Income Tax Notice: Sometimes we think that minor tax-related negligence will go unnoticed, but that won’t be the case this time. The Income Tax Department has begun keeping a close watch on taxpayers who failed to disclose their foreign assets in their ITR 2025-26. This isn’t just a matter of lack of documentation, but rather of transparency and legal compliance.
Those concealing foreign assets will be on the radar, and the process of sending notices has begun
The Income Tax Department has officially announced that cases where foreign assets have not been included in the ITR have been identified. All these taxpayers have now been identified as “high-risk.” Starting November 28th, the department will begin sending special notices to these taxpayers on their registered mobile numbers and emails.
| Category | Current Situation | Department Action | Advice for Taxpayers |
|---|---|---|---|
| Foreign Assets in ITR | Foreign assets not reported by many taxpayers in ITR 2025–26 | Identified as high-risk and notices are being issued | Disclose all foreign assets accurately in revised ITR |
| Notice Timeline | SMS and email alerts starting 28 November 2025 | Last date to file revised ITR is 31 December 2025 | Correct details before deadline to avoid legal pressure |
| Data Source | AEOI, CRS and FATCA financial information received globally | Cross-verification confirms hidden foreign accounts and investments | Do not ignore data matching and remain compliant |
| Previous Campaign Result | 24,678 taxpayers revised ITR | ₹29,208 crore foreign assets and ₹1,089.88 crore income revealed | Transparency leads to legal safety and smooth tax profile |
| Possible Penalties | Hidden foreign assets treated as serious violation | Penalty, interest and legal action likely | Revised ITR submission is the safest and smartest step |
| Objective of Department | Improve transparency and compliance | Ensuring accurate reporting of international income | Honest reporting helps maintain a stable financial record |
This is not just a warning, but a final opportunity, as it advises them to file a revised ITR by December 31, 2025. Failure to make timely corrections could result in penalties, interest, and legal action.
Data from AEOI, CRS, and FATCA provides proof
This campaign by the Income Tax Department is being conducted using completely accurate and digital data. Foreign investments or foreign accounts are identified not by mere guesswork, but based on AEOI, CRS, and FATCA data. Financial information is shared with different countries through these international information agreements.
This data includes accurate records of names, account details, investments, and income. Concealing false information has now become nearly impossible, and the department has a solid basis for action.
Results of the previous campaign, Foreign assets worth billions revealed
Last year, the Income Tax Department conducted a similar campaign, and its impact was astonishing. During that campaign, 24,678 taxpayers revised their ITRs, disclosing foreign assets worth a total of ₹29,208 crore. Additionally, foreign income worth ₹1,089.88 crore was revealed.
These figures clearly indicate that a large number of taxpayers were concealing information about their foreign assets. Given this success, the government is pursuing the campaign with even greater vigor this year.
Filing a revised ITR is the best option; delaying action can be costly
The safest course for taxpayers receiving notices is to file a revised ITR well in advance to clarify their facts. If, for some reason, details of foreign assets were not included in the ITR, they can be corrected through an amendment.
Failure to do so could result in the department taking stringent measures, including penalties, interest, recovery, and legal action. The law clearly states that concealing foreign assets is not only a financial irregularity but also a crime.
The Income Tax Department’s objective is not just strictness, but also transparency and compliance
The government has launched this campaign not to intimidate or pressure, but to ensure a better tax system and transparent income records. Paying taxes on foreign investments and income is not wrong; hiding them is.
This campaign is also in the interest of taxpayers who honestly declare their income, as it makes the tax system more fair. Providing accurate information not only avoids penalties but also strengthens your tax profile.
FAQs
Q1. Who will receive income tax notices regarding foreign assets?
Taxpayers not reporting foreign assets in ITR 2025–26 are targeted.
Q2. When will the income tax notices start being sent?
Notices begin sending from 28 November 2025 via email and SMS.
Q3. What is the last date to file a revised ITR?
The deadline to submit revised ITR is 31 December 2025.
Q4. How does the income tax department identify hidden foreign assets?
Data comes from AEOI, CRS, and FATCA financial information globally.
Q5. What happens if taxpayers fail to disclose foreign assets?
Penalty, interest, and legal action can be imposed by authorities.
Disclaimer: This article is for general information purposes only. The information provided is not a substitute for legal or tax advice. It is essential to consult a qualified chartered accountant or tax expert before making any tax-related decisions.
