Income Tax News: The Income Tax Department of India is stepping up scrutiny of income tax refund claims and tax returns. With this, many taxpayers are receiving alerts (nudges) to check their deduction and exemption claims.
The Income Tax Department is ‘nudging’ taxpayers for them to update their tax returns in case there is some discrepancy in their exemptions and deductions.
Income Tax News: What’s the ‘NUDGE’ Campaign?
The Income Tax Department has communicated to taxpayers and all via a press release that some taxpayers may have claimed ‘ineligible’ refunds via the route of exemptions and deductions. This has resulted in their income being underreported.
The IT Department said several cases for Assessment Year for 2025-26 have been identified under the risk management framework and via the use of advanced data analytics. There were also instances of bogus donations and invalid PAN details. During the NUDGE campaign, taxpayers were contacted via email and SMS to voluntarily correct errors before December 31, 2025.
What If There Are Genuine Deduction Or Exemption Claims?
The department said there is no action required if the deduction or exemption claims are legally correct and genuine. It was also said that taxpayers who miss the deadline of December 31, 2025, for any reason may still file an updated return from January 1, 2026, subject to additional tax. Visit the Income Tax website to make the corrections.
