CBDT Sets June 30, 2026, Deadline for ITR Scrutiny Notices Under Section 143(2)

The Central Board of Direct Taxes (CBDT) has outlined key rules for income tax return (ITR) scrutiny for FY 2025–26. June 30, 2026, has been identified as the final date for issuing scrutiny notices under Section 143(2).

This deadline applies only to the Income Tax Department and not to taxpayers. The clarification provides greater transparency on timelines for assessment and verification.

June 30, 2026, ITR Scrutiny Deadline Explained

June 30, 2026, is the last date for the Income Tax Department to issue scrutiny notices for returns filed during FY 2025–26. If no notice is issued by this date, the return is generally not selected for detailed examination under Section 143(2).

This deadline applies solely to tax authorities and does not require any action from taxpayers. The defined timeline helps establish clarity on when scrutiny proceedings can be initiated.

What Happens During Income Tax Scrutiny Process?

Income tax scrutiny involves a detailed review of a filed tax return by authorities. Officials verify the accuracy of income declared, deductions claimed, exemptions reported, and other financial disclosures.

This process ensures compliance with applicable tax laws and identifies mismatches or inconsistencies. Importantly, scrutiny selection does not automatically indicate any wrongdoing and is often part of routine verification.

CBDT Rules for Selecting Returns for Scrutiny

The CBDT has specified that scrutiny selection is based on defined risk parameters rather than random selection. Returns may be picked for compulsory scrutiny under scenarios such as:

• Cases involving search, seizure, or survey operations
• Reassessment linked to previously undisclosed income
• Inputs from regulatory or enforcement agencies
• Recurring issues where major tax additions were observed in past assessments

These criteria ensure that scrutiny remains targeted and focused on higher-risk cases.

Which Taxpayers Are More Likely to Face Scrutiny?

Certain categories of taxpayers are more likely to be reviewed under scrutiny guidelines. Entities such as trusts or institutions claiming exemptions despite cancellation or denial of registration may be selected.

Returns flagged due to significant discrepancies, abnormal financial patterns, or intelligence inputs are also prioritised. Additionally, cases with repetitive adjustments in earlier assessments may fall under closer monitoring.

Read More: ITR Filing Guide for Freelancers and Influencers in FY26.

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Conclusion

The CBDT’s clarification on the June 30, 2026, deadline provides a structured framework for ITR scrutiny timelines. It defines the window within which tax authorities can initiate detailed examinations of returns.

The guidelines also emphasise a data-driven approach to selecting cases for scrutiny. Overall, the framework enhances transparency and ensures systematic enforcement of compliance measures.

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