NUDGE Campaign: CBDT Warns Taxpayers Against Fake Donation Deductions

The Income Tax Department is taking action against the intermediaries who helped in the Income Tax Return (ITR) filing with bogus claims of deductions and exemptions under the Income Tax Act.

It was discovered that some of these intermediaries have set up a network of their agents across India for filing ITR with bogus claims in exchange for a commission. The claims have been largely made towards the donations to Registered Unrecognised Political Parties (RUPPs) or Charitable Institutions that were either non-filers, non-functional, or not carrying out any actual political activity. These entities were allegedly being misused for channelling funds and issuing fake donation receipts.

Using advanced data analytics, the CBDT has identified suspicious claims made under Sections 80G and 80GGC of the Income Tax Act. Taxpayers who did not give enough details to prove the genuineness of their donations were identified as high-risk cases.

Therefore, the CBDT under its NUDGE campaign is issuing SMS and email advisories from December 21, 2025, encouraging them to review their returns and voluntarily correct any wrong claims. Many taxpayers have already revised their returns for the current assessment year and updated past income tax return filings.