The Income Tax Department has begun issuing SMS and email alerts to taxpayers who have made incorrect deduction claims linked to donations to unrecognised political parties or charitable organisations, the finance ministry said on Saturday. According to the Central Board of Direct Taxes (CBDT), data analysis revealed a large number of fraudulent claims involving donations to Registered Unrecognised Political Parties (RUPPs) and certain charitable institutions. These claims were used to lower tax liabilities and, in some cases, to obtain false refunds.

As a taxpayer-friendly initiative, the department has launched a targeted “NUDGE” campaign, giving individuals an opportunity to revise their Income Tax Returns and withdraw incorrect claims, if any. The advisory messages are being sent from December 12, 2025, to affected taxpayers on their registered mobile numbers and email addresses.

The CBDT said enforcement actions showed that many RUPPs were non-functional, did not file returns, were not operating from their registered addresses, and were not involved in any political activity. These entities were allegedly used to channel funds, facilitate hawala and cross-border transactions, and issue fake donation receipts. Follow-up searches on some RUPPs and trusts uncovered evidence of bogus individual donations and false CSR claims by companies.

Data analytics also indicated that several taxpayers may have claimed deductions for donations to suspicious entities or failed to provide sufficient information to verify their legitimacy. The CBDT noted that many taxpayers have already revised their returns for the current assessment year 2025–26 and filed updated returns for previous years. The department advised taxpayers to ensure their mobile numbers and email addresses are correctly updated in official records to avoid missing important communications.