If you recently received an SMS or email from the Income Tax Department regarding your "transactions" for the Assessment Year (AY) 2025-26, you aren't alone. Thousands of taxpayers across India have been alerted over the last 48 hours, leading to a wave of anxiety.
On December 19, 2025, the department issued a crucial clarification: These are not legal notices, but friendly "nudges." Here is everything you need to know about this campaign and the steps you must take before the December 31st deadline.
1. What is the Message About?
The Income Tax Department (ITD) clarified that these communications are advisory in nature. They are part of a data-driven "compliance nudge" aimed at encouraging voluntary correction.
The messages are triggered when the department’s AI systems find a mismatch between:
- What you reported in your Income Tax Return (ITR).
- What was reported about you by banks, stock exchanges, and foreign jurisdictions (found in your AIS/TIS)
2. Why Did I Get It? (Common Triggers)
The ITD has been specifically looking for "high-risk" discrepancies. The most common reasons for receiving this alert include:
- Unreported Foreign Assets: Information received via the Automatic Exchange of Information (AEOI) from foreign countries.
- High-Value Transactions: Large deposits, property purchases, or credit card bills that don't align with your declared income.
- Stock Market Mismatches: Capital gains from shares or mutual funds that weren't accurately captured in the ITR.
- Refund Red-Flags: Claims for high-value deductions (like donations or specific exemptions) that the department finds suspicious.
3. The Dec 31 Deadline: Your Window of Opportunity
The clock is ticking. You only have until December 31, 2025, to rectify your filings for the current assessment year. After this date, your options become much more expensive and legally complex.
| Action | Deadline | Consequence of Missing |
| Revised Return | Dec 31, 2025 | Cannot correct errors; high risk of scrutiny. |
| Belated Return | Dec 31, 2025 | Penalty up to ₹5,000; loss of certain carry-forward benefits. |
| Updated Return | Post-Dec 31 | Huge additional tax (up to 70% in some cases). |
4. How to Respond: A Step-by-Step Guide
- Log in to the E-Filing Portal: Go to
incometax.gov.in - Access the Compliance Portal: Navigate to the 'Pending Actions' tab and select 'Compliance Portal'.
- Review the 'e-Verification' Tab: Here, you will see the specific financial transactions the department has flagged.
- Check Your AIS: Compare the flagged transaction with your Annual Information Statement (AIS).
Submit Feedback: * If the info is incorrect (e.g., duplicate entry): Choose "Information is not correct" and provide details.
- If the info is correct but missed: You must file a Revised Return.
- Verify & File:
Ensure any additional tax is paid and the revised return is e-verified.
5. What If My Filing Is Correct?
If you have reviewed your AIS and your ITR, and everything is perfectly aligned, the department has stated that you can simply ignore the message. However, it is a "best practice" to still log into the Compliance Portal and submit feedback confirming the information is already included in your return. This "closes" the flag in the system and prevents future automated follow-ups.
See More: ITR Refund Delay in 2025: Complete Guide to Reasons, Status Check & Quick Solutions
The Bottom Line
This "nudge" campaign is part of the government's move toward a transparent, faceless tax regime. Don't view it as a threat—view it as a free "safety check" for your financial records.
