New Delhi: The Central Board of Direct Taxes (CBDT) on Tuesday urged taxpayers to voluntarily review their income tax returns and correct any incorrect deduction or exemption claims, after data analysis revealed that several taxpayers had claimed benefits they were not entitled to.
In a statement issued amid reports of text messages sent by the Income Tax Department, the CBDT said it has launched an initiative under the “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” campaign to encourage voluntary compliance.
As part of the exercise, identified taxpayers are being contacted via SMS and email and advised to review their Income Tax Returns (ITRs) for Assessment Year (AY) 2025–26. They have been asked to file revised returns by December 31, 2025, if discrepancies are found.
According to the CBDT, cases were identified under the department’s risk management framework using advanced data analytics. These include instances of:
- Claims of bogus donations to Registered Unrecognised Political Parties (RUPPs)
- Ineligible deductions or exemptions
- Use of incorrect or invalid PANs of donees
- Errors in the quantum of deductions or exemptions claimed
“The department has advised taxpayers to verify the correctness of their claims and revise their returns, if required, to avoid further enquiries,” CBDT spokesperson V Rajitha said.
The board clarified that taxpayers who have made genuine and legally valid claims need not take any action.
Those who fail to revise their returns by December 31, 2025, may still file an updated return from January 1, 2026, as permitted under law, but this will be subject to additional tax liability.
The CBDT said that during FY 2025–26, over 2.1 million taxpayers have already updated their returns for AYs 2021–22 to 2024–25, paying more than ₹2,500 crore in additional taxes. Additionally, over 1.5 million ITRs have already been revised for the current assessment year.