Tax Department Launches NUDGE Campaign to Prompt Taxpayers to Report Foreign Assets
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The Indian income tax department is set to roll out a second NUDGE campaign, starting this Friday, to remind taxpayers about the need to declare foreign assets acquired in the previous fiscal year. The campaign aims to encourage individuals to report any foreign assets by December 31, to avoid facing penalties. This move comes after the Central Board of Direct Taxes (CBDT) identified high-risk cases where foreign assets were not reported in income-tax returns. The campaign will send SMSs and emails to taxpayers who have not yet disclosed their foreign assets, advising them to review and revise their returns before the deadline. The first NUDGE campaign, launched in November 2024, resulted in 24,678 taxpayers revising their returns and disclosing foreign assets worth ₹29,208 crore, along with foreign-source income of ₹1,089.88 crore. The CBDT's 'PRUDENT' approach, which emphasizes professionalism, responsibility, understanding, dedication, effective enforcement, non-intrusive administration, and technology-based tax administration, aims to simplify compliance processes and promote transparency. By adopting a data-driven and non-intrusive approach, the CBDT seeks to encourage voluntary compliance and improve revenue mobilization. The CBDT receives information about foreign financial assets from partner jurisdictions, which helps in identifying potential discrepancies and guiding taxpayers towards accurate compliance. The NUDGE campaign reflects the department's commitment to a forward-looking, technology-enabled, and trust-based tax administration, promoting accurate reporting and enhancing revenue mobilization.
