Since yesterday many chartered accountants and taxpayers are saying that taxpayers, including individuals, have been getting nudge emails from the income tax department about advance tax. The nudge email mentions that the Income Tax Department has reason to believe that the taxpayer’s advance tax payment doesn’t match up with their financial activities.
Additionally, the same email from the income tax department also highlights some of the ‘significant transactions’ undertaken by the taxpayer during the year. However, CAs and taxpayers point out that the email has erroneously highlighted certain ‘significant transactions’ that were not undertaken by the said taxpayers who got this email or were not relevant for the said taxpayer.
Update 3.14PM: After many taxpayers and chartered accountants complained of error in advance tax e-campaign nudge, the Income Tax Department has issued a clarification on 2.57 PM on X.
The Income Tax Department said that it has been reported that certain taxpayers have received emails containing inaccurate details regarding ‘significant transactions’ undertaken by them as part of the ongoing Advance Tax e-Campaign for AY 2026-27 (Financial Year 2025-26).
The Income Tax Department said that they would like to thank taxpayers for bringing this error to their attention and regrets the inconvenience caused.
Income Tax Department said: “We are actively working to resolve this matter in coordination with our service provider. In the meantime, taxpayers are requested to kindly ignore the earlier email communication related to the Advance Tax e-Campaign for AY 2026-27 (Financial Year 2025-26). The Department would like to clarify that these communications are intended purely as facilitative reminders to enable taxpayers to review relevant financial information available on the Compliance Portal and, where applicable, ensure appropriate advance tax compliance.”
The Income Tax Department also said that taxpayers are advised to verify their transaction details through the e-Campaign tab on the Compliance Portal, accessible via the e-Filing portal.
What was the original Income Tax Department communication?
Chartered Accountant Ashish Niraj, Partner, A S N & Company shared the message which his client received from the Income Tax Department with ET Wealth Online:
“The Income Tax Department has received certain information on financial transactions relating to PAN XXXXX1234X for Financial Year 2025-26 (AY 2026-27). It is seen that your advance tax payment for F.Y. 2025-26 is apparently not commensurate with such financial transactions undertaken by you during this period. As part of taxpayer service initiative, this e-campaign aims to intimate you of some of the ‘significant transactions’ undertaken during F.Y. 2025-26.”
Niraj says that yesterday (13th February) many of his clients got a mail from “ITD_SUPPORT@insight.gov.in” regarding Advance Tax (AT) e-campaign- based on significant transactions for AY 2026-27.
What was the error in the original Income Tax Department communication?
Both Chartered Accountant Avinash Kumar Rao, Partner at Mohindra & Associates and Niraj say that the tax department has sent the same amounts of receipts, turnover & purchases mistakenly.
Rao says: “While the initiative reflects a data-driven compliance approach, issuing such alerts earlier in the quarter would make them far more effective and less disruptive for taxpayers.”
According to Niraj, the figures mentioned in the advance tax e-campaign nudge was common for many of his clients, who obviously panicked and started calling his office regarding the same.
Niraj says: “Some complained that their sales is inflated in mail, some called and said they don’t have GST, some who had GST, asked us to check their GST Returns whether any wrong filing was done by mistake. Some panicked thinking someone may have forged their documents to take GST in their name.”
Niraj says that when they checked the taxpayers’ AIS and 26AS, then no such significant transactions, as mentioned, were found, which he confirmed to his clients telling them not to worry as their particulars are correct in AIS.
Niraj says: “We also told them that it seems like a glitch from the tax department as the same figures are there in most mails.”
Rao, says that his clients also were recently sent advance tax e-campaign emails highlighting “significant transactions” such as GST turnover, purchases and receipts.
Chartered Accountant Abhas Halakhandi shared on X: “Income-Tax bulk mails/messages are back!! Current blunder: EXACT SAME figures have been sent to all taxpayer recipients. Incorrect unrelated figures in official communication only create confusion and panic!! Advance Tax reminders are welcome, but treating routine transactions, including purchases and sales, as “significant transactions” seems unnecessary. A friendly reminder works better than notice-like communication.”
What to do?
According to Rao, this advance tax nudge e-campaign is not a statutory notice but a friendly reminder for advance tax payment since the deadline to deposit the last quarterly advance tax payment is March 15, 2026.
Rao says: “Taxpayers should understand that this is not a statutory notice instead just a reminder for advance tax payment and does not automatically mean advance tax is payable.
These figures are largely PAN- or GSTN-based transaction data and do not reflect profitability, which is the key factor for determining advance tax liability.
According to Rao, if a taxpayer does not have taxable profits or already has sufficient TDS credits or previous year losses, there may be no advance tax payable at all, and the information can be reviewed and responded to later on the compliance portal.
Rao says: “However, several taxpayers, including many of our clients, received these emails only on the evening of 13 March, leaving barely any time before the 15 March advance tax deadline, which has created unnecessary anxiety.”
Source: The Economic Times
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