March 6, New Delhi, India: The Central Board of Direct Taxes (CBDT) “nudging campaign” has yielded significant results with 30,161 taxpayers declaring foreign assets worth over Rs 29,000 crore, government sources told

According to the sources, 24,678 taxpayers reviewed their ITRs and 5,483 taxpayers filed belated returns for AY 2024-25, declaring foreign assets worth Rs 29,208 crore and additional foreign income of Rs 1,089.88 crore.

In addition, 6,734 taxpayers changed from resident to non-resident status.

Approximately 62% of encouraged taxpayers voluntarily revised their ITRs to report overseas income and assets, indicating a good response overall.

Between AY 2021–2022 and AY 2024–2025, the number of taxpayers voluntarily declaring overseas assets and income increased from 60,000 to 2,31,452. In comparison to Assessment Year (AY) 2023-24, voluntary disclosures increased by a noteworthy 45.17 percent this year as a result of intensive outreach and awareness campaigns.

Financial data on overseas accounts and revenue from interest and dividends generated outside of India was sent to India in September 2024 from more than 108 nations.

Using this data received under the automatic exchange of information, the Central Board of Direct Taxes (CBDT) launched a Compliance-Cum-Awareness Campaign on November 17, 2024, urging taxpayers to declare their foreign assets and income in revised ITRs for Assessment Year (AY) 2024-25.

This campaign used the data obtained via CRS and FATCA in a system-driven and taxpayer-friendly manner.

The Income Tax Department (ITD) facilitated taxpayers by providing a step-by-step guide to filling Schedule Foreign Assets and Schedule Foreign Source Income, along with explanatory materials to help them understand the information received under these frameworks.

19,501 taxpayers with large overseas account balances or substantial foreign income from interest or dividends above a certain threshold received emails and SMS as part of the campaign.

In order to appropriately represent their overseas assets and income, taxpayers were asked in this letter to amend their Income Tax Returns (ITRs).

Furthermore, 30 webinars, seminars, and outreach events were held around India, directly interacting with over 8,500 attendees. Pamphlets, brochures, and elaborate Samvaad sessions on social media further amplified awareness.

Government sources said that at the heart of this campaign lies the Trust First approach, which prioritises voluntary compliance over enforcement. Instead of immediate verification or intrusive actions, the Department has trusted taxpayers first, giving them ample opportunity to make true and complete disclosures of their foreign income and assets.

They said by fostering transparency, education, and cooperation, the initiative has reinforced a compliance-friendly tax environment, ensuring that taxpayers can correct their filings proactively before any formal verification measures are undertaken.

“This shift towards a collaborative and trust-driven approach marks a significant step in strengthening India’s tax compliance framework while maintaining fairness and encouraging responsible financial disclosures,” a source said.

India is one of the early adopters of Common Reporting Standards (CRS) and has been receiving data since 2018 for the calendar year 2016 and onwards.

More than 125 countries have agreed to share financial information of individuals linked to other jurisdictions on an automatic basis, including details of accounts held, account balances, dividends, interest received, and gross payments.

A similar exchange occurs with the US under the Inter-Governmental Agreement pursuant to the Foreign Accounts Tax Compliance Act (FATCA), 2010.