CBDT Income Tax Scrutiny Guidelines for FY 2025-26: Key Rules & PDF Download
The Central Board of Direct Taxes has released the guidelines for choosing the returns that should be compulsorily scrutinised. For specific search, survey and requisition cases, cancellation or rejection of registration of charitable trusts, scientific research institutions, and organizations eligible for accepting donations under section 80G, specific information available from law enforcement agencies could be grounds for conducting compulsory scrutiny.
This article explains in detail the meaning of compulsory scrutiny, the consequences and the grounds for the same.
What is Compulsory Scrutiny?
- The Central Board of Direct Taxes decides the basis on which returns filed would be mandatorily selected for scrutiny.
- It also prescribes the manner in which the scrutiny needs to be undertaken.
- In this kind of scrutiny, a thorough examination happens on all the particulars of the return filed during the year.
Procedure for Scrutiny
- Department issues notice u/s 143(2), requiring the assessee to submit required information and records.
- The assessee submits the information, mostly through online mode.
- Assessment is carried out usually under faceless assessment scheme.
- Assessment order is passed within the time prescribed under the act.
Cases for which Compulsory Scrutiny would be undertaken FY 2025-26
The cases which would be selected for compulsory scrutiny for FY 2025-26 are presented in the below table.
| S No | Compulsory Scrutiny Cases | Notice Issued and Other Points |
| 1 | Survey conducted under section 133A on or after 01-04-2023 | Notice for scrutiny assessment u/s 143(2) will be sent |
| 2 | Search cases u/s 132 and requisition u/s 132A (from 01-04-2023 to 31-08-2024) | Notice u/s 143(2) or 142(1) |
| 3 | Search cases u/s 132 and requisition u/s 132A conducted from 01-09-2024 - should pertain only to assessment year 2025-26 for conducting compulsory scrutiny. | |
| 4 |
| Notice for scrutiny assessment u/s 143(2) will be sent |
| 5 | Addition in taxable income of the assessee made regarding the same repeating issues that were previously dealt in assessment proceedings. | Notice for scrutiny assessment u/s 143(2) will be sent |
| 6 |
| Notice for scrutiny assessment u/s 143(2) will be sent |
Time Limit for Compulsory Scrutiny Notice under section 143(2)
Scrutiny notice for cases selected for ITRs filed in the FY 2024-25, should be sent on or before 30th June, 2025.
Final Word
It is important to reconcile the income reported in the returns and the volume of transactions undertaken by the assessee on filing return. If the income reported is disproportionately small as compared to the volume of the transactions undertaken, there is a high probability of receiving notices from the department, leading to unwanted hassle and adverse consequences.
Download official guidelines for compulsory scrutiny FY 2025-26
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About the Author
Chandni Anandan
I’m a Chartered Accountant with a deep interest in Direct Tax Laws, drawn to the fascinating blend of numbers and legal provisions. Right from my preparation days, I had specific attraction on areas where tax provisions are often difficult to interpret, aiming to simplify and make them easily understandable.I stay updated by connecting with other professionals and closely following industry news and media.My approach to writing is straightforward and comprehensive, ensuring that even complex topics are accessible to a wide audience.. Read more
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