On December 23, 2025, the Central Board of Direct Taxes (CBDT), under the Ministry of Finance (MoF), launched a data-driven “Non-Intrusive Usage of Data to Guide and Enable (NUDGE)” campaign for Assessment Year (AY) 2025-26, aimed at improving voluntary tax compliance.
- What? NUDGE Campaign launched
- Who? CBDT (MoF)
- Duration: Assessment Year 2025-26
- Deadline: 31 December 2025, after 1 January 2026 (additional tax)
- Targets: Bogus deductions, invalid PANs, suspicious RUPP donations
Risk Analytics: The campaign primarily uses advanced risk analytics and data matching to flag potential discrepancies in filed Income-Tax Returns (ITRs) such as Bogus donations to Registered Unrecognised Political Parties (RUPPs) or ineligible deductions or exemptions, incorrect or invalid Permanent Account Numbers (PANs), and errors in the amount claimed for eligible deductions or exemptions.
Deadlines: The revised ITRs can be filed up to 31 December 2025 to avoid further scrutiny, enquiries, or potential demand notices. The returns updated after 1 January 2026 may attract additional tax and liabilities.
Background: Over 15 lakhs revised ITRs filed in AY 2025-26 under the campaign. More than 21 lakh updated returns for previous AYs from 2021-22 to 2024-25 were filed. Additional tax of around Rs.2,500 crores has been collected.
About NUDGE: It was first launched by CBDT in 2024 aimed at identifying potential discrepancies in filed ITRs using advanced risk analytics and data matching.
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