income tax

The Income Tax Department is now ready to take major action in cases of hiding foreign assets. The department will soon start sending SMS and emails to about 25,000 individuals who have been placed in the “high-risk” category. These are those taxpayers about whom, based on information received from foreign countries, it has been indicated that they have financial assets abroad, but they did not declare these in the ITR for assessment year 2025-26.

Small and big taxpayers will be included

The department said that these high-risk cases have come to light from the analysis of data received under Automatic Exchange of Information (AEOI). This campaign has been named Nudge Campaign, in which in the first phase all these 25,000 people will be advised to fill the revised ITR. They will be asked to file Revised ITR by December 31, 2025, so that heavy fines and penalties can be avoided.

According to the ministry, in the second phase from mid-December, this campaign will be further expanded, so that the tax compliance situation can be strengthened. Big corporates, industry organizations and ICAI have also been involved in this campaign to make employees and taxpayers aware about the mandatory disclosure of foreign assets. Under the Black Money Act, there is a provision for strict punishment for not declaring foreign assets.

• Fine of Rs 10 lakh
• 30% tax
• Penalty up to 300% on tax amount

Notices were sent last year also

The department said that such notices were sent last year also, after which 24,678 taxpayers re-filed their ITR and disclosed foreign assets and income. The total value of these disclosures was estimated at Rs 29,208 crore, while foreign income was recorded at Rs 1,089.88 crore. According to sources, by June 2025, the department has completed the investigation of 1,080 cases and raised a tax demand of Rs 40,000 crore. Major revelations of undeclared foreign assets and investments have been made in the raids conducted in Delhi, Mumbai and Pune. CBDT gets information about foreign bank accounts and financial investments through CRS and FATCA. The department says that this step is an important effort towards ensuring accurate and timely disclosure of foreign assets to the taxpayers.