Income Tax Department sends ‘nudge’ alerts: Could your ITR–AIS mismatch cost you big?

New Delhi: The Income Tax Department has stepped up its use of data analytics and preventive compliance tools by issuing “nudge” intimations to taxpayers where discrepancies have been detected between income declared in income tax returns and information available in the Annual Information Statement (AIS). These alerts are aimed at encouraging voluntary correction before stricter enforcement action is initiated.

Recently, a nudge intimation shared by chartered accountant Ajay Konale highlighted a case where a taxpayer was flagged for purchasing immovable property worth around ₹2.28 crore during the financial year 2024–25. According to the communication, the transaction reflected in the AIS did not appear consistent with the income disclosed in the return. The taxpayer was advised to review the details, reconcile the mismatch and revise the return for assessment year 2025–26, if required.

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Such intimations are increasingly being sent in cases involving high-value transactions, including property purchases, where the transaction value does not align with the reported income. Tax experts have clarified that these nudges are not scrutiny notices or assessment orders. Instead, they serve as a non-intrusive compliance mechanism that allows taxpayers to correct genuine errors or explain discrepancies at an early stage. Ignoring these alerts, however, may later be interpreted as a conscious non-compliance.

In parallel, the Central Board of Direct Taxes (CBDT) has launched a targeted ‘NUDGE’ campaign against bogus claims of deductions and exemptions, particularly fake donation claims under Sections 80G and 80GGC of the Income Tax Act. Based on enforcement inputs and data analysis, suspicious patterns were identified, following which SMS and email advisories were sent to flagged taxpayers from December 12, 2025.

Taxpayers receiving a nudge intimation are advised to log in to the income tax e-filing portal and carefully review their AIS. Each entry should be reconciled with the income and transactions reported in the ITR. If the AIS data is correct but was missed or wrongly reported, a revised return should be filed by December 31 for the relevant assessment year. If the AIS information is incorrect or partially correct, feedback can be submitted in the AIS section by accepting, partially accepting or disputing the entry with reasons. Supporting documents such as loan records, ownership papers or proof of genuine donations should be kept ready.

Alongside compliance nudges, the Income Tax Department has also issued a strong warning against rising tax-related fraud. Taxpayers, particularly senior citizens, have been cautioned about fake emails, SMS messages, phone calls and websites impersonating the department. Fraudsters are attempting to steal sensitive information such as PAN details, passwords and OTPs, which could lead to serious financial losses.

The department has reiterated that taxpayers should use only the official portal, incometax.gov.in, for all tax-related services and verify any communication claiming to be from the Income Tax Department. It has clarified that it never seeks OTPs, passwords or personal details via email, SMS or phone calls. Suspicious emails should be reported to webmanager@incometax.gov.in, with a copy to incident@cert-in.org.in. Taxpayers can also contact the official helpline numbers 1800 103 0025 or 080 46122000 for assistance.

The CBDT has described the combined compliance and awareness drive as a taxpayer-friendly initiative aimed at voluntary correction, improved transparency and protection against cyber fraud, especially for vulnerable groups such as senior citizens.