Tax officials have found several worrying patterns in the 2025-26 assessment year period. Many return filings show donations to unrecognized political parties, even though they do not meet the criteria for tax benefits. There are also some returns where exemption claims are inconsistent with the established rules.
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The Income Tax Department has asked taxpayers to re-examine deduction and exemption claims identified by risk analytics. There are doubts about taxpayers’ entitlement to these claims. The department has also clarified that taxpayers who have received intimation emails claiming deductions should file revised returns before the December 31, 2025, deadline to avoid penalties.
Tax officials found several worrying patterns during the investigation
Tax officials have found several worrying patterns in the 2025-26 assessment year period. Many return filings show donations to unrecognized political parties, even though they do not meet the criteria for tax benefits. There are also some returns where exemption claims are inconsistent with the established rules. Some taxpayers have significantly increased the amount of deductions.
Emails being sent to taxpayers under the NUDGE campaign
The Income Tax Department has stated that it is notifying such taxpayers through text messages and emails under its ‘NUDGE’ program. NUDGE is a program aimed at helping erring taxpayers rather than targeting them. Taxpayers who have received a message or email from the Income Tax Department should carefully review their filed returns.
Taxpayers are advised to check their original returns.
Taxpayers should especially carefully review the deductions and exemptions sections. If a taxpayer finds any errors or discrepancies, they can file a revised return by the end of this month before an official investigation begins. Taxpayers who believe that the deductions and exemptions claimed by them are correct and have provided supporting documents need not do anything.
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
If an error is found, a revised return can be filed by December 31st.
If a taxpayer finds an error in their original return and does not file a revised return by December 31st, 2025, they will be required to file an updated return starting January 1st. They will then incur additional tax. The Income Tax Department says that it intends to provide taxpayers with the opportunity to correct errors in their returns themselves under the NUDGE program. This will foster a collaborative relationship between the Income Tax Department and taxpayers.
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