Mumbai, December 17: Over the past week, many taxpayers have received emails from the Income Tax Department flagging high-value transactions linked to their Permanent Account Numbers (PANs). In several cases, recipients say they either did not report these transactions in their income tax returns or the amounts mentioned appear far higher than their declared income.

The messages are part of the department’s expanded use of data analytics and preventive compliance tools. These communications, known as “nudge” intimations, are sent when discrepancies are detected between income declared in tax returns and information available in the Annual Information Statement (AIS). The aim is to encourage voluntary correction before stricter enforcement measures are taken. New Income Tax Bill 2025 Passed in Lok Sabha: All You Need to Know About Key Changes.

"Bulk mails sent by @IncomeTaxIndia flagging MISMATCHES between income reported in the ITR filed & significant transactions as per AIS. This in many cases include transactions not relevant to the reported income , such as purchase of property or vehicles. Such acquisitions may be made out of accumulated savings, loans, gifts, or past income, and there is no requirement or specific place in the ITR to report these as income," Chartered accountant Abhas Halakhandi wrote on X.

Tax professionals stress that these nudges are not scrutiny notices or assessment orders. Instead, they are early-stage alerts that allow taxpayers to correct genuine mistakes or explain mismatches. However, experts warn that ignoring such messages may later be viewed as deliberate non-compliance if discrepancies remain unresolved. ITR Filing 2025: IT Department Refutes Reports on Tax Return Filing Date Extension, September 15 Remains Deadline.

Alongside this, the Central Board of Direct Taxes (CBDT) has launched a targeted NUDGE campaign against bogus claims of deductions and exemptions, especially fake donation claims under Sections 80G and 80GGC of the Income Tax Act. Based on data analysis and enforcement inputs, SMS and email advisories have been sent to flagged taxpayers starting December 12, 2025.

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(The above story first appeared on LatestLY on Dec 17, 2025 11:40 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).