Declare Your Foreign Assets Now! Income Tax Department Sends SMS and Emails to 25,000 Taxpayers

The Income Tax Department is sending SMS and emails to over 25,000 individuals for not disclosing their foreign assets, such as bank accounts, properties, or shares, in their Income Tax Return (ITR) for Assessment Year (AY) 2025-26.

Based on the data received from foreign countries through the Automatic Exchange of Information (AEOI) system, the department found many cases where the foreign assets were not declared in the ITRs. Therefore, the Central Board of Direct Taxes (CBDT), in its first phase ‘Nudge’ campaign, will suggest that the taxpayers revise their returns before December 31, 2025, to avoid penalties. The second phase of the NUDGE campaign will start in mid-December, covering more taxpayers.

If you are also one of those individuals who receive such SMS or email, it is important to act on it. Ignoring the alert could lead to notices and even a penalty of Rs 10 lakh, a tax of 30% and an extra penalty of 300% of the tax due under the Black Money Act.

Taxpayers must file a Revised ITR before December 31, 2025, to avoid a penalty or prosecution. It is important to check any SMS and emails received from the Income Tax Department, and if you have never disclosed foreign assets in Schedule FA, this is your last reminder to fix it before the department takes strict action.