Thu Mar 06 14:03:53 UTC 2025: **India Sees Surge in Voluntary Disclosure of Foreign Assets Following Government Campaign**

NEW DELHI – India has witnessed a dramatic increase in voluntary disclosures of foreign assets and income by taxpayers, according to government data released today. A targeted compliance campaign by the Central Board of Direct Taxes (CBDT) has yielded significant results, highlighting the effectiveness of a trust-based approach to tax compliance.

The number of taxpayers voluntarily disclosing foreign assets and income has skyrocketed from 60,000 in 2021-22 to 231,452 in 2024-25, representing a 45.17% increase from the previous year. This surge follows the CBDT’s November 17th, 2024 launch of a Compliance-Cum-Awareness Campaign utilizing data received from over 108 countries through the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).

The campaign, which prioritized voluntary compliance over enforcement, involved a multi-pronged outreach strategy including SMS and email notifications to over 19,500 taxpayers with significant foreign holdings, 30 nationwide outreach sessions reaching over 8,500 participants, and widespread social media engagement.

The results are impressive: 24,678 taxpayers reviewed their Income Tax Returns (ITRs), with 5,483 filing belated returns, declaring a combined Rs 29,208 crore (approximately $3.5 billion USD) in foreign assets and Rs 1,089.88 crore (approximately $130 million USD) in additional foreign income. A further 6,734 taxpayers revised their residential status. Overall, approximately 62% of targeted taxpayers responded positively.

By September 2024, nearly 30,161 Indians had reported foreign assets exceeding Rs 29,000 crore (approximately $3.5 billion USD). The CBDT emphasized that this success is a testament to the “Trust First” approach, empowering taxpayers to proactively correct their filings before any enforcement actions. This collaborative strategy is seen as a significant step towards strengthening India’s tax compliance framework while promoting fairness and responsible financial disclosures.

Read More