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CBDT Launches Targeted Nudge to Curb Bogus Donation Deductions

Data analytics flagged suspicious donation deductions, prompting taxpayer advisories to correct filings.

Overview

  • From December 12, the Income Tax Department is sending SMS and email advisories to identified taxpayers to update ITRs and withdraw wrong claims.
  • Analytics flagged high‑risk deductions under Sections 80GGC and 80G linked to donations that could not be substantiated.
  • Enforcement findings show some RUPPs and trusts were non-operational or non-filers and were used to route funds and issue fake receipts.
  • Follow-up searches uncovered material indicating bogus individual donations and corporate CSR claims, with investigations continuing.
  • A large number of taxpayers have already revised AY 2025–26 returns and filed updated returns for prior years, and the department urged taxpayers to keep contact details current.