Over 15 Lakh Taxpayers Revised ITRs Under NUDGE Campaign, Paid ₹2,500 Crore in Taxes
The IT Department's data-driven compliance initiative has prompted 21 lakh taxpayers for updating earlier returns.
The Central Board of Direct Taxes on December 23, 2025 accounted for more than 15 lakh taxpayers having filed revised Income Tax Returns (ITRs) for Assessment Year (A.Y.) 2025-26, as the deadline on December 31, 2025 approaches for voluntary corrections without additional penalties.
The escalation is followed via a targeted compliance initiative by the Income TaxDepartment, which has been encouraging taxpayers to voluntarily review and correct any potentially ineligible deduction and exemption claims identified through advanced data analytics.
NUDGE Campaign: A Trust-First Approach
The Income Tax Department launched its Non-intrusive Usage of Data to Guide and Enable (NUDGE) campaign on December 12, contacting identified taxpayers through SMS and email advisories. The department is providing taxpayers an opportunity to review their ITRs and voluntarily correct ineligible claims before the December 31 deadline.
According to the official press release, the campaign leverages data analytics and technology to enable a transparent, non-intrusive, and taxpayer-centric compliance environment with emphasis on guidance and voluntary compliance.
Focus on Bogus Donations and Invalid Claims
The department has identified popular cases where taxpayers have claimed ineligible refunds through unentitled deductions or exemptions. The framework targets instances of bogus donations to Registered Unrecognised Political Parties (RUPPs), incorrect or invalid PANs of donees have been quoted, among other cases.
₹2,500 Crore Collected Through Updated Returns
As per the report, in F.Y. 2025-26, more than 21 lakh taxpayers have updated their ITRs concerning A.Y.s 2021-22 to 2024-25, collectively quantifying as ₹2,500 crore in taxes.
December 31 Deadline
The CBDT has advised concerned taxpayers to review their ITRs, verify the correctness of their deduction and exemption claims, and revise their returns if required by December 31, 2025, to avoid any further enquiries, concerning A.Y. 2025-26 without incurring additional tax liability.
The CBDT has also granted an opportunity to those taxpayers who miss this deadline, to file an updated return from January 1, 2026, but subject to a payment of additional tax liability, if applicable.
By providing taxpayers with an opportunity to self-correct before initiating formal proceedings, the department is reducing burden on both taxpayers and the tax administration while improving compliance rates.
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