Received an income tax notice for foreign assets? Don’t panic. Just revise your ITR before December 31

Many taxpayers have recently received income tax notices seeking details of foreign assets, triggering concern and confusion. Tax experts, however, advise that such notices are often routine and can be addressed by revising the income tax return (ITR) within the prescribed deadline of December 31, provided the disclosure is accurate and complete.

Taxpayers who have overseas investments that were not disclosed in their income tax returns for AY 2025–26 should review their filings promptly.

The Central Board of Direct Taxes (CBDT) has rolled out the second phase of its NUDGE initiative, encouraging voluntary correction of returns to help taxpayers avoid penalties.

Even if you haven’t received a notice, you should still act proactively if you have foreign assets or income that wasn’t disclosed earlier. "With international data sharing in place, non-disclosure can surface later and lead to serious consequences," said Abhishek Soni.

Timely revision before 31st December 2025 is the safest and smartest step to stay compliant, avoid repeated notices, and prevent legal action.