ITR Filing FY 2025-26: The Income Tax Department (ITD) announced on Thursday that recent communications sent to certain taxpayers regarding their transactions are advisory in nature. These messages aim to facilitate voluntary compliance rather than initiate enforcement actions.
In a post on X ( formerly twitter), the department clarified that these communications were issued only in cases where there is a noticeable and significant gap between the disclosures made in income tax returns (ITRs) and the information received by the tax department from reporting entities during the year.
'The communication is just an advisory sent in only those cases where there is an apparent significant gap between disclosures in the ITR & information as received from the Reporting Entities', the department explained.
Some references have come to the notice of the Income Tax Department regarding recent communication sent to taxpayers pertaining to transaction(s) made by them.
— Income Tax India (@IncomeTaxIndia) December 18, 2025
Taxpayers may please note that such communication is to facilitate the taxpayers & make them aware of the information…
The ITD emphasised that the objective is to offer taxpayers an opportunity to make voluntary corrections by reviewing their Annual Information Statement (AIS) and submitting feedback through the Compliance Portal. If necessary, taxpayers can revise their returns or file a belated return if they have not already done so.
The department also reminded taxpayers that the last date for revising or filing a belated return for the assessment year 2025-26 is December, 31 2025.
This advisory follows the scrutiny of Income Tax Returns (ITRs) for the assessment year 2025-26, where taxpayers have made incorrect claims to reduce their tax liability. Since December, 12 the department has been sending alerts via email and SMS to such taxpayers, advising them to file revised ITRs. The department is also investigating companies that file bulk ITRs on behalf of salaried individuals.
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Some firms or companies assisting with ITR filings often encourage individuals to make incorrect claims in their returns to reduce their tax burden. This includes the submission of false expenses to obtain refunds from the government. The Income Tax Department has uncovered that many individuals have falsely claimed donations to registered but unrecognised political parties to save taxes.
During the department's investigation, it was found that several of these political parties do not file returns and have no existence at the addresses listed. Many of these parties issue receipts to individuals in the name of tax savings. The department is now scrutinising these parties, and taxpayers who have claimed donations to them are being urged to file revised returns.
According to a report by Jagran.com, the department is also investigating tax evasion under the guise of Corporate Social Responsibility (CSR) by companies. Claims made under sections 80GGC and 80G of the Income Tax Act are currently under scrutiny. In its efforts to detect fraudulent claims, the department has been utilising Artificial Intelligence (AI) and data analytics to examine ITRs more efficiently.
The department has noted that a significant number of revised ITRs have already been filed for the assessment year 2025-26. For the time being, they are requesting taxpayers to voluntarily file revised ITRs in a cooperative manner. However, if these revisions are not made, further action will be taken.
The department has also urged all taxpayers to ensure that their correct mobile numbers and email addresses are provided in their ITRs to facilitate the receipt of relevant information. As of now, Income Tax alerts are no longer being sent via post. In November, the department had issued alerts to over 25,000 taxpayers who had failed to disclose foreign assets, urging them to file revised ITRs.
Accurate disclosure of foreign assets and income is mandatory under the Income Tax Act, 1961, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which prescribe strict penalties for non-compliance.