The Income Tax department on Thursday said it has identified “high-risk” cases in which individuals have not reported foreign assets in their income tax returns (ITRs) for Assessment Year (AY) 2025–26. Beginning November 28, the department will send SMS and email alerts to such taxpayers, advising them to file a revised return by December 31, 2025, to avoid penal action, according to PTI.Last year, similar nudges were issued to select taxpayers reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework for holding overseas assets not disclosed in their ITRs for AY 2024–25. That exercise prompted 24,678 taxpayers — including several who had not received alerts — to revisit their filings and disclose foreign assets worth Rs 29,208 crore and foreign-source income of Rs 1,089.88 crore.According to the department, “analysis of AEOI information for FY 2024–25 (CY 2024) has identified high-risk cases where foreign assets appear to exist but have not been reported in the ITRs filed for AY 2025–26.”The Central Board of Direct Taxes (CBDT) receives information on foreign financial assets of Indian residents from partner jurisdictions under the Common Reporting Standards (CRS) and from the United States under the Foreign Account Tax Compliance Act (FATCA). This data helps identify potential mismatches and guide taxpayers towards “timely and accurate compliance”, the statement said.The campaign aims to improve reporting under Schedule Foreign Assets (FA) and Foreign Source Income (FSI) in ITRs. Accurate disclosure of overseas assets and income is mandatory under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
