New Income Tax Scrutiny Rules for FY 2025-26 || Is Your ITR at Risk?

If you are planning to file your Income Tax Return (ITR) for FY 2024-25 then you must know the latest rules and guidelines.

The Central Board of Direct Taxes (CBDT) has issued fresh guidelines for compulsory selection of ITRs for complete scrutiny. In simple terms, they have outlined which types of returns will automatically be picked for a detailed check by the Income Tax Department.

Let’s break it down in simple way so you know whether your return may get selected for scrutiny and how you can stay prepared.

What is Scrutiny in Income Tax?

A scrutiny is when the Income Tax Department selects your return for deeper investigation. They may ask for additional documents, explanations, and proof for the claims you made in your return.

There are two types:

• Complete Scrutiny (compulsory) : high – risk or flagged returns
• Limited Scrutiny : only specific points are examined

The new guidelines are about complete scrutiny cases for FY 2025-26.

Who Will Be Compulsorily Selected for Scrutiny in FY 2025-26?

Here is the list the cases that will be automatically picked for complete scrutiny:

1. Survey-Based Cases (Section 133A)

If a survey was conducted on your business premises on or after 1st April 2023, your ITR for FY 2024-25 will be scrutinised.

Even if everything is clean, the return goes through detailed checks.

2. Search & Seizure Cases (Sections 132 & 132A)

If a search or requisition was carried out between April 1, 2023 and March 31, 2025, and your return is connected to it, be ready your return will be under scrutiny.

3. ITR-7 Filers Claiming Exemption

If you are filing ITR-7 and claiming tax exemption under Sections 12A, 12AB, or 10(23C):

• And your registration is missing, cancelled, or withdrawn as on 31st March 2024
• Your return will face scrutiny unless your registration was restored on appeal

4. Recurring Additions in Past Assessments

If you have had recurring additions (especially on issues of law or fact) in previous assessments, and:

• The amount was more than Rs. 50 lakh in metro cities (Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune)
• Or more than Rs. 20 lakh elsewhere

And those additions have been upheld in appeal, In this case your return is automatically selected for scrutiny.

5. Tax Evasion Alerts from Other Agencies

If your name comes up in any intelligence report shared by law enforcement or regulatory agencies (like ED, SFIO, GST Dept.), and there is a red flag for possible tax evasion, in this case your ITR will be picked for full scrutiny.

Timeline for Scrutiny Notices

If your ITR for FY 2024-25 is going to be scrutinised, the department must issue a Section 143(2) notice by 30th June 2026 i.e within 3 months from the end of the financial year in which the return was filed.

After that date, scrutiny notices cannot be issued for returns filed in this financial year.

Summary: Is Your Return Safe?

Here is a quick checklist to see if your return might be selected:

Taxtrix Tip

• If any of the above applies to you, don’t panic but don’t ignore it either.
  File your return properly
  Keep documentation ready
  Consult a tax expert to safeguard yourself during scrutiny

At Taxtrix, we help individuals, startups, and businesses file clean, compliant, and scrutiny-ready ITRs with expert support in case any notice comes your way.

Need Help with ITR or Scrutiny Notice?
Let Taxtrix be your tax partner so you can stay stress-free, no matter what changes the CBDT brings! 🌐 www.taxtrix.in
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