CBDT issues statement after Income Tax Department sends SMS to taxpayers
NEW DELHI: The Central Board of Direct Taxes (CBDT) on Tuesday urged taxpayers to voluntarily recheck the deductions and exemptions claimed in their annual income tax returns, after data analysis revealed that a significant number of claims were incorrect or ineligible.
Issuing a clarification following widespread discussion on social media about SMS alerts sent by the Income Tax Department, the CBDT said it has launched a special initiative to prompt taxpayers to review and rectify such claims on their own.
Under this drive, identified taxpayers are being contacted through SMS and email as part of the “Non-intrusive Usage of Data to Guide and Enable (NUDGE)” campaign, encouraging them to correct errors and file revised returns by December 31, 2025.
The CBDT explained that using advanced data analytics under its risk management framework, cases for Assessment Year 2025–26 have been flagged where claims such as bogus donations to Registered Unrecognised Political Parties (RUPPs) or other inadmissible deductions and exemptions appear to have been made. In some instances, incorrect or invalid PAN details of donees were used, or the deduction amounts claimed exceeded permissible limits, said CBDT spokesperson V Rajitha.
Taxpayers have been advised to verify the accuracy of their claims and submit revised returns wherever necessary to avoid further scrutiny.
However, the CBDT clarified that taxpayers whose deductions and exemptions are genuine and fully compliant with the law need not take any action.
Those who miss the December 31, 2025 deadline will still have the option to file an updated return from January 1, 2026, subject to payment of additional tax as prescribed.
The statement added that during FY 2025–26, over 21 lakh taxpayers have already updated their ITRs for assessment years 2021–22 to 2024–25, resulting in the collection of more than ₹2,500 crore. Additionally, more than 15 lakh returns have already been revised for the current assessment year.