Income Tax department identifies cases of non-disclosure of foreign assets in ITRs

The Income Tax department on Thursday (November 27, 2025) said it has identified “high-risk” cases where individuals have not reported foreign assets in the income tax returns (ITRs) filed for Assessment Year (AY) 2025-26.

The Department will start sending SMS and emails to such taxpayers from November 28, advising them to file a revised ITR by December 31, 2025, to avoid penal consequences.

Last year, too, the department had sent SMS and emails to targeted taxpayers who had been reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework as holding foreign assets that were not disclosed in their income tax returns (ITRs) for AY 2024-25.

This ‘nudge’ initiative led to 24,678 taxpayers (including several who were not sent SMS and emails) revisiting their ITRs and disclosing foreign assets amounting to ₹29,208 crore, along with foreign-source income of ₹1,089.88 crore, in AY 2024-25.

“Analysis of AEOI for financial year 2024-25 [Calendar Year 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 Income Tax department said in a statement.

The Central Board of Direct Taxes (CBDT) receives information relating to foreign financial assets of Indian residents from partner jurisdictions pursuant to Common Reporting Standards (CRS) and from the United States under the Foreign Account Tax Compliance Act (FATCA).

This information assists in identifying potential discrepancies and guiding taxpayers towards timely and accurate compliance, it added.

The campaign aims to facilitate correct reporting in schedule foreign assets (FA) and foreign source income (FSI) in ITRs.

Accurate disclosure of foreign assets and income is a statutory requirement under the Income-tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.