The Income Tax Department has advised taxpayers to recheck their deduction and exemption claims after its risk analytics systems flagged certain filings as potentially ineligible. The department also clarified why several taxpayers received intimation emails and outlined the steps required to avoid penalties ahead of the December 31, 2025 deadline for filing revised income-tax returns (ITRs).
For the Assessment Year 2025–26, tax authorities have identified multiple red flags in returns. These include donations made to unrecognised political entities, which do not qualify for tax benefits, exemption claims that fail to meet statutory requirements, incorrect identification details of charitable recipients, and overstated deduction amounts beyond permissible limits.
The department explained that affected taxpayers are being contacted through SMS and email under its ‘Non-intrusive Usage of Data to Guide and Enable (NUDGE)’ programme, which is designed to encourage voluntary correction rather than impose immediate penalties.
What Taxpayers Should Do
Taxpayers who receive such communication are advised to carefully review their ITRs, particularly the sections relating to deductions and exemptions. If any errors or inconsistencies are found, they should file a revised return before December 31, 2025, to avoid further scrutiny or possible action.
Those who are confident that their claims are genuine and supported by proper documentation are not required to take any action. The department emphasised that the outreach is limited to cases where returns were flagged by its systems.
Missing the Deadline
Taxpayers who fail to revise their returns within the stipulated period can still correct errors by filing an updated return from January 1, though this will involve additional tax liability as prescribed under the law.
The move reflects the department’s broader shift towards using technology-driven compliance tools to promote accurate reporting. By flagging discrepancies early and allowing taxpayers to self-correct, authorities aim to foster a more cooperative tax environment while safeguarding revenue.
How to File a Belated Income-Tax Return
To file a belated return, taxpayers can follow these steps on the income tax e-filing portal:
- Log in to the income tax e-filing portal.
- Click on ‘e-File’, select ‘Income Tax Returns’, and then ‘File Income Tax Return’.
- Choose the relevant assessment year.
- Select ‘Online’ as the filing mode and proceed.
- Click on ‘Start New Filing’.
- Select the applicable filing status.
- Choose the appropriate ITR form.
- Verify details under the ‘Personal Information’ section.
- In the filing details section, select Section 139(4).
- Enter income details under the respective heads and complete the filing after paying the applicable tax.
