3 min readUpdated: Aug 3, 2026 03:23 PM IST
An amount of over Rs 9,493 crore was collected as additional tax over the last two years after 1.25 crore updated income tax returns were filed by taxpayers following the NUDGE campaign of the Central Board of Direct Taxes (CBDT). In a written response to a question on wrongful tax relief claims in Lok Sabha, Minister of State for Finance Pankaj Chaudhary on Monday said the Income Tax Department has detected cases of wrongful tax reliefs and claims of non-genuine deduction during the last five years.
Such cases of wrongful tax claims have come to light, inter alia, through data analytics and verification exercises, Chaudhary said, adding that these cases were then further corroborated through searches and surveys carried out against entities, professional intermediaries and other persons suspected of facilitating such claims.
In the last two financial years 2024-25 and 2025-26, the number of updated or revised income tax returns (ITRs) filed were 1.25 crore and additional tax paid was Rs 9,493.66 crore. The revenue impact of the NUDGE (Non-intrusive Usage of Data to Guide and Enable) campaign was Rs 12,121.91 crore, the minister said.
As per the latest data, over 5.9 crore ITRs were filed for assessment year 2026-27 by July 31.
Through its internal data analytics system, the tax department has been nudging taxpayers through e-mails, text messages and outreach programmes to file updated returns, which even results in non-filers coming under the ambit. In February this year, CBDT Chairman Ravi Agrawal in an interview with The Indian Express had said that around 60% of the 1.11 crore people who had responded to the tax department’s NUDGE campaign, by revising or updating their returns, were non-filers.
The CBDT has undertaken NUDGE campaigns which are technology-driven measures that leverage data analytics, legislative enablement, behavioural insights and digital communication platforms for improved tax collection efficiency by shifting the focus from post-facto enforcement to preventive, technology enabled compliance in a non-intrusive manner, the reply stated. Under these campaigns, communications are sent to select taxpayers after risk analysis to update their filed ITRs. The taxpayers are selected on the basis of advanced risk analysis identifying incorrect or non-reporting of assets or income, or excess claims of deductions or exemptions in their ITRs.
The NUDGE campaign, which began in late 2024, is now called SAKSHAM NUDGE: S for sankalan (systematic compilation of data), A for anusandhan (research and analytics), K for kriyanvyan (identifying whom to nudge), S for sampark (communicating to create awareness and guide behaviour), H for hastak (handholding and facilitation, such as through FAQs), A for adhikaar (allowing revision of returns to foster trust), and M for mulyankan (assessment).
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The Income Tax Department has implemented in-house data analytics system through which it assimilates and analyses information and transactional data received from third-parties, including Statement of Financial Transaction (SFT), Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) statements, Goods and Services TAX (GST) data, high-value transactions from banks and financial institutions, purchase/sale of immovable property from IG (Registration)/Registrar/Sub-registrar, etc. for identifying instances of potential tax evasion.