risk cases for FY 2024-25, where foreign assets appear to exist but have not been reported in the ITR.

      • CBDT has launched a second NUDGE initiative under which SMSs and e-mails are being issued from 28 November 2025 to such taxpayers, advising them to review and revise their ITRs on or before 31 December 2025 to avoid penal consequences.

      • The campaign aims to facilitate accurate reporting in Schedule FA and Schedule FSI of the ITR, which is a statutory requirement under the IT Act and the Black Money Act.

      • CBDT advises all eligible taxpayers to utilise this opportunity to ensure complete compliance with statutory reporting requirements.

      KPMG INSIGHTS

      As per KPMG in India, the NUDGE campaign launched by the CBDT is a welcome initiative, considering its non-intrusive nature.

      Steps to Consider

      Taxpayers who might have inadvertently missed reporting or inaccurately reported foreign assets or foreign income may utilise this opportunity to revise their ITRs filed in India for FY 2024-25 by 31 December 2025 to avoid penal consequences.

      If assignees and/or their programme managers have any questions or concerns about the scope of the update, its application and potential impacts, and appropriate next steps, they should consult with their qualified tax professional or a member of the GMS tax team with KPMG in India (see the Contacts section).

      FOOTNOTE

      1  “CBDT launches 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets,” published by Central Board of Direct Taxes (CBDT), Government of India on 27 November 2025.

      RELATED RESOURCE

      This article is excerpted, with permission, from "CBDT launches Compliance cum Awareness campaign for the AY 2024-25 for proper disclosure of foreign assets and income in the ITR," in Tax Flash News (19 November 2024), a publication of the KPMG International member firm in India.

      Contacts

      Parizad Sirwalla
      Parizad Sirwalla

      Partner and National Head – Tax, Global Mobility Services

      KPMG in India

      More Information

      pdf

      Download PDF

      Download and save the PDF version of this GMS Flash Alert.

      Download

      GMS Flash Alert reports on recent global mobility-themed developments from around the world to help you better understand what has changed and what that means for you.

      Subscribe now

      GMS Flash Alert

      Shedding light on evolving policies affecting international assignees and employers, helping make sense of it all.

      Visit GMS Flash Alert home
      alt
      Disclaimer

      The information contained in this newsletter was submitted by the KPMG International member firm in India.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

      © 2025 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.