CBDT Launches NUDGE Campaign for AY 2025–26: Received SMS or Email? Correct These ITR Errors Before December 31
The Central Board of Direct Taxes (CBDT) has rolled out a special NUDGE Campaign for the Assessment Year 2025–26, aimed at helping taxpayers voluntarily review and correct mistakes in their Income Tax Returns (ITR). If you have recently received an SMS or email from the Income Tax Department, it is a gentle reminder—not a notice—to recheck your tax filings and fix any incorrect claims before December 31, 2025
The initiative reflects the government’s shift toward a trust-based and non-intrusive tax administration, using technology and data analytics to guide taxpayers rather than penalize them.
What Is the CBDT NUDGE Campaign?NUDGE stands for “Non-Intrusive Usage of Data to Guide and Enable.” Under this campaign, the Income Tax Department is reaching out to selected taxpayers through emails and text messages, asking them to review their returns for possible errors related to deductions and exemptions.
CBDT has clarified that the purpose of this outreach is not to intimidate or initiate scrutiny
According to a notification issued by CBDT on December 23, 2025, advanced data analytics and risk management systems flagged several cases where deductions and exemptions for AY 2025–26 were claimed incorrectly.
Some common issues identified include:
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Donations claimed to unrecognized or non-existent political parties or institutions
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Use of invalid or incorrect PAN numbers while claiming deductions
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Inflated deduction amounts, resulting in lower taxable income and reduced tax liability
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Incomplete or inconsistent information related to exemptions under various sections
These discrepancies prompted the department to alert taxpayers early, allowing them to self-correct without facing penalties or legal action.
How Are Taxpayers Being Alerted?Instead of issuing formal notices, the Income Tax Department is contacting taxpayers via SMS and email under the NUDGE framework. These messages advise recipients to:
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Reassess their filed ITR
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Identify any incorrect claims
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File a Revised Return on or before December 31, 2025
This approach helps taxpayers resolve issues proactively and avoid future complications.
If you’ve received a message from the Income Tax Department, here’s what you should do:
1. Check SMS and Emails Carefully
Do not ignore any communication received from the department after December 12, 2025.
2. Verify Donation Claims
Review deductions claimed under Section 80G and 80GGC. Ensure:
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The institution is legally recognized
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PAN details are accurate
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Payments were made through valid modes
3. Watch for Red Flags
Fake receipts, cash donations, unverified institutions, or incomplete records may indicate incorrect claims.
4. File a Revised Return if Needed
If errors are found, submit a Revised Return before December 31, 2025. For older years, taxpayers may consider filing ITR-U (Updated Return).
5. Keep Contact Details Updated
Ensure your mobile number and email address are correct on the income tax e-filing portal so you don’t miss important alerts.
CBDT has emphasized that taxpayers who have legitimately claimed deductions and exemptions as per law need not take any action. The campaign is targeted only at cases where inconsistencies or high-risk indicators are detected through data analysis.
However, those who fail to correct mistakes within the deadline can still file an Updated Return (ITR-U)
The NUDGE Campaign is part of CBDT’s broader effort to modernize India’s tax system. By leveraging technology and data responsibly, the department aims to reduce unnecessary scrutiny, notices, and litigation.
Officials have reiterated that data is being used strictly for guidance and facilitation
CBDT reports encouraging results from similar initiatives in the past. During the financial year 2025–26:
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Over 21 lakh taxpayers updated returns for AY 2021–22 to 2024–25
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The government collected more than ₹2,500 crore in additional tax revenue
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For the current AY 2025–26 alone, over 15 lakh ITRs have already been revised
These figures highlight growing taxpayer awareness and compliance driven by supportive policy measures.
Final TakeawayIf you have received an SMS or email under the CBDT NUDGE Campaign, take it seriously—but don’t panic. Review your ITR carefully, correct genuine mistakes, and file a revised return before December 31, 2025