ITR 2025: When Your Return Will Be Compulsorily Scrutinized:

ITR 2025: When Your Return Will Be Compulsorily Scrutinized

The Central Board of Direct Taxes (CBDT) has released new instructions, where it has mentioned certain situations that can result in a mandatory investigation of your ITR. These guidelines were issued on June 14, 2025. The tax officials will do a complete scrutiny to ensure a detailed analysis of the ITR. The complete scrutiny will cover all the details of the ITR filed, including income, deductions, exemptions and investments. Let us understand the situations under which a mandatory investigation will be carried out.

Also Read

Compulsory Income Tax Scrutiny Guidelines for Financial Year 2025-26

Survey cases (CS01)

Search and seizure cases (CS02 and CS03)

If the authorities have carried out a raid or have seized the document of the taxpayer at his place (between April 1, 2023 and March 31, 2025) under section 132 or 132A, then ITR in such a situation will be mandatory scrutiny.

Recurring Additions (CS05)

In cases where additions of more than Rs 50 lakh (metro cities) or Rs 20 lakh (other places) have been made in the first assessment, and it has not been appealed or has survived in appeal. All such cases must go through mandatory scrutiny.

Claiming exemption Even After cancellation of registration (CS04)

If an institution or trust registered under Section 12A, 12AB, 10(23C), or 35(1)(ii)/(iii) has cancelled its registration till March 31, 2024 and still has claimed exemption, then in such cases, investigation will be mandatory.

Information Received from law enforcement agencies (CS06):

If a taxpayer gets caught in a tax evasion case based on concrete information from agencies like the CBI, ED, etc., and has filed their Income Tax Return (ITR), then that case will automatically be chosen for scrutiny.

Cases With No Mandatory Investigation

If a taxpayer files their ITR after getting a notice under section 142(1), and the information came from sources like AIS, TDS-CPC, or the SFT system, then this rule will not apply to them. These cases will be handled through CASS (Computer Assisted Scrutiny Selection). Also, if limited third-party information is found during a search, it will not be sent to the central circle unless a senior tax officer specifically instructs it.

Can You Avoid Scrutiny Notice?

If these conditions are applicable, a scrutiny notice will be issued by June 30, 2025. A case cannot be excluded from mandatory investigation without the approval of the Principal CIT (PCIT). The NaFAC process will not be applicable in cases of International Taxation and Central Circles.

Therefore, if you receive a scrutiny notice under section 143(2) under these conditions, then you cannot escape from such a notice. Keep all your required documents prepared to avoid further penalties.