The Central Board of Direct Taxes (CBDT) has initiated a “Nudge” campaign for the 2025–26 assessment year, urging taxpayers to voluntarily review and rectify deduction or exemption claims flagged as potentially ineligible by the Income Tax Department’s advanced data analytics. Cases involving bogus donations to Registered Unrecognised Political Parties (RUPPs) have been identified in some income tax returns (ITRs), as per the CBDT statement. Taxpayers are advised to submit revised income-tax returns (ITRs) by December 31, 2025, with a provision for updated filings after January 1, 2026, in case of missed deadlines, subject to additional tax liabilities.
The campaign, characterized as advisory, aims to prompt identified taxpayers to reassess deduction claims marked as potentially ineligible through risk analytics for the AY 2025–26. This outreach strategy emphasizes a trust-based approach, facilitating voluntary corrections where necessary, according to the CBDT statement. The Income Tax Department has noted instances where taxpayers claimed refunds improperly by availing deductions or exemptions they were not entitled to, leading to income understatement.
Under its risk management framework and advanced data analytics, the CBDT has pinpointed cases for AY26 where questionable donations to registered unrecognised political parties and other unauthorized deductions or exemptions were sought. The CBDT has also highlighted issues such as inaccurate or invalid Permanent Account Numbers (PANs) and discrepancies in the extent of deductions or exemptions claimed. As part of the initiative, SMSs and Email advisories are being dispatched this month to affected taxpayers via their registered mobile numbers and emails.
Taxpayers are urged by the CBDT to ensure the accuracy of their mobile and email IDs in their filings with the Department to avoid missing any official communication. The Nonintrusive Usage of Data to Guide and Enable (NUDGE) campaign is designed to enhance voluntary compliance and is considered a taxpayer-friendly step. For more details on deduction provisions and the process of filing Updated Returns, taxpayers can visit www.incometax.gov.in.
