New Delhi, Jan. 29 -- India's government has underlined a significant shift in tax administration strategy in the Economic Survey 2025-26, tabled in Parliament on Thursday, as officials highlight the growing role of behavioural interventions in strengthening compliance. Rather than relying primarily on audits and litigation, government stated that the Income Tax Department is increasingly deploying a data-driven, gentle-prompting model known as NUDGE (Non-intrusive Usage of Data to Guide and Enable) to encourage voluntary tax corrections and improve revenue mobilisation.

The NUDGE framework represents a behavioural economics-based compliance strategy, one that seeks to influence taxpayer behaviour through information and tailored prompts...