NUDGE Tax Notices: What They Are, Why Millions Received Them, and What to Do

• Income Tax Department sends "NUDGE" notices to taxpayers to correct ITR discrepancies, not for strict action.
• NUDGE stands for Non-intrusive Usage of Data to Guide & Enable, acting as an advisory message for data mismatches.
• Notices target high-income taxpayers (over ₹50 lakh annual income) and those with discrepancies in income, deductions, or high-value transactions.
• The Tax Department uses risk analytics and third-party data (AIS, banking, investments) to identify mismatches.
• If you receive a NUDGE notice, reconcile your ITR with AIS, file a revised/updated ITR if needed, and avoid ignoring it to prevent future penalties.