India's income tax department's 'NUDGE' campaign has successfully resulted in 1.25 crore updated Income Tax Returns () filings over the past two years, leading to an additional tax collection of ₹9,494 crore. This initiative leverages to prompt taxpayers about potential undeclared income or errors.
₹9,494 crore
Additional Tax Collected (Past 2 Years)
⏳ Time Machine
How today’s news fits into the bigger picture
April 2022
ITR-U Form Introduced
The Indian government amends the Income Tax Act to introduce the (Updated Income Tax Return) form, allowing taxpayers to correct errors or report omitted income within two years of the assessment year. This marked a significant policy shift towards facilitating voluntary compliance.
July 2023
Compliance Campaign Begins
The Income Tax department actively begins implementing a 'NUDGE' campaign, using to identify discrepancies and prompt taxpayers to file updated returns. This initiative focused on encouraging citizens to rectify their tax positions voluntarily before facing stricter actions.
March 2026
Record ITR Filings
The total number of Income Tax Returns (ITRs) filed for the Assessment Year 2025-26 crossed 8.25 crore by July 31, 2025, reflecting a growing taxpayer base and increasing digital adoption in tax filing, which provides more data for 'NUDGE' initiatives.
Today
Government announces its 'NUDGE' drive has recovered ₹9,494 crore in additional taxes from 1.25 crore updated ITR filings.
What happens next?
The Income Tax department is expected to continue and expand its data-driven 'NUDGE' initiatives, potentially leading to further increases in voluntary tax compliance and collections.
The Income Tax department's proactive 'NUDGE' campaign has driven over **1.25 crore** taxpayers to file updated Income Tax Returns (ITR-U) in the last two years. This has led to a significant collection of **₹9,494 crore** in additional taxes. The initiative uses data analysis to identify discrepancies and gently remind individuals to correct their tax filings, rather than immediately imposing penalties. It highlights the government's shift towards technology-driven compliance and aims to broaden the tax base by encouraging voluntary disclosures. This method allows taxpayers to correct omissions or errors without facing harsher consequences, fostering greater transparency in the tax system.
💭 If you're wondering…
ITR-U stands for Income Tax Return - Updated. It's a special form introduced in 2022 that allows you to correct any mistakes or add income you missed reporting in your original tax return for up to two years past the assessment year, by paying additional tax.
Did this story help?
Official sources
Knowledge Chain — tap a concept