Income tax scrutiny: Who could receive a tax notice by June 30 and what to do if you've made a mistake
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Income tax scrutiny deadline: Why June 30, 2026 matters for taxpayers
The Income Tax Department can issue scrutiny notices for ITRs filed during FY 2025-26 only within a prescribed time limit. For such returns, June 30, 2026, is the last date for serving a notice under Section 143(2). If no notice is issued by then, the return generally cannot be selected for scrutiny under this provision.
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Section 143(2) scrutiny notice: What does it mean?
A scrutiny notice does not automatically mean tax evasion or wrongdoing. It simply means the Income Tax Department wants to verify specific claims, transactions, deductions, or income reported in your return. Taxpayers should carefully review the notice and be prepared to provide supporting documents and explanations when requested.
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Which taxpayers are more likely to receive scrutiny notices?
According to CBDT guidelines, certain cases may be selected for compulsory scrutiny. These include taxpayers with significant additions in earlier assessment years on recurring issues and cases where tax authorities receive credible information indicating possible tax evasion. Such returns may be reviewed more closely before the June 30 deadline.
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CS05 cases: Taxpayers with large additions in previous assessments
One category identified by the CBDT involves taxpayers whose earlier assessments resulted in substantial income additions that have attained finality or were upheld in favour of the tax department. In metro jurisdictions, such additions generally exceed ₹50 lakh, while in other jurisdictions the threshold is ₹20 lakh.
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CS06 cases: Specific information suggesting possible tax evasion
Returns may also be selected for scrutiny when law enforcement agencies, investigation wings, intelligence units, or regulatory bodies provide information indicating possible tax evasion. These cases fall under the CS06 category and are among the priority cases identified by the CBDT for potential scrutiny action.
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Found an error in your ITR? You may still have options
If you discover an omission, reporting mismatch, or incorrect claim in your return, don't assume a scrutiny notice is inevitable. Tax laws provide mechanisms such as filing an Updated Return (ITR-U), subject to conditions and additional tax costs. Acting proactively is often viewed more favourably than waiting for departmental action.
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What documents should taxpayers review before a scrutiny notice?
Experts advise reviewing Form 26AS, AIS, TIS, bank statements, capital gains records, and other supporting documents. Reconciling these records with the income reported in the return can help identify discrepancies early and strengthen your position if questions are raised by the tax department later.
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Already received a scrutiny notice? Here's what you should do
If you believe your return is correct, respond with complete supporting documents and explanations within the prescribed timelines. If you later discover an error, assess the tax impact and provide accurate disclosures during scrutiny proceedings. Timely and transparent responses generally help avoid unnecessary complications.
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How to reduce the risk of tax disputes and scrutiny problems
Good record-keeping is one of the best ways to handle scrutiny proceedings. Maintain documents supporting deductions, exemptions, capital gains, income disclosures, and financial transactions. Even when a scrutiny notice is issued, taxpayers with proper records and clear explanations are usually better placed to resolve issues smoothly and efficiently.