What is the story about?
Following the Central Board of Direct Taxes’ (CBDT) data-driven action against suspicious donation deductions, taxpayers who have received alerts under the ‘NUDGE’ campaign should review their income tax returns (ITRs) and take corrective steps where required.
The campaign is aimed at voluntary compliance and allows taxpayers to rectify errors before stricter enforcement action.
Step 1: Check if you have received a CBDT alert
CBDT has started sending SMS and email advisories from December 12, 2025, to taxpayers whose returns show high-risk patterns, particularly claims under Sections 80G and 80GGC.
Taxpayers should check:
Step 2: Review donation-related deductions in your ITR
Taxpayers should carefully verify:
Key checks include:
Step 3: Identify incorrect or unverifiable claims
A claim may be considered risky if:
If any of these issues exist, taxpayers should to withdraw or correct the claim.
Step 4: Revise or update your Income Tax Return
Depending on the assessment year, taxpayers can:
This allows taxpayers to correct errors, pay any additional tax due, and regularise their filings.
Step 5: Maintain accurate contact details
CBDT has emphasised the importance of keeping mobile numbers and email IDs updated on the e-filing portal. Incorrect contact details may result in missed advisories or compliance deadlines.
The NUDGE campaign reflects CBDT’s increased use of data analytics to detect high-risk claims early, while giving taxpayers an opportunity to self-correct. Prompt action can help taxpayers avoid penalties, interest, and further scrutiny.
The campaign is aimed at voluntary compliance and allows taxpayers to rectify errors before stricter enforcement action.
Step 1: Check if you have received a CBDT alert
CBDT has started sending SMS and email advisories from December 12, 2025, to taxpayers whose returns show high-risk patterns, particularly claims under Sections 80G and 80GGC.
Taxpayers should check:
- Registered email ID
- Registered mobile number
- Income Tax e-filing portal notifications
Step 2: Review donation-related deductions in your ITR
Taxpayers should carefully verify:
- Donations claimed under Section 80G (charitable institutions)
- Donations claimed under Section 80GGC (political parties)
Key checks include:
- Whether the recipient organisation is genuine and eligible
- Whether correct PAN, approval details, and payment mode have been disclosed
- Whether supporting documents match the claim made
Step 3: Identify incorrect or unverifiable claims
A claim may be considered risky if:
- The donee entity is non-operational or lacks proper registration
- Donation receipts appear doubtful or incomplete
- Payment was not made through permitted banking channels
- Required disclosures were omitted in the return
If any of these issues exist, taxpayers should to withdraw or correct the claim.
Step 4: Revise or update your Income Tax Return
Depending on the assessment year, taxpayers can:
- File a revised return for the current assessment year (AY 2025–26), or
- File an updated return (ITR-U) for earlier years, as permitted under the Income Tax Act
This allows taxpayers to correct errors, pay any additional tax due, and regularise their filings.
Step 5: Maintain accurate contact details
CBDT has emphasised the importance of keeping mobile numbers and email IDs updated on the e-filing portal. Incorrect contact details may result in missed advisories or compliance deadlines.
The NUDGE campaign reflects CBDT’s increased use of data analytics to detect high-risk claims early, while giving taxpayers an opportunity to self-correct. Prompt action can help taxpayers avoid penalties, interest, and further scrutiny.
