CBDT NUDGE campaign: Rectify mistakes if you receive SMS and emails; deadline Dec 31

Kolkata: The Central Board of Direct Taxes (CBDT) has launched the NUDGE campaign for assessment year 2025-26. NUDGE is the acronym for "Non-intrusive Use of Data to Guide and Enable". In the process, it is alerting taxpayers about incorrect deductions and exemptions via SMS and email. The CBDT is not out to scare taxpayers but wants to provide taxpayers with a window to voluntarily correct errors by reviewing their ITRs. The deadline for filing revised returns is December 31, 2025. This is a special campaign to encourage taxpayers to review their ITR (income tax returns) and voluntarily correct any errors.

In a notification issued on December 23, 2025, the CBDT stated that advanced data analytics and risk management systems have revealed instances where deductions and exemptions have been incorrectly claimed for assessment year 2025-26. Quite a few discrepancies have been found in these cases. Some taxpayers have shown donations to political parties or organisations that are either unrecognised or even non-existent. In many cases, incorrect or invalid PAN numbers have been used for donations. In some returns, excessive deductions have been shown, resulting in understated income and understated tax liability. The CDT wants these to be rectified by the end of this calendar year.

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CBDT is not dispatching notices to taxpayers who usually view notices with apprehension. Instead Income Tax Department has contacted taxpayers via SMS and email. This contact is being made under the "Non-intrusive Use of Data to Guide and Enable (NUDGE)" campaign. Taxpayers have been asked to re-examine their ITRs and file revised returns by December 31, 2025.

Avoiding false claims

Check sms and emails

Do not ignore any messages or email from the Income Tax Department after Dec 12, 2025.

Verify donations shown under sections 80G and 80GGC. Ensure validity of the organization and its PAN.

Fake receipts, cash payments, unrecognised organisations, or incomplete information must be rectified.

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If there are errors in your ITR, file revised returns or ITR-U for earlier years.

CBDT has also said that that there is no need for panic for those who made correct deductions and exemptions. They do not need to take any action. But if anyone who does not rectify errors by Dec 31 can file updated return (ITR-U) from January 1, 2026 with additional taxes and charges.