NUDGE Emails From the Income Tax Department: What to Do

An SMS or email from the Income Tax Department saying that information about you "appears" not to match your return, or asking you to review a deduction or your foreign assets, is usually part of a NUDGE campaign. NUDGE stands for Non-intrusive Usage of Data to Guide and Enable. CBDT describes these messages as advisories that give you a chance to correct your return. They are not notices issued under a section of the Act: a formal notice carries a DIN (document identification number) and appears under e-Proceedings on the portal. You don't reply to the message itself.

What they do signal is that the department's data and your return disagree. Act on that before it turns into a notice: check the data, then either correct the return or keep your evidence that it was right.

The campaigns so far

The department has run several targeted rounds. Each told taxpayers what to check and how long they had.

The first foreign assets round, according to CBDT, led 24,678 taxpayers to revisit their returns and disclose foreign assets of ₹29,208 crore.

First, check the message is genuine

Messages that imitate the department are common, so treat the message only as a prompt to look. Don't share a password or OTP, pay through a link, or send documents by email in reply to any tax message.

Don't click a link in the message either. Type incometax.gov.in yourself and log in. If the matter is real, the data behind it will be visible to you in AIS.

What to do for each type

AIS mismatch

The message means something in your AIS (Annual Information Statement) is larger than, or missing from, your return. Common examples are FD interest, dividends, share or mutual fund sales, rent, or a high-value transaction such as a property purchase.

1. Log in and open AIS from the dashboard menu, then click Proceed.
2. Pick the financial year the message names and look at each section of Part B: TDS/TCS, SFT (high-value transactions) and Other Information.
3. Compare every entry with what you reported in the return.

Then, for each gap:

• The AIS entry is wrong (a duplicate, someone else's transaction, a wrong amount): give feedback on it in AIS. Our AIS feedback guide shows which option to pick.
• The AIS entry is right and the return missed it: correct the return. For AY 2026-27, that is a revised return. For an earlier year whose revision window has closed, it is an updated return (ITR-U), which carries additional tax. The ITR-U guide covers the time limits and the extra tax.
• The entry is right but already covered (for example, the sale value is in AIS and you reported the capital gain): no correction is needed. Keep the working.

A worked example: AIS for FY 2025-26 shows FD interest of ₹64,000 from your bank, and your return shows ₹40,000 of interest. If the bank's figure is correct and your income falls in the 20% slab, the missing ₹24,000 means ₹4,992 of extra tax with 4% cess, plus interest. Correcting it in a revised return now costs that tax and interest. Leaving it means CPC (the Centralised Processing Centre) can add it later, with interest to the date of the demand.

80G or 80GGC donation claims

These messages went to people who claimed a deduction for a donation to a charitable institution (80G) or a political party (80GGC) that the department's data marked as suspicious or could not verify.

1. Find your donation receipt and check it was paid by cheque, draft or electronic transfer. The department's 80G FAQ notes that cash donations above ₹2,000 get no deduction.
2. For an 80G claim, check you have the donee's certificate in Form 10BE. The donee reports each donor in Form 10BD, and the FAQ says your claim must match that report.
3. Check the regime. The same FAQ says 80G cannot be claimed under the new tax regime.
4. If the donation was not real, or you can't support it, withdraw the claim: a revised return for the current year, or an updated return for an earlier one, paying the tax and interest.

If the donation was genuine and documented, keep the receipt, Form 10BE and bank statement. You do not need to file anything because of the message alone.

Foreign assets and foreign income

These come from data India receives from over 100 partner countries under the Common Reporting Standard and from the United States under FATCA. A resident who holds a foreign bank account, foreign shares (including ESOP or RSU shares of a foreign parent company) or other foreign assets must report them in Schedule FA, and foreign income in Schedule FSI, even if no tax is due on them.

1. Log in, open AIS, and go to Reports > Foreign Assets Information on the Compliance Portal. Select the calendar year and download the PDF.
2. Compare it with Schedule FA in your return. The CBDT's note on this feature says the AIS information is not a complete record. Report every foreign asset you hold, whether or not it appears.
3. If anything is missing, revise the return while the window is open. ITR-1 and ITR-4 can't be used if you have foreign assets, so the revised return may need ITR-2 or ITR-3.

Smaller undisclosed foreign assets may also fall within the FAST-DS 2026 disclosure window. Speak to a chartered accountant before using it.

Crypto and other virtual digital assets

Sales of crypto through an Indian exchange usually show in AIS, because the exchange deducts 1% TDS under section 194S. If AIS shows VDA transfers that are not in Schedule VDA of your return, treat it like any other AIS mismatch: check the figures, then correct the return or give AIS feedback. For AY 2026-27 and earlier years, gains on VDAs are taxed at a flat 30% with no deduction other than the cost of acquisition.

If you decide no change is needed

Do nothing in response to the message itself. Keep a short note of what you checked and the documents that support your return, in case a formal notice follows. If the message came with an e-campaign response option on the Compliance Portal, use it to record that the information is already covered.

If you check this for yourself and family members, myutils.me brings back each PAN's AIS and TIS for every year the portal offers, after you add the PAN or press Sync, so you can compare them with the filed returns in one place. Any feedback or revised return is still done on the portal.

FAQ

Is a NUDGE email a tax notice?

No. It is an advisory sent by SMS and email. A formal notice is issued under a specific section, carries a DIN and appears under e-Proceedings on the portal.

What happens if I ignore a NUDGE message?

Nothing happens because of the message. But the mismatch it points to stays in the department's data. If your return is wrong, it can lead to a proposed adjustment, a notice or, for foreign assets, penalties under the Black Money Act.

The message has a deadline that has passed. Can I still correct the return?

Often yes, through an updated return (ITR-U) within its time limit, with additional tax. The revision window for that year may have closed. See the deadlines for AY 2026-27.

I am in the new regime and got an 80G message. Why?

Check whether the return claimed 80G at all. The new regime does not allow it, so a claim there would itself be an error to correct.

Sources

• PIB, "CBDT NUDGEs taxpayers against the claims of bogus deductions through data-driven approach", 13 December 2025
• PIB, "CBDT launches 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets", 27 November 2025
• PIB, "CBDT launches Electronic Campaign to address income and transaction mismatches", 17 December 2024
• CBDT note on foreign assets information (CRS/FATCA) in AIS, July 2026
• FAQs on section 80G, NUDGE campaign, Income Tax e-Filing portaltoupload.pdf>)
• NUDGE on Schedule FA, Income Tax e-Filing portal
• TDS on payment for the transfer of virtual digital assets, Income Tax Department