Filing your income tax return (ITR) on time does not necessarily mean you are safe from scrutiny. The Central Board of Direct Taxes (CBDT) has issued fresh guidelines for FY2026-27, identifying six categories of taxpayers whose returns will be compulsorily selected for complete scrutiny.

In a circular (F.No.225/56/2026/ITA-II), the tax department outlined six "Scenario Codes" (CS01 to CS06) under which cases will automatically come under detailed examination by assessing officers.

Here's a look at the categories that could trigger mandatory scrutiny.

1. Survey cases

Taxpayers whose premises have been surveyed under Section 133A of the Income Tax Act on or after April 1, 2024, will face compulsory scrutiny.

However, surveys conducted under Section 133A(2A), which are typically limited to verifying tax deducted at source (TDS) compliance, are excluded from this provision.

2. Search and seizure cases

Cases involving searches under Section 132 or requisitions under Section 132A initiated on or after April 1, 2024, will also be selected for scrutiny.

For searches conducted on or after September 1, 2024, the scrutiny will apply to assessment years covered under Section 158BA(6).

Search and seizure actions generally involve cases where authorities suspect undisclosed income or assets.

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3. Reassessment proceedings

Taxpayers who have received notices under Section 148, which deals with reassessment of income escaping assessment, will continue to remain under the tax department's focus.

Such cases will automatically qualify for complete scrutiny during FY27.

4. Trusts and instituitions

The CBDT has also targeted trusts and institutions that continue claiming tax exemptions despite cancellation or withdrawal of approvals.

This applies to entities whose registrations or approvals under Sections 12A, 12AB, 10(23C) or Section 35 have been cancelled but which continue to claim exemptions or deductions in ITR-7.

5. Recurring tax disputes

Taxpayers involved in recurring disputes that resulted in substantial additions in earlier years may also be scrutinised.

The threshold for such additions is:

₹50 lakh or more in metro cities including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Pune and Ahmedabad.
₹20 lakh or more in non-metro jurisdictions.

The trigger applies when such additions have become final or have been upheld in favour of the Income Tax Department by appellate authorities.

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6. Tax evasion inputs

Even taxpayers with a clean compliance record may face scrutiny if law enforcement or intelligence agencies provide specific information indicating possible tax evasion for a particular assessment year.

Under Scenario Code CS06, such information can lead to compulsory selection for detailed scrutiny.

Why accuracy matters

The latest guidelines highlight the growing use of data analytics and inter-agency information sharing by the tax department.

Experts say taxpayers should focus on accurate reporting of income from all sources, maintain proper documentation for deductions and exemptions, and ensure that disclosures in their ITR match their financial records.

Correct reporting of high-value transactions and consistency across bank accounts, investments and tax filings can help avoid unnecessary complications.

While scrutiny does not automatically imply wrongdoing, it can result in detailed examination of financial records and prolonged correspondence with tax authorities.

As the Income Tax Department increasingly relies on technology and data-driven checks, filing an ITR is no longer just about meeting the deadline. Maintaining transparency and ensuring consistency in financial disclosures have become equally important for taxpayers seeking to stay off the scrutiny radar.

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Published on: Jun 15, 2026 9:20 AM IST