The Central Board of Direct Taxes (CBDT) has launched a data-based “nudge” campaign for the 2025–26 assessment year, asking taxpayers to check their income-tax
deduction and exemption claims that may be invalid. The move targets cases flagged through data analysis, including claims linked to bogus donations made to Registered Unrecognised Political Parties (RUPPs). Under the advisory, taxpayers identified by the department have been asked to file revised income-tax returns (ITRs) by December 31, 2025. Those who miss the deadline can still file updated returns from January 1, 2026, but will have to pay additional tax as permitted under the 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 CBDT said in a statement on December 23. The tax department said it found cases where taxpayers claimed deductions or exemptions they were not eligible for, resulting in lower declared income and higher refunds. Using its risk management systems and advanced data analytics, it identified cases in AY 2025–26 involving bogus donations to RUPPs and other inadmissible claims. The CBDT also flagged instances where taxpayers had provided incorrect or invalid Permanent Account Numbers (PANs), or where there were mismatches in the amount or type of deductions or exemptions claimed. Taxpayers identified under the campaign are being contacted through SMS and email as part of the “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” initiative, urging them to correct the discrepancies before the December 31 deadline. The board clarified that taxpayers who have made genuine and legally valid deduction or exemption claims do not need to take any action. The advisory comes amid a slowdown in income-tax refunds. Official data shows that refunds worth Rs 2.97 lakh crore were issued between April 1 and December 17, a decline of 13.52 per cent compared to the same period last year.
