Press Release, dated 13-12-2025
1. Background
The Central Board of Direct Taxes (CBDT) has launched a targeted NUDGE (Non-intrusive Usage of Data to Guide and Encourage) campaign aimed at taxpayers who have claimed deductions for donations to suspicious entities or have not furnished adequate information to establish the genuineness of such entities.
The initiative forms part of CBDT’s broader strategy to encourage voluntary compliance through data-driven nudges, rather than immediate enforcement action.
2. Data-Driven Identification of High-Risk Claims
CBDT has strengthened its advanced data analytics and risk-profiling systems to detect potentially incorrect or abusive claims at an early stage.
Key Findings from Data Analytics
Analysis indicated that:
- Several taxpayers may have claimed deductions for donations made to entities flagged as suspicious, or
- Failed to provide relevant details necessary to verify the genuineness of the donee institutions
These patterns were identified as high-risk behaviour indicators, prompting targeted outreach instead of blanket scrutiny.
3. Targeted NUDGE Campaign – Taxpayer-Friendly Approach
Rather than initiating immediate assessment or penalty proceedings, CBDT has adopted a soft-touch compliance approach.
Key Features of the Campaign
- Personalised SMS and email advisories are being sent to identified taxpayers
- Communication is sent to registered mobile numbers and email IDs
- Taxpayers are given an opportunity to review and voluntarily correct their returns
- The campaign encourages taxpayers to:
- Update their Income-tax Returns (ITRs), and
- Withdraw incorrect or ineligible donation claims, if any
This approach aims to promote self-correction and voluntary disclosure.
4. Importance of Updated Contact Details
CBDT has emphasised that taxpayers must ensure:
- Correct and active mobile numbers
- Valid email IDs
are provided in their filings and on the Income-tax portal.
Accurate contact details are essential to:
- Receive timely advisories and compliance nudges
- Avoid missing important communications that could otherwise lead to subsequent scrutiny or enforcement action
5. Regulatory Intent
The campaign reflects CBDT’s intent to:
- Leverage technology and analytics for preventive compliance
- Reduce litigation and administrative burden
- Distinguish between genuine errors and deliberate tax abuse
- Encourage taxpayers to regularise mistakes without fear of immediate penal consequences
It also serves as a deterrent against misuse of donation-based deductions, particularly where donee entities may not meet statutory conditions.
6. Key Takeaways for Taxpayers
Taxpayers should:
- Review donation-related deductions claimed in their ITRs
- Verify the eligibility and genuineness of the donee institutions
- Respond promptly to any SMS or email advisories from CBDT
- File updated returns where incorrect claims have been made
- Ensure contact details are current on the Income-tax portal
Failure to act on such nudges may result in closer scrutiny, reassessment, or penalty proceedings at a later stage.
Click Here To Read The Full Press Release
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