The CBDT circular dated 4 June 2026 (F.No. 225/56/2026/ITA-II) lays out six scenario codes, CS 01 to CS 06, under which returns for FY 2025-26 must go to compulsory complete scrutiny. Many taxpayers who get an income tax return scrutiny notice think it is just because of a small mismatch in their data but the circular actually names specific situations.
The Pr. CCITs had to forward their lists of such cases to the Directorate of Income-tax (Systems) by 15 June 2026. As per a report, the Section 143(2) notices for these returns were to be served by 30 June 2026, so individuals who have received such notices are now going through the codes to understand which one applies to them.
What puts a return on the compulsory list
- CS 01: a survey under Section 133A (other than Section 133A(2A)) conducted on or after 1 April 2024.
- Searches under Section 132 or requisitions under Section 132A between 1 April 2024 and 31 March 2026.
- Recurring additions that are final or upheld by the appellate authorities, above Rs 50 lakh in eight metro jurisdictions and above Rs 20 lakh elsewhere.
- Section 148 reassessment cases that are not search or survey cases, which are passed to NaFAC for completion by 31 March 2027.
- CS 06: specific evidence of tax evasion given by a law enforcement, intelligence, regulatory or investigation agency, where the assessee has filed a return.
What does not force scrutiny
According to a report by A2Z Taxcorp LLP, a return filed after receiving a Section 142(1) notice, where the notice was issued solely on data from AIS, SFT, NMS or TDS, does not have to be compulsorily examined. The only exception to this rule is a case that falls under CS 06.
People with a limited scrutiny notice are in a different position. The officer can only look at the points raised in that notice unless later the case is changed to full scrutiny with approval.
However, notices for earlier years may reflect older rules. The guidelines dated 13 June 2025 had made search and requisition cases from 1 April 2023 to 31 March 2025 compulsory and the primary circular text is the document to be checked.
