The Central Board of Direct Taxes (CBDT), Ministry of Finance, Government of India has issued Guidelines vide F. No. 225/56/2026/ITA-II dated June 04, 2026 for compulsory selection of income tax returns filed during the Financial Year 2025-26 for complete scrutiny during the Financial Year 2026-27. These guidelines have been issued in pursuance of Section 536(2)(c) of the Income-tax Act, 2025 and prescribe the parameters as well as the procedure for compulsory selection of returns for complete scrutiny.
CS 01 — Cases Pertaining to Survey under Section 133A of the Income-tax Act, 1961: Cases of assessees in whose case a survey under Section 133A [other than Section 133A(2A)] has been conducted on or after 01.04.2024 shall be compulsorily selected for scrutiny. Such selection shall be made by the Directorate of Income-tax (Systems) with the approval of DGIT (Systems), Delhi, on the basis of information provided by the Commissioner (OSD)(Investigation), CBDT. Notice under Section 143(2) shall be served on the assessee through the Prescribed Income-tax Authority or the Assessing Officer concerned. Cases lying outside Central Charges shall be transferred to the Central Charge within 15 days of service of notice under Section 143(2).
CS 02 — Cases Pertaining to Search Initiated or Requisition Made under Sections 132/132A of the Income-tax Act, 1961: Cases of assessees in whose case a search under Section 132 or a requisition under Section 132A has been initiated on or after 01.04.2024 shall be compulsorily selected for scrutiny by the Assessing Officer with prior administrative approval of Pr. CIT/Pr. DIT/CIT/DIT. For searches initiated or requisitions made on or after 01.09.2024, the return shall be selected for the assessment year covered by Section 158BA(6) of the Income-tax Act, 1961. Cases lying outside Central Charges shall be transferred within 15 days of service of notice under Section 143(2).
CS 03 — Cases where Notice under Section 148 of the Income-tax Act, 1961 has been Issued: This parameter covers two sub-categories:
[i] Cases wherein search and seizure action has been initiated on or after 01.04.2021 but before 01.09.2024, or survey action conducted on or after 01.04.2021: The Jurisdictional Assessing Officer (JAO) shall serve notice under Section 143(2) and shall upload the underlying documents on the basis of which notice under Section 148 was issued. Transfer to central charges, if applicable, shall be governed by Board’s guidelines under F.No. 299/107/2013-IT(Inv.III)/1568 dated 25.04.2014.
[ii] Cases other than search and seizure/survey, where notice under Section 148 has been issued and which are to be completed on or before 31.03.2027: The Directorate of Income-tax (Systems) shall forward these cases to the National Faceless Assessment Centre (NaFAC), which shall serve notice under Section 143(2). The JAO shall upload underlying documents on the basis of which notice under Section 148 was issued.
CS 04 — Cases Related to Registration/Approval under Various Sections such as 12A, 12AB, 35(1)(ii)/(iia)/(iii), 10(23C)(iv)/(v)/(vi)/(via), etc.: Cases where registration/approval under these sections has (i) not been granted or has been cancelled/withdrawn by the Competent Authority on or before 31.03.2025, and (ii) the assessee has been found claiming tax-exemption/deduction in the return filed in ITR-7, shall be compulsorily selected for scrutiny by the Directorate of Income-tax (Systems) with approval of DGIT (Systems), Delhi. Cases where orders of withdrawal have been reversed/set aside in appellate proceedings shall not be selected under this parameter. Notice under Section 143(2) shall be served through NaFAC or the prescribed income-tax authority.
CS 05 — Cases Involving Addition in an Earlier Assessment Year on a Recurring Issue of Law or Fact: Cases where the addition on a recurring issue of law or fact (including transfer pricing) in an earlier assessment year exceeds Rs. 50 Lakh in eight metro charges (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune) or Rs. 20 Lakh in other charges — and where such addition has either become final or has been upheld by Appellate Authorities in favour of Revenue — shall be compulsorily selected for scrutiny. The Jurisdictional Assessing Officers shall prepare lists of such cases for administrative approval. The consolidated list shall be submitted by Pr. CIT/Pr. DIT/CIT/DIT to the Pr. CCIT concerned, who shall forward the same to the Directorate of Income-tax (Systems) latest by 15.06.2026.
CS 06 — Cases Related to Specific Information Regarding Tax Evasion: Cases in respect of which (a) specific information pointing out tax evasion for the relevant assessment year is provided by any law-enforcement agency, Investigation Wing, Intelligence, Regulatory Authority or Agency, and (b) the return for the relevant assessment year has been furnished by the assessee, shall be compulsorily selected for scrutiny. It is clarified that returns filed in response to notice under Section 142(1) in connection with information contained in NMS Cycle/AIS/Statement of Financial Transactions (SFT)/CPC-TDS information/information received from the Directorate of I&CI shall not be taken up for compulsory scrutiny unless falling under Parameter CS 06. Notice under Section 143(2) shall be served through NaFAC.
Special Provisions for International Taxation and Central Charges: Cases may be selected for compulsory scrutiny by International Taxation and Central Charges following the parameters prescribed at Para 2 above, with prior administrative approval of Pr. CIT/Pr. DIT/CIT/DIT concerned. Such selected cases shall continue to be handled by International Taxation and Central Circle charges respectively. It is further clarified that communication to NaFAC for access and/or further action after selection for compulsory scrutiny shall not apply to International Taxation and Central Charges.
Time Limit for Service of Notice under Section 143(2): As per the proviso to Section 143(2) of the Income-tax Act, 1961 read with Section 536(2)(c) of the Income-tax Act, 2025, the time limit for service of notice under Section 143(2) for ITRs filed in the Financial Year 2025-26 is 30.06.2026. All Assessing Officers are directed to ensure strict compliance within the prescribed time limit.
These instructions shall be brought to the notice of all concerned for necessary compliance.
The Guidelines can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/06/Guidelines-for-Compulsory-Selection-of-returns-for-Complete-Scrutiny-during-the-Financial-Year-2026-27.pdf
