India Issues SMS Alerts to Overseas Asset Holders to Strengthen Tax Compliance
Thursday, 4 December 2025
Starting November 28, India’s Income Tax Department has begun sending SMS and email alerts to individuals who own property or maintain financial accounts abroad, including those in the UAE. The initiative is part of CBDT’s second-phase Nudge campaign, encouraging taxpayers to accurately report foreign assets and income using global data-sharing systems.
Key Highlights:
- India’s Income Tax Department launches SMS and email alerts for individuals with overseas assets, effective November 28.
- Part of the CBDT Nudge Campaign Phase 2, aimed at promoting accurate reporting and voluntary compliance.
- Alerts based on financial data shared through CRS (Common Reporting Standard) and FATCA across 100+ global jurisdictions.
- NRIs who are not tax residents in India are exempt from filing foreign asset details and will not receive alerts.
- Around 25,000 high-risk taxpayers identified for review after analysing AEOI data for FY 2024–25.
- Foreign asset declarations required in Schedule FA and Schedule FSI for those qualifying as Indian tax residents.
- Benefits of early compliance include smooth filings, accurate disclosures, and full alignment with international reporting standards.
- First Nudge campaign (2024) saw 24,678 taxpayers voluntarily disclose Dh12 billion in foreign assets, reflecting strong response.
- Dubai remains a key investment hub for Indians, accounting for 22% of Dubai property transactions in 2024, with investments of around Dh150 billion.
- Enhanced India–UAE information exchange ensures high transparency in overseas financial and property holdings.
- CBDT encourages corporates and professional bodies like ICAI to raise awareness around foreign asset reporting.
- Tax experts in Dubai recommend early review and updating of tax returns to ensure smooth compliance.
