New Delhi: The Central Board of Direct Taxes (CBDT) has launched a “Nudge” campaign for the 2025–26 assessment year on Tuesday, asking taxpayers to voluntarily review and correct deduction or exemption claims identified as potentially ineligible through the Income Tax Department’s advanced data analytics.

Some of these claims, which have been filed in the income tax returns (ITRs), involve cases of bogus donations to Registered Unrecognised Political Parties (RUPPs), according to the statement issued by CBDT, the apex body of the Income Tax Department.

The initiative, which is advisory in nature, requires identified taxpayers to file revised income-tax returns (ITRs) by December 31, 2025. Those who miss the deadline are allowed to file updated returns from January 1, 2026, but with additional tax liability as permitted under law.

“The department has launched a data-driven NUDGE campaign for AY 2025–26, encouraging taxpayers to voluntarily review deduction claims identified as potentially ineligible through risk analytics. The outreach reflects a trust-first approach enabling voluntary correction wherever required,” the statement said.

The tax authority said it has observed that certain taxpayers claimed ineligible refunds by availing deductions or exemptions to which they were not entitled, resulting in understatement of income. 

Under its risk management framework and advanced data analytics, cases for AY26 were identified where bogus donations to registered unrecognised political parties and other ineligible deductions or exemptions appeared to have been claimed.

The CBDT also flagged instances where incorrect or invalid Permanent Account Numbers (PANs) were quoted, as well as errors relating to the extent of deductions or exemptions claimed.

Under the campaign, SMSs and Email advisories are being issued this month to such taxpayers on their registered mobile numbers and emails.

CBDT has advised taxpayers to ensure that the correct mobile and email IDs are mentioned in their filings with the Department so that they do not miss out on any communication.

The Nonintrusive Usage of Data to Guide and Enable (NUDGE) campaign is a taxpayer-friendly measure to strengthen voluntary compliance. Additional information on deduction provisions and filing of Updated Returns is available at www.incometax.gov.in.