Income Tax NUDGE Campaign Alert: ITR Flagged for 80G Donations, Exemptions or Mismatched Deductions — Revised Return Explained

Income Tax NUDGE Campaign: Why You Received the Message & What to Do

Over the last few days, many taxpayers have received emails or SMS from the Income Tax Department under its data-driven NUDGE campaign, asking them to review certain deductions and exemption claims in their Income Tax Returns.

If you’ve received this message, it usually means one thing:

Your ITR has been flagged by risk analytics for potentially ineligible claims.

🔍 Why were you flagged?

Some common high-risk patterns include:

• Donation claims to suspicious or non-compliant entities (including certain political parties and NGOs) under sections 80G / 80GGC
• Incorrect or invalid PAN of the donee quoted in the ITR
• Deductions and exemptions not matching data available with the department (Form 26AS, AIS/TIS, Form 16, third-party data, etc.)

This is part of a wider clean-up drive against bogus claims and deductions using data analytics and information sharing.

🤝 What is the Department really saying?

The message essentially means: “We’ve noticed potential issues in your claims. Please review and voluntarily correct them before we move to enforcement.”

Key points to understand:

• You have a window to self-correct by filing a revised return and paying the correct tax and interest.
• After the revision window closes, correction is still possible via an updated return, but with additional tax.
• Taxpayers with genuine and fully supported claims should not panic, but should keep records ready.

✅ What should you do next?

1️⃣ Revisit your ITR

• Donations
• Large or unusual deductions
• Newly claimed benefits

2️⃣ Match every claim with evidence

• Donation receipts and payment proofs
• Form 16 / 16A, AIS/TIS
• Investment and loan certificates

3️⃣ Fix what doesn’t stand scrutiny

If a claim is doubtful or inflated, consider correcting it through a revised return within the allowed time.

4️⃣ Consult a professional

If unsure, consult a Chartered Accountant or tax professional rather than relying on informal advice.

🧾 Final Word

The Income Tax NUDGE campaign is not a notice or penalty—it is an opportunity given by the department to voluntarily review and correct discrepancies before formal proceedings begin.

Taxpayers with genuine claims and proper documentation should not be concerned. However, where claims are aggressive, unsupported, or based on incorrect information, timely corrective action can prevent interest, penalties, and future litigation.

A careful review and professional guidance at this stage can ensure compliance and peace of mind.