CBDT ‘Nudge’ drive: 1.25 crore updated ITRs, Rs 9,494 cr extra tax

The Central Board of Direct Taxes' "Nudge" campaign has resulted in 1.25 crore updated income tax returns, yielding Rs 9,494 crore in additional tax payments, the government said.The campaign urges taxpayers to review and revise their returns, focusing on Schedule FA (foreign assets) and foreign source income disclosures. It uses pre-identified data to alert taxpayers through SMS and email about potential mismatches.The initiative emphasizes voluntary self-correction, giving taxpayers time to fix discrepancies before penalties are initiated. It covers foreign bank accounts, overseas property, foreign securities, trusts and income from investments or employment abroad.The campaign aligns with India's push toward technology-backed, non-intrusive compliance. Officials say the approach reduces the enforcement burden while improving transparency in foreign asset reporting. The campaign focuses on Schedule FA and foreign source income disclosures, where mismatches often occur. Taxpayers get SMS and email prompts to self-correct before facing consequences under laws like the Black Money Act.
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