New Delhi, Aug. 5 -- The Income Tax Department's technology-driven NUDGE campaign has led to 1.25 crore taxpayers voluntarily revising or updating their income tax returns over the past two financial years, resulting in an additional Rs.9,494 crore in tax collections, according to the government.

Replying to a question in the Lok Sabha on Monday, Minister of State for Finance Pankaj Chaudhary said the campaign has helped improve voluntary tax compliance by encouraging taxpayers to correct errors in their returns before enforcement action becomes necessary.

The initiative, launched by the Central Board of Direct Taxes (CBDT), uses data analytics, behavioural insights and digital communication to identify taxpayers whose returns may conta...