{"id":350835,"date":"2025-11-28T15:59:02","date_gmt":"2025-11-28T10:29:02","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=350835"},"modified":"2025-11-28T15:59:02","modified_gmt":"2025-11-28T10:29:02","slug":"nudge-initiative","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/nudge-initiative\/","title":{"rendered":"NUDGE Initiative"},"content":{"rendered":"<p><strong>News: <\/strong>The Central Board of Direct Taxes (CBDT) is launching the second NUDGE Initiative based on its analysis of Automatic Exchange of Information (AEOI) data for FY 2024\u201325.<\/p>\n<h2>About NUDGE Initiative<\/h2>\n<figure id=\"attachment_350851\" aria-describedby=\"caption-attachment-350851\" style=\"width: 326px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-350851\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/11\/Source-ET-4.jpg?resize=326%2C312&#038;ssl=1\" alt=\"NUDGE Initiative\" width=\"326\" height=\"312\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/11\/Source-ET-4.jpg?resize=300%2C287&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/11\/Source-ET-4.jpg?w=675&amp;ssl=1 675w\" sizes=\"auto, (max-width: 326px) 100vw, 326px\" \/><figcaption id=\"caption-attachment-350851\" class=\"wp-caption-text\">Source &#8211; ET<\/figcaption><\/figure>\n<ul>\n<li><b>Full form: <\/b>\u201cNon-intrusive Usage of Data to Guide and Enable (<strong>NUDGE<\/strong>)\u201d initiative<\/li>\n<li><strong>Implementing agency:<\/strong> Central Board of Direct Taxes (CBDT)<\/li>\n<li><strong>Nodal Ministry:<\/strong> Ministry of Finance<\/li>\n<li><strong>Aim:<\/strong> To strengthen <strong>voluntary tax compliance through data-driven, non-intrusive communication.<\/strong><\/li>\n<li><strong>Focus:<\/strong> It focuses on helping taxpayers correctly disclose <strong>foreign assets and foreign-source income<\/strong>.<\/li>\n<li><strong>First NUDGE Campaign:<\/strong> The first NUDGE Campaign was launched in <strong>November 2024<\/strong>.\n<ul>\n<li>It targeted taxpayers flagged under <strong>Automatic Exchange of Information (AEOI)<\/strong> for not reporting foreign assets in AY 2024\u201325.<\/li>\n<li><strong>It resulted in:<\/strong> <strong>24,678 taxpayers<\/strong> revising returns, disclosure of <strong>\u20b929,208 crore<\/strong> worth foreign assets and declaration of <strong>\u20b91,089.88 crore<\/strong> foreign-source income.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Second NUDGE Campaign:<\/strong> The second NUDGE Campaign was <strong>launched in November 2025<\/strong>.\n<ul>\n<li>Under the campaign,<strong> SMSs and emails will be issued to such taxpayers whose foreign assets appear to exist<\/strong> but have not been reported in the ITRs filed for AY 2025-26.<\/li>\n<li>This is to advise them <strong>to review and revise their returns on or before 31<sup>st<\/sup>\u00a0December 2025<\/strong> to avoid penal consequences.<\/li>\n<li>The campaign aims<strong> to facilitate correct reporting in Schedule Foreign Assets (FA) and Foreign Source Income (FSI) in ITRs. <\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Note:<\/strong> Accurate and complete <strong>disclosure of foreign assets and income<\/strong> is a <strong>statutory requirement<\/strong> under the <strong>Income-tax Act, 1961<\/strong>\u00a0and the <strong>Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.<\/strong><\/li>\n<\/ul>\n<h2>About Automatic Exchange of Information (AEOI)<\/h2>\n<ul>\n<li>It is a system for the <strong>regular exchange of financial account information<\/strong> between <strong>tax authorities of different countries<\/strong> under international agreements developed by the <strong>Organisation for Economic Co-operation and Development (OECD)<\/strong>.<\/li>\n<li><strong>Objective:<\/strong> To <strong>promote global tax transparency<\/strong> and <strong>curb tax evasion<\/strong> by enabling jurisdictions to access information about their residents\u2019 foreign financial assets.<\/li>\n<li>The framework <strong>operates through major international standards<\/strong> such as\n<ul>\n<li>Common Reporting Standard<strong> (CRS) <\/strong><\/li>\n<li>Foreign Account Tax Compliance Act <strong>(FATCA)<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>These frameworks require<strong> financial institutions to<\/strong> <strong>identify and report accounts<\/strong> held by specified individuals and entities to their respective tax authorities.<\/li>\n<li>AEOI significantly aids tax administrations in <strong>detecting undisclosed offshore assets<\/strong>, <strong>recovering tax revenue<\/strong>, and <strong>encouraging voluntary compliance<\/strong>.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Central Board of Direct Taxes (CBDT) is launching the second NUDGE Initiative based on its analysis of Automatic Exchange of Information (AEOI) data for FY 2024\u201325. About NUDGE Initiative Full form: \u201cNon-intrusive Usage of Data to Guide and Enable (NUDGE)\u201d initiative Implementing agency: Central Board of Direct Taxes (CBDT) Nodal Ministry: Ministry of&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/nudge-initiative\/\">Continue reading <span class=\"screen-reader-text\">NUDGE Initiative<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,956,12039],"tags":[11872,3590],"class_list":["post-350835","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-schemes-and-programs","category-knolls","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/350835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=350835"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/350835\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=350835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=350835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=350835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}