NUDGE campaign generates ₹16,083 crore in additional tax revenue over four years

Over 1.32 crore updated tax returns filed during the past four years generated ₹16,083 crore in additional tax payments under the Income Tax Department's NUDGE campaign, a senior tax official disclosed.

Pallavi Agarwal, member of the Central Board of Direct Taxes, shared the figures while highlighting the impact of recent tax reforms at a conference organized by the Bangalore Chamber of Industry and Commerce as part of its Golden Jubilee celebrations in Bengaluru. The event focused on the New Income Tax Act, 2025, and Rules, examining transitional challenges.

Shift toward new tax regime

The new tax regime has seen significant adoption among filers. For Assessment Year 2026-27, more than 97% of ITR-1 and over 95% of ITR-2 returns were filed under the new regime.

The Department added 49 lakh first-time filers by July 31, 2026. Technology-led administration has improved processing efficiency, with 2.54 crore returns, 32.48% of those furnished up to August 31, 2026, processed within one day of filing, while refunds were issued for around 65 lakh returns.

Outreach and simplification goals

The Income Tax Department has conducted 304 outreach programmes since April 2026 across the country in English, Hindi, and regional languages to familiarize taxpayers, professionals, and stakeholders with the Income Tax Act, 2025, Income Tax Rules, 2026, and the redesigned tax forms, according to Agarwal.

"Tax law becomes genuinely simple when the taxpayer can understand what the law requires, the professional can advise with confidence, and the administration can apply it consistently," she said. The Income Tax Act, 2025, sought to deliver this through a streamlined and modern tax framework that reduces the compliance burden, brings greater clarity and certainty, and makes tax administration more citizen-centric and technology-driven, she added.

The Department currently interfaces with approximately 8 crore taxpayers and collects nearly 600 crore transaction details through mechanisms including TDS, Statement of Financial Transactions, and the Annual Information Statement.

Vidisha Kalra, Principal Chief Commissioner, Income Tax, Karnataka and Goa region, said a fair, predictable and transparent tax system was the foundation of a confident business community. "The new tax framework was aimed at combining continuity and certainty in policy with greater simplicity and clarity," she said.

Source: The Hindu