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Government Launches NUDGE Campaign to Help Taxpayers Correct Returns-Details
Government Launches NUDGE Campaign For AY 26 To Help Taxpayers Fix Return Errors Voluntarily
NUDGE Campaign: The data shows that some returns contain incorrect or invalid PANs of donees, while others have errors regarding the actual amount of the deduction claimed.
NUDGE Campaign: The Government of India has launched a data-driven "NUDGE" campaign for the Assessment Year 2025-26 to encourage taxpayers to voluntarily review their deduction and exemption claims. This initiative uses risk analytics to identify claims that appear potentially ineligible.
According to a release from the Central Board of Direct Taxes, the campaign enables taxpayers to make voluntary corrections where required. The outreach serves as an advisory and reflects a trust-first approach to tax administration. The government uses advanced data analytics and a risk management framework to identify specific cases for the current assessment year.
These digital tools detect instances where taxpayers might have claimed ineligible refunds. Examples include bogus donations to Registered Unrecognised Political Parties (RUPPs) and other deductions that lead to an understatement of income. The data shows that some returns contain incorrect or invalid PANs of donees, while others have errors regarding the actual amount of the deduction claimed.
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Launch of a data-driven NUDGE campaign for AY 2025–26 encouraging taxpayers to voluntarily review deduction/exemption claims identified as potentially ineligible through risk analytics.
The outreach is advisory and reflects a trust-first approach, enabling voluntary correction,… pic.twitter.com/8pXqXL2PMe — Income Tax India (@IncomeTaxIndia) December 23, 2025
The tax department sends messages and emails to the identified taxpayers under the "Non-intrusive Usage of Data to Guide and Enable" campaign. This process gives people a chance to fix errors before the December 31, 2025, deadline for filing revised returns. The initiative aims to create a transparent and taxpayer-centric environment by focusing on guidance rather than immediate penalties. This approach allows the government to support voluntary compliance through technology.
Recent data shows that many taxpayers are already using these options to correct their tax records. During the 2025-26 financial year, more than 21 lakh taxpayers updated their returns for previous years and paid over Rs 2,500 crore in taxes.
Furthermore, more than 15 lakh returns for the current assessment year have already been revised by taxpayers. These figures suggest that the voluntary correction system is helping people manage their tax duties effectively.
The department advises concerned taxpayers to verify their claims and revise their returns by the end of the month to avoid further enquiries. However, taxpayers who made genuine and legal claims do not need to take any action.
Source: ZeeNews
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