The Central Board of Direct Taxes (CBDT) has launched a targeted data-driven initiative, the ‘NUDGE’ campaign, to curb bogus claims of deductions and exemptions under the Income Tax Act. The exercise uncovered intermediaries operating nationwide networks to file returns with fraudulent claims, particularly donations to Registered Unrecognised Political Parties (RUPPs) and charitable trusts. Many of these entities were non-filers, non-operational, or engaged in illicit activities, including hawala transactions and cross-border fund routing. Using advanced data analytics, CBDT identified high-risk patterns, notably under sections 80G and 80GGC, enabling early detection of suspicious claims. Taxpayers flagged under this drive have been sent SMS and email alerts since 12 December 2025, prompting voluntary revision of current and past year returns to correct any inaccuracies. The NUDGE campaign is designed as a taxpayer-friendly measure, offering an opportunity to rectify returns before enforcement actions. Taxpayers are advised to maintain accurate mobile and email details to receive timely alerts and ensure compliance.
Ministry of Finance
CBDT NUDGEs taxpayers against the claims of bogus deductions through data-driven approach
Fake donations claims to political parties and trusts Under Tax Scanner
Many taxpayers revise returns after CBDT detection drive; SMS and email alerts sent from 12 December 2025
CBDT had launched ‘NUDGE’ campaign to help taxpayers correct returns
Posted On: 13 DEC 2025
Recently, the Central Board of Direct Taxes (CBDT) has acted upon many intermediaries who were involved in filing income tax returns with bogus claims of deductions and exemptions under the Income Tax Act. The exercise revealed that some intermediaries have established network of their agents all over India for filing returns with incorrect claims on commission basis. It was observed that huge amount of bogus claims have been made on account of donation to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions and reduced their tax obligations and have also claimed bogus refunds. Evidence gathered from enforcement actions indicated that RUPPs many of which were non-filers, non-operational at their registered addresses, and are not engaged in any political activity were being used as conduits for routing funds, hawala transactions, cross border remittances and issuing bogus receipts for donations. The CBDT carried out follow up searches against some of these RUPPs and Trusts and gathered incriminating evidences in respect of bogus donations by individuals and bogus CSR by companies.
The CBDT has strengthened its data-driven approach to early detection of suspicious claims and identification of high-risk behaviour patterns, one such risk pattern has been identified for taxpayers who have made claims under section 80GGC or 80G of the Income Tax Act, 1961. The data analytics indicated that many taxpayers are suspected to be indulged in claiming deductions for donation made to suspicious entities or have not provided relevant information to ascertain genuineness of entities. A large number of taxpayers have already revised their Income Tax Returns for current AY that is 2025-26 and have filed updated ITRs for past years.
A targeted NUDGE campaign has been launched as a taxpayer friendly measure, providing them opportunity to update their ITRs and withdraw wrong claims if any. SMSs and Email advisories are being issued from 12th December 2025 to such taxpayers on their registered mobile numbers and emails.
Every taxpayer is advised to ensure that correct mobile and email ids are mentioned in their filings with the Department so that they do not miss out any communication.
Additional information on deduction provisions and filing of Updated Returns is available at www.incometax.gov.in.
THE POLITICAL PARTIES HAVE BEEN ALLOTTED PAN BY THE FINANACE MINISTRY AND THEY HAVE BEEN RECOGNISED UNDER R P ACT AND THEN WHY PENALISE THE DONOR WHEN HE HAS GIVEN CONTRIBUTIONS THROUGH BANLING CHANNEL AND HE HAS THE ACKWNOLEDGMENT OF CONTRIBUTION. THE TAX PAYER CANN OT BE PENALISED. THE GOVERNNMENT HAS FAILED TO KEEP TRACK ON THE ACTIVITIES OF THESE PARTIES AND THEREFORE IT FAULT OF THE GOVENMENT