ITR Scrutiny 2026-27: CBDT's 6 Compulsory Criteria
CBDT circular F.No. 225/56/2026/ITA-II (4 June 2026) lists six categories of income tax returns filed in FY 2025-26 that will be compulsorily selected for complete scrutiny in FY 2026-27. Notices u/s 143(2) must be served by 30 June 2026. If you are a salaried filer whose income is fully reflected in TDS, Form 16, and AIS, you are not in any of the six categories. Receiving an AIS mismatch notice does not put you in compulsory scrutiny. CASS — the algorithmic random-selection process — is a separate framework and is not what this circular governs.
What the Circular Is
The circular was issued under Section 536(2)(c) of the Income-tax Act, 2025 — the new codification that replaced the Income-tax Act 1961. However, the scrutiny triggers themselves use the familiar section numbers from the 1961 Act: survey under Section 133A, search under Section 132, requisition under Section 132A, reassessment under Section 148. These section numbers have not changed; only the authorising provision cites the new Act.
The circular covers returns filed during FY 2025-26. Internal deadlines have already passed: consolidated lists for CS-05 and CS-06 categories were required to reach the Directorate of Income-tax (Systems) by 15 June 2026. The final external deadline — service of notice u/s 143(2) on the taxpayer — is 30 June 2026.
The 6 Compulsory Scrutiny Categories
| Code | Category | What Triggers It | Salaried Filer Risk |
|---|---|---|---|
| CS-01 | Survey under Section 133A | A survey (other than 133A(2A)) was conducted at the assessee's premises on or after 01 Apr 2024 | Nil, unless a survey was conducted at your employer's premises and your return is within that sweep |
| CS-02 | Search or Requisition | Search u/s 132 or requisition u/s 132A initiated on or after 01 Apr 2024. For searches on/after 01 Sep 2024, the return selected is for the AY covered under Section 158BA(6) | Nil for standard salaried employees; applies to business/high-net-worth individuals post-raid |
| CS-03 | Reassessment u/s 148 | A notice under Section 148 has been issued — either (i) for post-01.04.2021 search/survey cases, or (ii) for other cases where assessment is to be completed by 31 Mar 2027 | Applies only if you have already received a Section 148 notice. If not, irrelevant. |
| CS-04 | Cancelled/denied registration | Registration/approval under Section 12A, 12AB, 35(1), 10(23C)(iv)/(v)/(vi)/(via) was not granted or was cancelled/withdrawn on or before 31 Mar 2025, yet the assessee claimed exemption/deduction in ITR-7 | Nil — applies to trusts, institutions, and research bodies, not individual salaried filers |
| CS-05 | Recurring additions — settled or upheld | Earlier-year additions on a recurring issue of law or fact, exceeding Rs 50 lakh in the 8 metro charges (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune) or Rs 20 lakh elsewhere, that have become final or been upheld by appellate authority in Revenue's favour | Nil for salaried filers; applies to assessees with ongoing tax disputes where additions have been sustained |
| CS-06 | Specific tax-evasion information | Specific information pointing to tax evasion for the relevant AY has been provided by a law-enforcement agency, Investigation Wing, Intelligence unit, or Regulatory Authority — and the assessee has filed a return for that AY | Near-zero for regular salaried filers; requires a specific actionable input from an enforcement body |
CASS vs Compulsory Scrutiny — Not the Same Process
This distinction matters more than the individual categories. The circular makes it explicit: a return filed in response to a Section 142(1) notice that was triggered solely by NMS, AIS, SFT, or CPC-TDS data will not be selected for compulsory scrutiny — unless it independently falls under CS-06 (specific tax-evasion information from a law-enforcement body).
Compulsory Scrutiny (this circular)
Applies to the 6 specific categories above. Complete examination of the return. Selected by AO or DIT(Systems) with administrative approval. Notice u/s 143(2) by 30 Jun 2026.
CASS (separate process)
Computer Assisted Scrutiny Selection — risk-based algorithmic sampling. May select any return. Typically results in limited (specific-issue) scrutiny, not complete scrutiny. Governed by separate CASS guidelines, not this circular.
What a Salaried Filer Should Actually Do
Every ITR filing season generates the same anxiety spike: "will I get a notice?" The honest answer from this circular is that the compulsory scrutiny net is narrow and deliberate. It targets taxpayers with post-survey, post-search, and post-148-notice histories, entities with cancelled exemptions still claiming deductions, assessees with large sustained additions, and those flagged by enforcement intelligence. None of those apply to a salaried employee whose employer has deducted TDS correctly, whose AIS matches Form 16, and who has no prior tax disputes.
What salaried filers should actually do: file the return correctly. Reconcile your Form 16, 26AS, and AIS before filing — discrepancies between these are what feed the CASS pool, not this circular. If you received an e-campaign significant-transactions notice last quarter, that is an AIS/SFT-triggered process — respond to it, reconcile the figure in your ITR, and it does not independently push you into compulsory scrutiny. Consult a CA if you have a pending Section 148 notice, a prior-year addition that is under appeal, or any doubt about your specific situation.
For the full ITR filing walkthrough — ITR-1 vs ITR-2, AIS reconciliation, Schedule CG, and the advance-tax calculation — see the AY 2026-27 salaried filing guide. If you received a Section 87A demand notice because of STCG, see the Section 87A explainer — including the ITAT Ahmedabad ruling on back-year contestability.
The 6 compulsory scrutiny categories target survey-hit, search-hit, reassessment, cancelled-registration, recurring-addition, and enforcement-flagged cases. A clean salaried return with TDS-settled income is in none of them. File correctly, reconcile your AIS, and ignore the noise. Notices must arrive by 30 June 2026.
Frequently Asked Questions
What is CBDT compulsory scrutiny and who does it apply to?
Compulsory scrutiny is the mandatory selection of certain returns for complete examination by the Income Tax Department. For FY2026-27, CBDT circular F.No. 225/56/2026/ITA-II (4 June 2026) specifies 6 categories covering post-survey, post-search, reassessment, cancelled-registration, recurring-addition, and tax-evasion-info cases — not ordinary salaried returns with TDS-settled income.
Will my ITR be scrutinised just because I received an AIS mismatch notice?
No. The circular explicitly states that a return filed in response to a Section 142(1) notice based solely on AIS, NMS, SFT, or CPC-TDS information will not be selected for compulsory scrutiny — unless it independently falls under CS-06 (specific tax-evasion information provided by a law-enforcement agency).
What is the difference between compulsory scrutiny and CASS scrutiny?
Compulsory scrutiny applies to the 6 specific categories in this CBDT circular and involves complete examination of the return. CASS (Computer Assisted Scrutiny Selection) is a separate algorithmic process that may select any return — typically for limited scrutiny on specific issues. Being outside the 6 compulsory categories does not automatically protect you from CASS.
By when will CBDT serve scrutiny notices for FY 2025-26 returns?
30 June 2026. 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, notices under Section 143(2) for returns filed in FY 2025-26 must be served by this date.
I am a salaried employee with TDS deducted and Form 16. Can I get a compulsory scrutiny notice?
Only if you independently fall into one of the 6 categories — for example, if a survey was conducted at your employer's premises and your return is included in that survey sweep, or if a reassessment notice under Section 148 was issued against you. A clean salaried return with TDS-settled income, no prior surveys, no pending reassessments, and no regulatory-authority flags does not trigger any of the 6 compulsory categories.
- CBDT Circular F.No. 225/56/2026/ITA-II, 4 June 2026 — Guidelines for Compulsory Selection of Returns for Complete Scrutiny FY 2026-27 | incometaxindia.gov.in/circulars (search "scrutiny 2026-27")
- Section 143(2) and Section 536(2)(c), Income-tax Act 1961 / Income-tax Act 2025
- Secondary verification: onlinetaxupdate.com (circular table reproduced verbatim, 7 Jun 2026); TaxScan (9 Jun 2026)
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