New Delhi, Dec. 24 -- The Central Board of Direct Taxes (CBDT) has launched a new initiative urging taxpayers to voluntarily review and correct ineligible claims for deductions and exemptions in their income tax returns (ITRs) for the assessment year (AY) 2025-26, ahead of the December 31 deadline for filing revised returns.

Under the Non-intrusive Usage of Data to Guide and Enable (NUDGE) campaign, the Income Tax Department has identified cases where taxpayers may have claimed deductions or exemptions to which they were not entitled, resulting in an understatement of income, the CBDT said in an official statement.

Data Analytics and Risk Assessment

According to the CBDT, cases have been identified through its risk management framework...