CBDT Notifies Fresh Guidelines for Compulsory Scrutiny of Income Tax Returns for FY 2025-26

The Central Board of Direct Taxes (CBDT) has notified fresh guidelines for the compulsory manual scrutiny of Income Tax Returns (ITRs) for the fiscal year 2025-26. These guidelines outline the specific parameters based on which tax returns will be selected for a detailed examination by assessing officers. The criteria for selection typically include cases involving specific claims of large deductions, international transactions, or information received from other government agencies like the GST department or law enforcement. The aim is to deter tax evasion and identify high-risk cases that require a more in-depth review. The CBDT's annual issuance of these guidelines ensures transparency in the selection process, informing taxpayers and practitioners about the areas of focus for the tax department. The selection will be done through the National Faceless Assessment Centre (NaFAC), continuing the push towards a more objective, technology-driven assessment process.