India Flags 25,000 High-Risk Foreign Asset Cases

The Central Board of Direct Taxes (CBDT) and Income Tax Department have launched a new drive targeting approximately 25,000 taxpayers believed to have undisclosed foreign assets or income. :contentReference

What Triggered the Crackdown?

The move follows data analysis under the Automatic Exchange of Information (AEOI) and other information exchange frameworks — especially the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA). Based on that data, authorities identified “high-risk cases” where foreign assets or income likely exist, but were not reported in returns for Assessment Year 2025-26. :contentReference

What Happens Next: Notices & Disclosure Window

Starting November 28, the department will send SMS and e-mail alerts to these flagged taxpayers — giving them until December 31, 2025 to review and revise their income-tax returns. :contentReference

Taxpayers may need to declare details under Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income) in their ITRs. Failure to comply may invite substantial penalties under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. :contentReference

Why This Matters — What the First Round Revealed

In the first phase of this campaign (launched Nov 2024), around 24,678 taxpayers revised their returns and disclosed foreign assets totaling ₹29,208 crore along with foreign-source income of ₹1,089.88 crore.

By June 2025, about 1,080 cases had been assessed — leading to tax demands worth approximately ₹40,000 crore. Searches in major cities such as Delhi, Mumbai and Pune — especially targeting overseas holdings (e.g. in Dubai) — uncovered several instances of undeclared assets and income. 

Implications for Taxpayers

This drive signals increased scrutiny on foreign holdings and underscores global regulatory cooperation — making it imperative for Indians with overseas assets or income to ensure full disclosure. It serves both as an opportunity and a warning: those who come clean promptly may avoid penalties; those who don’t risk significant fines and scrutiny. 

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