Filed ITR-1 or ITR-4? Income Tax Department Issues Warning; Mandatory Corrections Before December 31
IT department warns ITR-1 and ITR-4 filers to correct foreign income or asset details in Schedule FA, FSI, TR and revise returns before December 31, 2025.
Income Tax Department issues alert urging ITR-1 and ITR-4 filers to correct foreign asset and income details before the December 31 deadline.
A major alert has been issued for taxpayers who filed ITR-1 or ITR-4 this year. The Income Tax Department has urged individuals to immediately review their returns, especially details filled under Schedule FA, FSI, and TR. Any mistakes or omissions in reporting foreign income or foreign assets must be corrected by December 31, 2025, failing which taxpayers may face compliance issues.
Why the Warning?
Employees, professionals, and self-employed individuals are required to file annual income tax returns and accurately declare all sources of income. While excess tax paid can be refunded, under-reporting income or hiding foreign assets can lead to notices and further complications. To avoid such situations, the department has introduced fresh guidelines.
What the Income Tax Department Said
In an official post on its social media channels, the IT department clarified:
Many taxpayers have received messages under NUDGE 2.0, an initiative aimed at helping individuals correctly report foreign income and assets.
Taxpayers must recheck their ITR to ensure Schedules FA, FSI and TR reflect accurate details.
If any information is incorrect or missing, the return must be revised before December 31, 2025.
The department also noted that if a person is revising their return but cannot see Schedules FA, FSI or TR, it likely means the wrong ITR form was selected. Taxpayers must choose the correct return form and disclose all foreign assets and foreign income clearly.
About NUDGE 2.0
To combat tax evasion while promoting voluntary compliance, the Central Board of Direct Taxes (CBDT) relaunched the NUDGE (Non-Intrusive Use of Data to Guide and Enable) programme.
This initiative targets individuals who have not properly disclosed foreign assets or foreign income. Using data shared by other countries under the Automatic Exchange of Information (AEOI) system, the department is sending reminders to taxpayers and urging them to correct their returns voluntarily—without imposing immediate penalties.
