How to Respond to IT Dept Nudge Intimations on ITR–AIS Mismatch
The Income Tax (IT) Department has deployed data-driven compliance tools and intensified its use of ‘nudge’ notifications. These automated alerts are sent to taxpayers when discrepancies are detected between the income reported in their Income Tax Return (ITR) and the information available in their Annual Information Statement (AIS).
Chartered Accountant Ajay Konale highlights an important scenario regarding tax compliance: a taxpayer received a notification concerning the acquisition of immovable property valued at approximately ₹2.28 crore for the Financial Year 2024-25.
This transaction was noted in the Annual Information Statement (AIS) and was found to be inconsistent with the income reported in the taxpayer's Income Tax Return (ITR). As a result, the taxpayer was advised to review the details of the transaction, address the discrepancies, and consider revising their ITR for Assessment Year 2025-26 if necessary.
In cases involving high-value transactions, such as the acquisition of immovable property, a notification is typically issued. The primary concern in these situations is that the recorded transaction value appears to be inconsistent with the income reported by the taxpayer in their tax return.
Chartered Accountant Ajay Konale explained that the ‘nudge’ notifications issued to taxpayers should not be confused with scrutiny notices or formal assessment orders. These notifications act as a non-intrusive, preventive compliance tool, giving taxpayers an early opportunity to correct genuine mistakes or clarify discrepancies in their filings.
He emphasised that responding promptly to these notifications is generally seen as an effort to rectify errors, whereas failing to address them may later be interpreted as a deliberate attempt to conceal or misreport information.
The Central Board of Direct Taxes (CBDT) has launched a focused initiative known as the ‘NUDGE’ campaign, aimed at addressing fraudulent claims related to deductions and exemptions. This campaign specifically targets suspicious donation claims filed under Sections 80G and 80GGC of the Income Tax Act.
Following comprehensive data analysis and the identification of unusual patterns, the CBDT has begun sending advisories via SMS and email to taxpayers flagged as high-risk cases. This outreach effort commenced on December 12, 2025, as part of the CBDT’s commitment to enhancing compliance and preventing tax evasion.
Read Also: How Income Tax Software Assists Taxpayers After the Filing?
What do Taxpayers Need to Do?
Taxpayers who receive a nudge intimation are advised to log in to the Income Tax e-filing portal to review their Annual Information Statement (AIS) in detail. It is important to reconcile each entry in the AIS with the income and transactions reported in the Income Tax Return (ITR) to pinpoint any discrepancies or mismatches. This process will help ensure that all information is accurate and up-to-date.
Taxpayers are encouraged to carefully evaluate the accuracy of the data presented in their Annual Information Statement (AIS). If the AIS information is accurate but has been overlooked or inaccurately reported in the original tax return, taxpayers should take the necessary steps to file a revised return by December 31st of the applicable assessment year.
On the other hand, if the AIS data is found to be incorrect or only partially accurate, taxpayers should provide feedback directly within the AIS section. This feedback can consist of accepting, partially accepting, or disputing the information, and it should include clear explanations for any discrepancies noted.
When preparing for potential scrutiny regarding high-value transactions or deduction claims, it's essential for taxpayers to keep supporting documentation readily available. This documentation should include important proof, such as loan details, ownership records for properties, and evidence of legitimate donations. Additionally, it's crucial to ensure that your mobile number and email ID are correctly updated on the tax portal. This will help you receive all important communications from the tax authorities.
The Central Board of Direct Taxes (CBDT) has described the campaign as a beneficial initiative for taxpayers. This program aims to promote voluntary correction of errors in tax filings prior to the commencement of more stringent enforcement measures.