The Central Board of Direct Taxes (CBDT) has launched the Second Phase of the “NUDGE” Campaign aimed at encouraging voluntary and accurate disclosure of foreign assets and foreign-sourced income in Income Tax Returns (ITR) for Assessment Year 2025-26.
This campaign directly impacts NRIs, returning NRIs (RNORs), resident individuals holding global assets, expats living in India, and anyone who may have missed reporting their foreign bank accounts, investments, ESOPs, brokerage holdings, properties or overseas income in Schedule FA & Schedule FSI of their tax returns.

What is the CBDT 2nd NUDGE Campaign?

Under this campaign starting 28 November 2025, CBDT is issuing SMS and email alerts to taxpayers identified—through global data exchange systems such as CRS (Common Reporting Standard) and FATCA—as having undisclosed foreign assets or overseas income.

Key Intent of the Initiative

• Encourage taxpayers to review and voluntarily revise ITR filings
• Improve accuracy in reporting international financial assets
• Support data-driven tax administration and transparency
• Offer a final opportunity before stringent penalty and prosecution actions

Important Deadline

Last Date to Revise ITR for AY 2025-26: 31 December 2025

Why This Matters? — Penalties & Legal Consequences

Failure to disclose foreign assets is treated as a serious tax offence under:

• Income-tax Act, 1961
• Black Money (Undisclosed Foreign Income & Assets) Act, 2015

Possible Consequences

With financial information being automatically exchanged between India and 100+ countries, chances of mismatch detection are extremely high.

Who Needs to Take Immediate Action?

This update is particularly relevant for:

NRIs who recently returned to India & became Resident / RNOR
Individuals holding foreign assets such as

• Overseas bank accounts, mutual funds, shares, ETFs
• US/UK brokerage accounts (Robinhood, Fidelity, Vanguard, Schwab, TD Ameritrade etc.)
• ESOPs / RSUs from foreign employers
• Foreign pension (401(k), Roth IRA, Superannuation, 403(b), RESP etc.)
• Overseas immovable property income or sale proceeds
• International crypto / digital assets

Residents claiming DTAA or Foreign Tax Credit
Expats earning income outside India while resident

What You Should Do Now - Compliance Checklist

• Review all overseas assets as on 31 March 2025
• Verify details reported in Schedule FA, Schedule FSI & Form 67 (FTC)
• Ensure accurate reporting of repatriation and capital gains
• File a revised ITR before 31 December 2025
• Maintain documentation for audit-readiness
• Consult a global-tax expert for validation

How Dinesh Aarjav & Associates Assists NRIs

We are a 25+ year experienced global tax advisory firm, specializing in NRI Tax Filing, Cross-Border Taxation & Foreign Asset Disclosure Compliance across India, USA, UK, Canada & UAE.

Our Services for NRIs Include

• Foreign Asset Disclosure & Schedule FA Preparation
• Revised ITR Filing & Response to NUDGE Notifications
• DTAA Advisory & Foreign Tax Credit (Form 67) Support
• CRS-FATCA Data Reconciliation & Explanation Reports
• RNOR Status Planning & Tax Optimization
• Capital Gain Reporting on US/UK Shares, ESOP, RSU, PFIC
• Support for Overseas Property Sale & Repatriation (15CA/CB)

Frequently Asked Questions (NRI-Focused SEO Section)

1. What is the CBDT NUDGE Campaign?

A compliance initiative encouraging voluntary accurate reporting of foreign assets and income.

2. Who will receive NUDGE SMS/emails from CBDT?

Taxpayers with a mismatch between ITR filing and data obtained through CRS/FATCA exchanges.

3. Do NRIs need to report foreign assets?

NRIs don’t need Schedule FA unless they become Resident or RNOR. Returning NRIs must be careful.

4. What happens if foreign assets are not disclosed?

Heavy penalties and possible prosecution under the Black Money Act 2015.

5. What is the last date to revise ITR for AY 2025-26?

31 December 2025

Conclusion

The CBDT 2nd NUDGE Campaign is a strong signal that tax transparency is increasing globally, and non-disclosure of foreign assets is no longer an option. NRIs, NRI returning to india and globally exposed taxpayers should take proactive steps to correct disclosures and avoid penalties.

If you need expert assistance in ITR revision, Schedule FA preparation, or NRI tax advisory services, our team is ready to help.