New Delhi, Nov. 27 -- The Central Board of Direct Taxes (CBDT) on Thursday announced the launch of the second phase of its NUDGE initiative, aimed at strengthening voluntary compliance in the reporting of foreign assets and income.

As part of this phase, the CBDT will begin issuing SMS and email alerts from November 28, 2025, to taxpayers identified through Automatic Exchange of Information (AEOI) analysis for FY 2024-25. These alerts will advise taxpayers to review and revise their Income Tax Returns (ITRs) for AY 2025-26 by December 31, 2025, to avoid penal consequences.

According to the Finance Ministry, advanced data analytics of AEOI information has flagged several high-risk cases, and an initial set of about 25,000 such cases will...