CBDT Issues Guidelines for Compulsory Selection of ITRs for Complete Scrutiny in FY 2026-27

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has issued guidelines for the compulsory selection of returns for complete scrutiny during the Financial Year 2026-27 (Assessment Year 2027-28) under the Income Tax Act, 1961.

The CBDT has released these guidelines in pursuance of its powers granted under Section 536(2)(c) of the Income Tax Act, 2025. As per these guidelines, the case that will be chosen for complete scrutiny will be selected based on certain parameters.

The following are some of those parameters:

1. Cases related to the survey under Section 536(2)(c) of the Income Tax Act, 2025: Cases under this parameter will be selected for complete scrutiny by the Directorate of Income Tax (Systems) after taking permission from the DGIT (Systems), Delhi. Scrutiny of these cases will be based on the information of survey cases provided by the Commissioner (OSD) (Investigation), CBDT. Notices for these cases will be issued under Section 143(2) of the Income Tax Act, 1961, and will be sent to the concerned taxpayer through the prescribed Income Tax Authority or the concerned Assessing Officer (AO).

The Pr. CCsIT/ Pr. DGSIT/ DGSIT(Inv.)/ CCsIT(Central) have been instructed to create a unified list of cases falling under this parameter within the bounds of their governing power and provide it to the Commissioner (OSD) (Investigation). The list has been directed to be created in the format mentioned by the Commissioner (OSD) (Investigation), CBDT.

If there are any cases that fall outside the Central Charges, in such a scenario, the concerned Pr. CIT/Pr. DIT/CIT/DIT is required to make cases that are transferred to the Central Charge. This transfer must be done within 15 days from the date of serving notice under section 143(2) of the Income-tax Act, 1961, to the taxpayer.

2. Cases related to search started or requisition made: Cases in which search operations have been initiated under Section 132 of the Income Tax Act, 1961, or requisitions have been made under Section 132A of the said Income Tax Act, 1961, on or after April 01, 2024,

In cases where searches have been initiated, or requisitions have been made on, or after September 01, 2024, the ITR should be selected for completed scrutiny for the related assessment year, which is covered by the provisions of Section 158BA (6) of the said Act.

In these scenarios, cases should be selected for complete scrutiny by the concerned Assessing Officer (AO) after taking prior approval from the concerned Pr. CIT/Pr. DIT/CIT/DIT.

The cases falling outside the Central Charge should be transferred to the Central Charge by the concerned Pr. CIT/Pr. DIT/CIT/DIT. This transfer should be made within 15 days of sending notice under section 143(2) of the Income Tax Act, 1961, to the concerned taxpayer.

Refer to the official PDF of guidelines for complete information.