Home India Ministry of Finance CBDT NUDGEs taxpayers against the claims of bogus deductions...
Date: 2025-12-13 Category: Press Release State: Union Government Country: India

CBDT NUDGEs taxpayers against the claims of bogus deductions through data-driven approach

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The Central Board of Direct Taxes (CBDT) has launched a data-driven initiative to identify and address bogus deduction claims, particularly those related to donations to Registered Unrecognized Political Parties (RUPPs) and trusts. The CBDT has launched a 'Nudge' campaign to inform taxpayers who have made suspicious claims and provide them with an opportunity to revise their Income Tax Returns (ITRs). SMS and email advisories are being sent to taxpayers starting December 12, 2025. **Key Points / Main Content** * **Detection of Bogus Claims:** * CBDT has acted against intermediaries involved in filing income tax returns with bogus claims of deductions and exemptions. * Huge amounts of bogus claims have been made as donations to RUPPs and charitable institutions, reducing tax obligations and claiming bogus refunds. * RUPPs are being used as conduits for routing funds, hawala transactions, and cross-border remittances. * Evidence has been gathered regarding bogus donations by individuals and bogus CSR by companies. * **Data-Driven Approach:** * CBDT has strengthened its data-driven approach for early detection of suspicious claims and identification of high-risk behavior patterns. * A risk pattern has been identified for taxpayers claiming deductions under section 80GGC or 80G for donations to suspicious entities. * **'Nudge' Campaign:** * A targeted NUDGE campaign has been launched, allowing taxpayers to update their ITRs and withdraw wrong claims. * SMS and email advisories are being issued from December 12, 2025, to registered mobile numbers and emails. * Taxpayers should ensure correct mobile and email ids are mentioned in their filings. * 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. * **Additional Information:** * Additional information on deduction provisions and filing of Updated Returns is available at www.incometax.gov.in. **Impact Analysis** **Taxpayers** * **Impact:** Taxpayers who have made suspicious donation claims under sections 80GGC or 80G are being targeted. * **Action Required:** Taxpayers need to update their ITRs and withdraw any incorrect claims. They should also ensure their contact information (mobile and email) is accurate. **Intermediaries** * **Impact:** Intermediaries involved in filing income tax returns with bogus claims of deductions and exemptions are facing scrutiny. * **Action Required:** Discontinue filing returns with incorrect claims on commission basis. **Registered Unrecognized Political Parties (RUPPs) and Trusts** * **Impact:** RUPPs and Trusts that have been used as conduits for routing funds are under investigation. * **Action Required:** RUPPs and Trusts under investigation must cease activities relating to routing funds, hawala transactions, cross border remittances and issuing bogus receipts for donations.

Key Entities Referenced

Central Board of Direct Taxes (CBDT): The primary agency conducting the detection drive and NUDGE campaign against bogus deduction claims. NUDGE campaign: A taxpayer-friendly campaign by CBDT to encourage taxpayers to revise their Income Tax Returns and withdraw incorrect claims. Income Tax Act: The principal law governing the filing of income tax returns and deductions, under which the bogus claims are made. Section 80GGC or 80G of the Income Tax Act, 1961: Specific sections of the Income Tax Act related to claiming deductions for donations, often targeted by taxpayers making suspicious claims. Registered Unrecognised Political Parties (RUPPs): Entities used as conduits for routing funds and issuing bogus receipts for donations, targeted by the CBDT's actions.
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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 प्रव तथ: 13 DEC 2025 2:59PM by PIB Delhi 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.income tax.gov.in. **** NB/KMN (रलीज़ आईडी: 2203457) आगंतुक पटल : 5695 इस वज्ञ को इन भाषाओ ंम पढ़: Gujarati , Urdu , Marathi , ही , Punjabi , Tamil , Kannada

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