What is the deadline for disclosing foreign assets in India?

The deadline for taxpayers to review and correct their income tax returns regarding foreign assets is December 31, 2025.

What are the consequences of not disclosing foreign assets to the CBDT?

Failure to disclose foreign assets can lead to severe financial penalties under India's Black Money Act.

How does the CBDT identify undeclared foreign assets?

The CBDT utilizes data from international partner jurisdictions through frameworks like CRS and FATCA to identify non-disclosed foreign assets.

Home / Business and Economy / Foreign Asset Deadline Looms: Taxpayers Face Black Money Act

Foreign Asset Deadline Looms: Taxpayers Face Black Money Act

27 Nov

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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.

Foreign Asset Deadline Looms: Taxpayers Face Black Money Act

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.