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Taxation Central Ministry of Finance Income Tax Act, 1961

CBDT issues a Press Release regarding Initiative for Voluntary Review of Ineligible Deduction and Exemption Claims

23-Dec-2025 | NA

CBDT (Income Tax) vide Press Release has announced a data-driven compliance initiative aimed at encouraging taxpayers to voluntarily review and correct potentially ineligible deduction and exemption claims made in their Income-tax Returns (ITRs) for Assessment Year 2025-26.

Key Highlights of the Initiative:
1. Under its risk management framework, CBDT has used advanced data analytics to identify cases where taxpayers may have claimed ineligible refunds.
2. Identified taxpayers are being contacted through SMS and email under the "Non-intrusive Usage of Data to Guide and Enable (NUDGE)" campaign, requesting them to review their ITRs and voluntarily correct any errors.
3. Taxpayers are advised to file revised ITRs on or before 31 December 2025, which is the due date for revision for AY 2025-26, to avoid further enquiries or proceedings.
4. The initiative reflects a trust-first and taxpayer-centric approach, providing an opportunity for voluntary compliance before initiation of enforcement actions.
5. Taxpayers who do not revise their returns by 31 December 2025 may still file an updated return from 1 January 2026, as permitted under law, subject to payment of applicable additional tax.

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