Why Was My ITR Picked for Scrutiny? CBDT FY 2026-27 Rules

Your income-tax return was picked for complete scrutiny in FY 2026-27 only if it falls into one of six fixed categories set by the CBDT, such as a survey, a search, a Section 148 reassessment, or specific tax-evasion information. If your case is not in any of these six buckets, you can only be picked through the random computer-based CASS selection. The deadline to serve the notice in these compulsory cases is 30 June 2026.

Short on time? Jump to the six-category checklist below and check whether your case matches even one entry.

Every year the Central Board of Direct Taxes (CBDT) issues guidelines that list the exact situations where a return must be examined in full, called complete scrutiny. This removes officer discretion for the riskiest cases.

The current order is the “Guidelines for Compulsory Selection of Returns for Complete Scrutiny during FY 2026-27”, F.No. 225/56/2026/ITA-II, dated 4 June 2026. It was issued under Section 536(2)© of the Income-tax Act, 2025. That Act (Act 30 of 2025), as amended by the Finance Act 2026, is the new law that replaced the Income-tax Act 1961.

The guidelines apply to returns filed during FY 2025-26. If your return is in scope, the notice that begins the scrutiny, served under the proviso to Section 143(2), must reach you on or before 30 June 2026.

According to the CBDT guidelines (F.No. 225/56/2026/ITA-II dated 4 June 2026), a return is picked for compulsory complete scrutiny if it falls in any one of these six categories.

1. Survey cases. A survey under Section 133A (other than Section 133A(2A)) was conducted on or after 1 April 2024.
2. Search and seizure cases. A search under Section 132, or a requisition under Section 132A, was initiated on or after 1 April 2024.
3. Reassessment cases. A notice under Section 148 (reassessment of income that escaped assessment) has been issued.
4. Trusts and institutions that lost registration. The registration or approval (for example 12A, 12AB or 10(23C)) was cancelled, withdrawn or denied, yet the trust still claims exemption or deduction.
5. Recurring large additions upheld for the department. There were substantial recurring additions in earlier years that attained finality or were upheld in favour of the department. The threshold is reported as additions exceeding ₹50 lakh in metro charges and ₹20 lakh in non-metro charges.
6. Specific tax-evasion information. Specific information pointing to tax evasion was received from a law-enforcement, intelligence or regulatory agency, or from the investigation wing.

Use this simple flow to know what to expect.

1. If yes (your case matches even one category): expect a notice under the proviso to Section 143(2) on or before 30 June 2026. After that, the case moves to complete scrutiny.
2. If no (your case matches none): you cannot be picked under these compulsory rules. You can still be selected through the random, computer-based CASS (Computer Assisted Scrutiny Selection) process.

There is one important carve-out. A return filed in response to a Section 142(1) notice that was based only on AIS, SFT or TDS information will not be automatically picked for compulsory scrutiny. The single exception is if the case also falls under the tax-evasion-information category above.

Readers often confuse three different things. They are not the same.

If your notice says complete scrutiny and your case fits one of the six buckets, you are in the compulsory track. If it is a limited scrutiny notice, the officer can examine only the specific points raised, unless the case is later converted with approval.

A notice is not a penalty. It is a request to verify your return with proof. Work through these steps.

Confirm the notice is under Section 143(2) and that it was served on or before 30 June 2026 for FY 2026-27 compulsory cases. A notice served after the deadline may be challenged. Note the document identification number and the response due date.

Complete scrutiny runs through the faceless assessment system. Log in to the income-tax e-filing portal, open the e-Proceedings tab, read the questionnaire, and file your reply with attachments before the due date. Do not ignore the notice.

Gather bank statements, books, invoices, capital-gains computations, exemption certificates and any other records that support the figures in your return. Upload clean, legible copies. The burden is on you to substantiate your claims.

If you cannot reply by the due date, request an adjournment through the portal before the deadline, with a short reason. Apply early. Do not assume an extension; wait for it to be granted.

If a faceless notice or order looks wrong, see our guide on how to respond to a faceless assessment notice under Section 144B. For a smaller automated adjustment, the steps differ; read how to reply to a Section 143(1)(a) proposed adjustment.

No. Selection means your return is being verified in full, often because of a fixed rule like a past survey or search, not because evasion is proved. Many scrutiny cases close with no addition once you supply proof. Treat the notice as a request to substantiate your figures, and respond on time through the portal.

Not automatically. According to the CBDT guidelines (F.No. 225/56/2026/ITA-II dated 4 June 2026), a return filed in response to a Section 142(1) notice based solely on AIS, SFT or TDS information is not picked for compulsory scrutiny, unless the case also falls under the tax-evasion-information category.

For FY 2026-27 compulsory-scrutiny cases, the notice under the proviso to Section 143(2) must be served on or before 30 June 2026. If you receive such a notice after that date for these cases, note the date carefully, because timing of service is a recognised ground to question a Section 143(2) notice.

Complete scrutiny examines the whole return. Limited scrutiny looks only at specific computer-flagged issues, such as a single mismatch, unless the case is converted to complete scrutiny with approval. The six CBDT categories drive compulsory complete scrutiny. Other cases reach scrutiny through random CASS selection and may be either complete or limited.

Yes, but only if the assessment results in an addition that attracts a penalty, and only after a separate penalty notice and hearing. Penalty is not automatic. If you receive one, see our guide on how to reply to a faceless penalty notice under Section 270A.

• Re-read your notice and confirm it is under Section 143(2) and was served on or before 30 June 2026.
• Check your case against the six categories above to understand why you were picked.
• Log in to the income-tax e-filing portal and open the e-Proceedings tab to see the questionnaire and due date.
• Start a folder of supporting documents for every figure in your return.
• If you need help drafting a related information request, try the AI RTI draft tool.

For the wider framework on using information rights with public authorities, see The RTI Playbook.

• CBDT, “Guidelines for Compulsory Selection of Returns for Complete Scrutiny during FY 2026-27”, F.No. 225/56/2026/ITA-II, dated 4 June 2026, issued under Section 536(2)© of the Income-tax Act, 2025.
• The Income-tax Act, 2025 (Act 30 of 2025), as amended by the Finance Act 2026, available on incometaxindia.gov.in.

• How to respond to a faceless assessment notice under Section 144B
• How to reply to a Section 143(1)(a) proposed adjustment
• How to reply to a faceless penalty notice under Section 270A

Last reviewed: 28 June 2026.