The Income Tax Department does not randomly select all returns for detailed checks. The CBDT provides yearly guidelines for compulsory scrutiny. These guidelines focus on specific high-risk cases for thorough examination. This helps address major compliance issues.

What triggers compulsory scrutiny for FY 2025-26 (AY 2026-27)?

While we are still waiting for official guidelines, past trends suggest common triggers include:

  • Cases from search, seizure, or survey operations.
  • Specific, credible information about  tax evasion from other agencies.
  • Certain large refund claims, often those above a specific threshold.
  • Information related to FEMA violations or international transactions.
  • Instances where the Assessing Officer has  specific, credible information, requiring higher approval.

For reference, you can often find such guidelines published by tax portals. For example, similar guidelines for FY 2025-26 might be available here: Compulsory Scrutiny Guidelines for FY 2025-26.

If your return is chosen, you will receive a notice under Section 143(2). This notice usually indicates 'complete scrutiny', which means a full review of your finances. Most assessments are now conducted electronically and without face-to-face interaction.