🚨 CBDT Income Tax Scrutiny Guidelines: Are You at Risk in 2025?
The Central Board of Direct Taxes (CBDT) has released its latest scrutiny guidelines for FY 2024–25 (AY 2025–26), and if you’ve filed your ITR recently, your return could be under the scanner.
💣 Survey? Search? Exemption Claimed? Large Past Additions?
👉 You could be selected for compulsory scrutiny.
Let’s break down the new CBDT scrutiny parameters, understand who will be affected, and what steps you must take right now to avoid penalties or legal stress.
🧾 What is CBDT Income Tax Scrutiny?
Income Tax Scrutiny is when the tax department reviews and verifies your return in detail to ensure there is no misreporting or evasion. The notice comes under:
- 📩 Section 143(2) – Scrutiny after return processing
- 🔍 Section 148 – Reassessment based on new information
If you fall under certain high-risk categories, your ITR will be automatically selected.
🧨 CBDT Income Tax Scrutiny Guidelines 2025: Compulsory Cases You MUST Know
CBDT’s official guidelines mandate six compulsory scrutiny categories for AY 2025–26.
🔹 1. Survey Cases (Code: CS01)
If a survey under Section 133A (excluding 2A) was conducted on/after 1st April 2023, and you filed a return—your case will be compulsorily scrutinized.
🔹 2. Search & Seizure / Requisition Cases (CS02, CS03)
If there was a search under Section 132 or 132A, your case is automatically transferred to the Central Circle.
- CS02: Search conducted between Apr 1, 2023 – Aug 31, 2024
- CS03: Search conducted between Sep 1, 2024 – Mar 31, 2025
📌 Notice must be issued before June 30, 2025
🔹 3. Cancelled Exemption/Deduction Claimed (CS04)
If you claimed Section 12A, 12AB, 10(23C), or Section 35 exemptions in ITR-7 after your registration was cancelled before 31 March 2024, your return will be flagged.
📉 NGOs, Charitable Trusts, Educational Institutions—take note.
🔹 4. Recurring Additions in Past Assessments (CS05)
If your previous assessments (final or upheld) had additions of over ₹50 lakh in metros or ₹20 lakh in non-metros, and you claimed similar expenses/deductions again—expect scrutiny.
⚠️ Repeated red flags = automatic scrutiny.
🔹 5. Specific Information Received from Authorities (CS06)
If intelligence or info is received from regulatory or law enforcement bodies (SEBI, ED, CBI, GST), CBDT will initiate compulsory scrutiny for that year.
📆 Deadline Alert: CBDT Income Tax Scrutiny Notices by June 30, 2025
If you’re under these categories, the Assessing Officer or Directorate of Systems must issue a notice under Section 143(2) before June 30, 2025.
🔄 Assessment Process: NaFAC or Central Transfer?
| Type of Case | Assessment Mode |
|---|---|
| Search/Survey Cases | Transferred to Central Circle |
| Regular Scrutiny | Done via NaFAC (Faceless Assessment Centre) |
| International or Specialized Cases | Handled directly by designated offices |
🔗 NaFAC = contactless, paperless, faceless scrutiny process
🚫 What’s NOT Covered in Compulsory CBDT Income Tax Scrutiny?
Returns filed in response to:
- TDS mismatch
- AIS or SFT alerts
- Auto-generated notices
…are not covered under compulsory scrutiny, and may be picked under CASS (Computer Assisted Scrutiny Selection) instead.
🧠 Real-Life Example: Don’t Ignore These Triggers
- Ravi’s NGO claimed exemption under Section 12A, even though it was revoked in Jan 2024 → Scrutiny under CS04
- Priya’s ITR showed similar bogus purchases as in her 2022 case (₹60 lakh) → CS05 scrutiny triggered
- Ramesh’s factory was surveyed in Dec 2023 → CS01 scrutiny for AY 2025–26 is compulsory
🛡️ How to Stay Safe: 5 Must-Do Tips
✅ 1. Review Your ITR Thoroughly
Ensure all details, deductions, and disclosures are correct. Don’t hide anything.
✅ 2. Prepare Documentation
If you fall under any scrutiny category, get your supporting documents ready now—notices can come anytime.
✅ 3. Respond Quickly
If you receive a 143(2) or 148 notice, don’t delay. Respond within the given deadline with full details.
✅ 4. Hire a CA or Tax Expert
Professional help is strongly recommended for handling scrutiny. Don’t self-represent unless you’re confident.
✅ 5. Maintain Transparency
Whether you run a business, NGO, or are salaried—don’t try to “manage” returns. CBDT systems are AI-powered now.
📌 Summary Table – CBDT Income Tax Scrutiny Guidelines 2025
| Code | Category | Trigger Event | Action |
|---|---|---|---|
| CS01 | Survey Cases | 133A post Apr 1, 2023 | Scrutiny |
| CS02 | Search (Apr–Aug 2024) | Section 132 | Scrutiny |
| CS03 | Search (Sep 2024–Mar 2025) | Section 132 | Scrutiny |
| CS04 | Cancelled Exemption Claimed | ITR-7 | Scrutiny |
| CS05 | Recurring Past Additions | Over ₹50L/₹20L | Scrutiny |
| CS06 | Info from Authorities | SEBI, GST, etc. | Scrutiny |
📣 Final Thoughts: Don’t Take CBDT Income Tax Scrutiny Lightly in 2025
The Income Tax Department is now smarter, faster, and stricter.
If you’re involved in high-risk transactions, have faced survey/search, or claimed risky deductions, you must stay alert.
🔒 Protect your finances. Be audit-ready.
Start documenting everything, and take help from professionals to stay ahead.