Income Tax Dept 'Nudges' Taxpayers to Withdraw Bogus Donation Claims

New Delhi, Dec 15 (KNN) The Income Tax department has started sending text messages and email advisories to taxpayers providing them opportunity to update their tax returns (ITRs) and withdraw bogus claims made on account of donation to registered unrecognised political parties (RUPPs) or charitable institutions to reduce tax liabilities.

The move is part of the tax department's ‘NUDGE’ campaign to help taxpayers correct returns.

The Central Board of Direct Taxes (CBDT), the apex policy making body concerning direct taxes, recently launched a crackdown on many intermediaries who were involved in filing income tax returns with bogus claims of deductions and exemptions under the Income Tax Act.

During this exercise, it was  revealed that some intermediaries have established networks 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," the tax department said.

The department said that 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," the tax department said on Saturday in a release.

(KNN Bureau)