Finance Minister Nirmala Sitharaman announced that over 30,000 taxpayers in India have declared foreign assets and income worth Rs 30,300 crore following a ‘nudge’ campaign. The initiative involved sending targeted SMS and emails to encourage voluntary disclosures. The government aims to enhance tax compliance and transparency through such measures.
Finance Minister Nirmala Sitharaman announced that over 30,000 Indian taxpayers have voluntarily declared foreign assets and income worth Rs 30,300 crore after being prompted by a government-led ‘nudge’ campaign. This initiative aimed to improve tax compliance by encouraging taxpayers to review and correct their previous income tax returns.
The Income Tax Department launched this campaign by sending SMS and emails to approximately 19,501 selected taxpayers. These messages urged individuals to reassess their filings for the 2024-25 financial year, based on the information available with the tax authorities. The campaign was designed to encourage voluntary compliance, reducing the need for audits and enforcement actions.
According to Sitharaman, the initiative has proven to be an effective tool in ensuring tax transparency and accountability.
Through this nudge campaign, taxpayers were given an opportunity to rectify their returns without any enforcement pressure. As a result, we saw a substantial declaration of foreign assets and income.”
This move aligns with India’s broader strategy to combat tax evasion and ensure compliance with international tax regulations. The government has been actively working with global tax authorities to track undisclosed foreign income and assets.
Experts believe that such voluntary disclosure programs help build a more transparent tax system and deter future tax evasion. With increasing digitization and AI-driven tax monitoring, the authorities can detect discrepancies more efficiently.
The success of this campaign could pave the way for similar initiatives in the future, encouraging more taxpayers to come forward with their foreign income declarations and strengthening India’s financial regulatory framework.
