Income Tax Dept launches data-driven NUDGE campaign for AY 2025–26

The Income Tax Department has launched a data-driven NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign for Assessment Year (AY) 2025–26, urging taxpayers to voluntarily review and correct deduction and exemption claims that may be potentially ineligible, as flagged through advanced risk analytics.

Trust-first, advisory approach
Identified taxpayers are being contacted via SMS and email, requesting them to re-examine their claims ahead of the 31 December deadline for filing revised Income Tax Returns (ITRs). The outreach is advisory and non-intrusive, reflecting a trust-based compliance framework that enables voluntary correction without coercive action.

Use of data analytics and risk management
Under the Department’s risk management framework, analytics have identified cases where bogus donations to Registered Unrecognised Political Parties (RUPPs) and other ineligible deductions or exemptions appear to have been claimed. The campaign leverages technology to promote transparent, taxpayer-centric compliance.

Strong response from taxpayers

• During 2025–26, over 21 lakh taxpayers have updated their ITRs for AYs 2021–22 to 2024–25, paying more than ₹2,500 crore in taxes.
• For AY 2025–26, more than 15 lakh ITRs have already been revised.