CBDT’s nudge leads to disclosure of over ₹29,000 crore of foreign assets

Subscribe to enjoy similar stories. NEW DELHI : A compliance drive launched in November 2024 by the Central Board of Direct Taxes (CBDT), based on financial information received from foreign tax authorities, has led to more than 30,000 persons declaring previously unreported foreign assets worth ₹29,208 crore and additional foreign income of ₹1,090 crore, a person with direct knowledge of the matter said.

The information received in September 2024 from over 108 countries included foreign accounts and income in the form of interest and dividends earned outside India, the person said on the condition of anonymity. Moreover, 6,734 taxpayers revised their residential status from resident to non-resident as a result of the nudge, the person said.

India has been receiving details of assets and income parked abroad by Indians under different information-sharing frameworks, such as the Organization for Economic Cooperation and Development’s common reporting standards (CRS) and a data-sharing deal with the US government. Under the CRS, India has received information for the period starting 2016.

The deal with the US is based on the US government’s Foreign Accounts Tax Compliance Act (FATCA) of 2010. Using this data, the CBDT urged taxpayers to declare their foreign assets and income in revised income tax returns for the assessment year 2024-25, the person said, adding the authority followed a taxpayer-friendly approach and offered a step-by-step guide to reporting these assets and income.

Over 19,500 taxpayers with high foreign account balances or significant foreign income from interest or dividends were sent text messages and emails requesting that they revise their tax returns to reflect these. As a result, 24,678 taxpayers