CBDT Urges Taxpayers to Disclose Their Foreign Assets or Income in ITRs for FY 2024-25 

The Income Tax Department has urged all taxpayers to report their Foreign Income or Assets in their Income Tax Returns (ITRs) for the Financial Year 2024-25 if they have not been disclosed yet. If you are also among such taxpayers, then immediately file a revised return by December 31, 2025. These recommendations have been given by the Central Board of Direct Taxes (CBDT) under the second phase of its NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign, implemented on November 28, 2025.

Through this campaign, CBDT is sending SMS and emails to the taxpayers falling under this category to recheck their returns. The aim of this initiative is to reinforce voluntary compliance in respect of Foreign Assets and provide taxpayers with motivation to provide correct information without any pressure.

Previously, CBDT released the first campaign on November 17, 2024. This campaign was focused on some selected and specific categories of taxpayers who had been reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework. Through the first campaign, approximately 24,678 had filed a revised return, leading to the disclosure of over Rs. 29,000 in foreign assets and over Rs. 1,000 crore in foreign income.

Now, numerous taxpayers have questions regarding why this much higher security. So this is because this year, the tax department has discovered several cases where taxpayers had filed their returns; however, they did not disclose foreign assets. As per the provisions of the Income Tax Act, every individual in india eligible to file an ITR is required to unearth information if they have any assets abroad and have earned income from them. It is crucial to know that disclosure of foreign assets or income is done on the basis of the calendar year and not the financial year. For instance, for the financial year 2024-25 (Assessment year 2025-26), the foreign asset or income disclosure will be done for the period from January to December 2025.

The tax department has also warned taxpayers possessing foreign assets or income to carefully file their income tax returns (ITRs), basically be careful while selecting the ITR form, as taxpayers under this category need to file forms like ITR-2 or ITR-3; these taxpayers cannot file ITR-1 and ITR-4. Schedule FA, Schedule FSI, Schedule TR, and Form 67 are also required, if applicable.