Why did taxpayers claiming deductions receive emails? Income Tax Department explains

Income tax

• Income Tax Dept urges taxpayers to review flagged deduction and exemption claims
• NUDGE campaign advises voluntary correction before Dec 31, 2025 deadline
• Errors can be fixed later with extra tax; outreach aims for trust compliance.

Did our AI summary help?

The Income Tax Department has asked taxpayers to recheck deduction and exemption claims that have been flagged by risk analytics as possibly ineligible.

The department also clarified why many taxpayers who claimed deductions received intimation emails and outlined the steps they must take to avoid penalties before the revised ITR deadline of December 31, 2025.

Launch of a data-driven NUDGE campaign for AY 2025–26 encouraging taxpayers to voluntarily review deduction/exemption claims identified as potentially ineligible through risk analytics.

The outreach is advisory and reflects a trust-first approach, enabling voluntary correction,… pic.twitter.com/8pXqXL2PMe — Income Tax India (@IncomeTaxIndia) December 23, 2025

Tax officials have pinpointed several concerning patterns for the 2025-26 assessment period. Many filings show donations to unrecognised political entities that do not qualify for tax benefits. Other returns contain exemption claims that do not meet legal requirements or feature incorrect identification numbers for charitable recipients. Some taxpayers have also overstated the amounts they are permitted to deduct.

Department explained that it is reaching out to affected individuals through text messages and emails as part of their ‘NUDGE’ program, a system designed to help rather than punish taxpayers who made mistakes.

Next steps for taxpayers

Those contacted should examine their filings carefully, particularly sections dealing with deductions and exemptions. Anyone who discovers inaccuracies should submit corrected returns before the month ends to prevent official investigations.

However, taxpayers confident their claims are legitimate and properly documented need do nothing. The outreach targets only those whose filings raised red flags in the system.

Missing the Deadline

Anyone who skips this window can still fix errors starting January 1 through updated return, subject to payment of extra tax liability.

This strategy marks a shift toward using technology to encourage honest reporting rather than relying solely on audits and enforcement. By identifying potential issues early and giving people a chance to self-correct, tax authorities hope to build a more cooperative relationship with the public while maintaining system integrity.

How to file a belated ITR?

• Sign in to your account on the income tax e-filing portal.
• Click on ‘e-File’, select ‘Income Tax Returns’, and then choose ‘File Income Tax Return’.
• Choose the relevant assessment year.
• Select ‘Online’ as the filing mode and proceed further.
• Click on ‘Start New Filing’.
• Select the applicable filing status.
• Choose the appropriate ITR form.
• Open the ‘Personal Information’ section and verify that all details are accurate.
• Scroll to the filing details section and select Section 139(4).
• Enter income details under the respective heads and complete the process by paying the applicable tax.