Indian authorities target high earners with tax notices over undeclared income and assets, using AI to drive voluntary disclosures and $2.5B in additional payments.

Indian tax authorities have issued notices to senior executives earning over Rs 50 lakh annually, alleging underreported income, undeclared foreign assets, and misuse of tax exemptions. Discrepancies include unreported cryptocurrency earnings, inflated allowances, fake donations to unregistered charities, and undisclosed overseas properties and investments. The crackdown, driven by AI and data analytics under the "Nudge" campaign, has led over 2.1 million taxpayers to revise past returns, resulting in over ₹2,500 crore in additional tax payments. A six-month window in the 2026–27 budget allows voluntary disclosure of foreign assets, offering relief to professionals and students with undisclosed funds. Separate actions are underway against chartered accountants linked to recurring patterns of identical donations.