Income Tax Return Filing 2026: As the income tax filing season for the financial year 2025-26 (assessment year 2026-27) is underway, the tax department has issued new guidelines for tax scrutiny for cases of this tax year. These guidelines chalk down parameters and procedures for selecting cases for detailed scrutiny by the income tax department.
The guidelines mandate complete scrutiny for specific taxpayer categories flagged by the Income Tax Department’s risk assessment framework.
Who Can Be Selected for Mandatory Income Tax Scrutiny in FY 2026-27?
According to the CBDT’s latest guidelines, the following taxpayers may be automatically selected for detailed scrutiny by the Income Tax Department:
1. Taxpayers Surveyed by the Income Tax Department
Returns of individuals or businesses that were subject to a tax survey
under Section 133A on or after April 1, 2024, can be picked for compulsory scrutiny.
2. Taxpayers Subjected to Search or Raid
If the Income Tax Department conducted a search, raid, or requisition action against a taxpayer on or after April 1, 2024, their returns may be selected for detailed examination.
3. Cases Reopened by the Tax Department
Returns may be scrutinized if the department has issued a reassessment notice under Section 148 for suspected income escaping assessment.
4. Charitable Trusts and Institutions Losing Tax Benefits
Entities whose tax-exempt registration or approval has been cancelled, withdrawn, or denied, but which continue to claim tax exemptions or deductions in their returns, may face compulsory scrutiny.
5. Taxpayers With Large Additions in Earlier Assessments
Returns can be selected if a taxpayer faced significant tax additions in previous years on a recurring issue and those additions have been upheld or become final.
Above Rs 50 lakh in metro cities such as Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Pune and Ahmedabad.
Above Rs 20 lakh in other locations.
6. Cases Flagged for Suspected Tax Evasion
Taxpayers may be picked for scrutiny if law enforcement agencies, investigation wings, intelligence units, or regulatory bodies provide specific information suggesting tax evasion.
Who Is Unlikely to Be Picked Under These Rules?
The CBDT has clarified that returns filed in response to routine notices linked to data mismatches in AIS, SFT, TDS records, or other information systems will not automatically be selected for compulsory scrutiny unless they fall under the specific risk categories listed above.
/images/imfZ6nBC-image-178088853565746568.webp)
/images/ppid_59c68470-image-17808125254439577.webp)
