Introduction
The Complete Scrutiny Guidelines for FY 2025-26, recently released by the CBDT, set clear procedures for selecting income tax returns for detailed examination. Understanding these guidelines is crucial for taxpayers, consultants, and businesses to avoid unnecessary disputes and ensure timely compliance.
What are Complete Scrutiny Guidelines?
Complete scrutiny is a thorough examination of an income tax return. The Complete Scrutiny Guidelines explain which returns must be compulsorily scrutinised and how Assessing Officers (AOs) should handle them.
Key Highlights of CBDT’s 2025-26 Guidelines
The CBDT, via Instruction No. 02/2025 dated 14th June 2025, outlines the following mandatory scrutiny scenarios:
- Cases involving information from law enforcement agencies
Returns flagged by CBI, ED, or other agencies must undergo complete scrutiny. - Specific Survey cases (Section 133A)
Returns filed after a survey operation showing income below the returned income of preceding years. - Search and Seizure cases (Section 132/132A)
- Cases flagged under risk management
Cases with high-risk financial transactions as per risk management systems. - Reopened assessments (Section 147)
Procedure for Compulsory Selection
Once a case falls under the Complete Scrutiny Guidelines, the following steps apply:
| Step | Action by AO |
|---|---|
| 1 | Issue notice under Section 143(2) |
| 2 | Conduct hearing via Faceless Assessment or jurisdictional AO |
| 3 | Call for supporting documents/evidence |
| 4 | Pass speaking order within prescribed time |
Note: The CBDT directs that such cases must not be dropped without proper approval from the Principal Commissioner of Income Tax (PCIT).
Expert View: Practical Tip
Pro Tip:
Always reconcile reported income with high-value transactions (like property sales, stock trades) to avoid automatic selection under the Complete Scrutiny Guidelines.
Latest Legal Reference
👉 CBDT Instruction No. 02/2025, issued under F.No. 225/75/2023/ITA-II dated 14.06.2025.
👉 Refer to Income-tax Act, 1961 Sections 132, 133A, 143(2), and 147.
FAQs on Complete Scrutiny Guidelines
Q1: Can I avoid compulsory scrutiny?
No. If your case matches the specified conditions, it will be selected. Proper filing helps avoid further issues.
Q2: Will scrutiny happen physically or online?
Most cases follow Faceless Assessment rules, unless directed otherwise.
Q3: What if I disagree with the AO’s order?
You can appeal before the CIT(A) and, if needed, the ITAT.
Key Takeaway
Staying informed about the Complete Scrutiny Guidelines helps avoid compliance errors and surprises from the tax department.
✅ Stay updated with Efiletax for more insights.
👉 Read our latest blogs on Income Tax Notices.
Summary
CBDT’s Complete Scrutiny Guidelines for FY 2025-26 list conditions for mandatory selection of income tax returns for detailed examination. Taxpayers must know the procedure and prepare documents in advance to handle scrutiny effectively. Stay compliant and updated with Efiletax.