SynopsisThe CBDT has released new guidelines for compulsory income tax return scrutiny in FY 2026-27, impacting returns filed in FY 2025-26. Specific risk parameters will mandate detailed examination by the I-T Department. A June 30, 2026 deadline is set for issuing scrutiny notices under Section 143(2).ET OnlineThese ITR filers can face compulsory scrutinyThe Central Board of Direct Taxes (CBDT) has issued fresh guidelines for the compulsory selection of income tax returns for complete scrutiny during the financial year 2026-27, as reported by Taxguru. The guidelines will apply to returns filed during FY 2025-26 and lay down the parameters and procedures for selecting cases for detailed examination by the Income Tax (I-T) Department.According to a circular issued by the CBDT, certain categories of taxpayers will be mandatorily picked up for complete scrutiny based on specific risk parameters identified by the I-T Department. Here are the parameters for compulsory selection of ITRs for complete scrutiny during Financial Year 2026-27:CodeParametersProceduresCS 01: ITRs of taxpayers surveyed under Section 133A to face mandatory scrutinyCases pertaining to survey u/s 133A of the Income-tax Act, 1961. Cases where survey u/s 133A (other than survey u/s 133A(2A)) has been conducted on or after 01.04.2024.Cases shall be selected for compulsory scrutiny by the Directorate of Income-tax (Systems) with approval of DGIT(Systems), Delhi, based on information provided by Commissioner (OSD)(Investigation), CBDT. Notice u/s 143(2) shall be served through the prescribed income-tax authority or Assessing Officer. Pr. CCsIT/Pr. DGsIT/DGsIT(Inv.)/CCsIT(Central) shall provide consolidated lists of such cases.CS 02: Search and requisition cases selected for compulsory scrutinyCases pertaining to search initiated or requisition made. Cases where search u/s 132 or requisition u/s 132A has been initiated/made on or after 01.04.2024. For searches/requisitions on or after 01.09.2024, returns covered by Section 158BA(6) are included.Cases shall be selected for compulsory scrutiny by the Assessing Officer concerned with prior administrative approval of Pr. CIT/Pr. DIT/CIT/DIT concerned. If the case lies outside Central Charges, it should be transferred within 15 days of service of notice u/s 143(2).CS 03(i): Cases where notice under Section 148 was issued after search or survey actionCases where notice u/s 148 has been issued – Search & seizure action initiated on or after 01.04.2021 but before 01.09.2024, or survey action conducted on or after 01.04.2021.Jurisdictional Assessing Officer (JAO) shall serve notice u/s 143(2) where return has been furnished. If cases fall outside Central Charges, transfer to Central Charges as per Board guidelines. JAO shall upload underlying documents on the basis of which notice u/s 148 was issued.CS 03(ii): Non-search reassessment cases with Section 148 notice to undergo scrutinyOther than search & seizure/survey cases where notice u/s 148 has been issued and assessment is to be completed on or before 31.03.2027.Directorate of Income-tax (Systems) shall forward cases to NaFAC for further action. Notice u/s 143(2) shall be served through NaFAC where return has been furnished. JAO shall upload underlying documents supporting issue of notice u/s 148.CS 04: Trusts and institutions denied or losing tax-exempt status under scannerCases related to registration/approval under various sections such as Sections 12A, 12AB, 35(1)(ii)/(iia)/(iii), 10(23C)(iv)/(v)/(vi)/(via), etc. where: (i) registration/approval was not granted or was cancelled/withdrawn on or before 31.03.2025; and (ii) the assessee claimed exemption/deduction in ITR-7. Cases where withdrawal/cancellation orders have been reversed or set aside in appeal are excluded.Cases shall be selected for compulsory scrutiny by Directorate of Income-tax (Systems) with approval of DGIT(Systems), Delhi, based on returns filed in FY 2025-26. Notice u/s 143(2) shall be served through NaFAC or prescribed authority. JAOs shall upload relevant documents containing specific information regarding the parameter.CS 05: Cases involving large additions in earlier assessment years to be scrutinisedCases involving additions in earlier assessment years on recurring issues of law or fact. Addition exceeds ₹50 lakh in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, or ₹20 lakh in other charges; and such addition has become final (no further appeal) or has been upheld by appellate authorities in favour of Revenue.JAOs shall prepare a list of such cases and obtain administrative approval of Pr. CIT/Pr. DIT/CIT/DIT concerned. Consolidated list shall be submitted to Pr. CCIT concerned, who shall forward it to Directorate of Income-tax (Systems) by 15.06.2026. Notice u/s 143(2) shall be served through NaFAC.CS 06: Cases related to specific information regarding tax evasionCases related to specific information regarding tax evasion. Cases where: (a) specific information indicating tax evasion for the relevant assessment year is provided by law-enforcement agencies, Investigation Wing, Intelligence agencies, Regulatory authorities, etc.; and (b) return for the relevant assessment year has been furnished by the assessee. Clarification: Returns filed in response to notice u/s 142(1) linked only to AIS/SFT/CPC-TDS information will not be selected for compulsory scrutiny unless they fall under CS 06.Same procedure as CS 05. JAOs prepare list, obtain approval, consolidated list sent to Directorate of Income-tax (Systems) by 15.06.2026. Notice u/s 143(2) served through NaFAC. Relevant supporting information/documents must be uploaded immediately.Time LimitFor income tax returns filed in FY 2025-26, the deadline for the Income Tax Department to issue a scrutiny notice under Section 143(2) is June 30, 2026.International transactionsFor international taxation and central charges, cases selected under these parameters will continue to be handled by those charges and not by National Faceless Assessment Centre (NaFAC). ...more