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Foreign Asset Deadline Looms: Taxpayers Face Black Money Act
27 Nov
Summary
- Taxpayers with foreign assets must review returns by Dec. 31, 2025.
- Non-compliance risks severe penalties under the Black Money Act.
- A previous 'Nudge Campaign' saw significant disclosures of foreign assets.
The Central Board of Direct Taxes (CBDT) has issued a crucial directive for taxpayers holding international investments, setting a December 31, 2025 deadline for reviewing and correcting income tax returns. Those failing to comply risk substantial financial penalties under the Black Money Act.
Beginning November 28, targeted taxpayers identified through Automatic Exchange of Information (AEOI) data will receive notifications. This proactive 'Nudge Campaign' aims to ensure accurate reporting of foreign assets and income, which are statutory requirements under the Income-tax Act, 1961.
Past initiatives demonstrate the campaign's effectiveness, with a previous 'Nudge Campaign' in November 2024 leading to disclosures of foreign assets valued at Rs 29,208 crore and foreign income of Rs 1,090 crore. The CBDT's current approach emphasizes technology-enabled voluntary compliance to foster accountability.
