IT Dept Nudges Taxpayers: Recheck Deductions, Avoid Penalties by Dec 31, 2025!

• Income Tax Department sent emails to taxpayers whose deduction/exemption claims were flagged by risk analytics as potentially ineligible.
• This is part of a 'NUDGE' campaign for AY 2025–26, encouraging voluntary review and correction before the December 31, 2025 deadline.
• Common issues include donations to unrecognised political entities, incorrect exemption claims, and overstated deductions.
• Taxpayers should examine their filings carefully; correct inaccuracies by month-end to prevent official investigations.
• Those confident in legitimate claims need no action; errors can be fixed via updated return after January 1 with extra tax.

Why It Matters: IT Dept urges taxpayers to review flagged deductions by Dec 31, 2025, to avoid penalties.