The Income Tax Department stated that, why are emails are being sent to many taxpayers, Know The Details
Income Tax Department: The Income Tax Department has asked taxpayers to re-examine deduction and exemption claims that have been flagged by risk analytics. There are doubts regarding the taxpayers’ entitlement to these claims. The department has also clarified that taxpayers who have received intimation emails regarding these deductions must file a revised return before the deadline of 31st December, 2025, to avoid penalties.
Tax officials have identified several concerning patterns during the 2025-26 assessment year period. Many tax returns show donations to unrecognized political parties, even though these parties do not meet the criteria for tax benefits. Some returns also contain exemption claims that do not comply with the prescribed rules. Some taxpayers have significantly inflated their deduction amounts.
The Income Tax Department has stated that it is notifying such taxpayers via text messages and emails under its ‘NUDGE’ program. NUDGE is a program designed to assist taxpayers who have made errors, rather than penalizing them. Taxpayers who have received a message or email from the Income Tax Department should carefully review their filed returns.
Taxpayers need to carefully review their tax returns, especially the sections related to deductions and exemptions. If a taxpayer notices any errors or discrepancies, they can file a revised return by the end of this month, before an official audit begins. Taxpayers who believe that the deductions and exemptions they have claimed are correct and supported by the necessary documentation do not need to take any action.
If a taxpayer fails to file a revised return by 31st December, 2025, despite an error in their original return, they will have to file an updated return starting 1st January. They will then be required to pay additional tax. The Income Tax Department says it wants to give taxpayers the opportunity to correct errors in their returns themselves through its NUDGE program. This will foster a cooperative relationship between taxpayers and the Income Tax Department.
The Income Tax Department is now scrutinizing a larger number of deduction and exemption claims, including cases where taxpayers are not entitled to them, said Tax experts. Modern methods, including analytics, are being used for this purpose. However, if a taxpayer receives a notice from the Income Tax Department even after claiming legitimate deductions and exemptions, there is no need to worry.
