Missed Something In Your ITR? Check The NUDGE Campaign; Smart Way To Correct It, Avoid Penalties, And Make Voluntary Corrections Simple

Government Launches “NUDGE” Campaign For AY 2025-26

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.

Advisory Approach To Tax Administration

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 highlight instances where taxpayers might have claimed ineligible refunds, such as bogus donations to Registered Unrecognised Political Parties (RUPPs) and other deductions that lead to understatement of income. The data also reveals returns with incorrect or invalid PANs of donees or errors in the actual deduction amounts claimed.

Communication And Voluntary Corrections

Under the “Non-intrusive Usage of Data to Guide and Enable” campaign, the tax department sends messages and emails to identified taxpayers. 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. Through this method, the government supports voluntary compliance using technology.

Positive Uptake And Next Steps

Recent data shows 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, over 15 lakh returns for the current assessment year have already been revised. These figures suggest that the voluntary correction system is helping people manage their tax duties effectively. The department advises 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.

“It is clarified that taxpayers who do not avail of this opportunity may still file an updated return from 1 January 2026, as permitted under law, subject to payment of additional tax liability,” the release noted.

(This article has been synducated from ANI)

Also Read: ITR Delay: Income Tax Refund on Hold? Why Taxpayers Are Getting Alerts For AY 2025–26…