The Central Board of Direct Taxes (CBDT) has shelved an important compliance shift i.e. compulsory due diligence of ITR Filing in FY 2025-26. This step is not normal. It represents a straight turn to improved transparency, increased audit levels and better enforcement. This is the wake call to every casual Income Tax Return Filing habit.
Why This CBDT Update Is Critical to Your ITR Filing Strategy for FY 2025–26
In its circular dated 12th June 2025, the Central Board of Direct Taxes (CBDT) has made it explicitly clear — certain categories of ITRs will now undergo mandatory scrutiny, with no exceptions, regardless of income bracket or risk level.
Categories Now Subject to Compulsory Scrutiny:
1. Search & Survey Cases
- ITRs filed after income tax search (u/s 132) or requisition (u/s 132A).
- Applies where incriminating material was found and disclosed during the search.
2. Reassessment Returns
- Returns filed in response to notices under Sections 148 or 148A will automatically face scrutiny.
3. Information Mismatch Cases
- Any discrepancies between Income Tax Return Filing and details in Form 26AS, AIS, or TIS.
- Even minor mismatches may result in a formal inquiry.
4. CASS-Based Selection
- System-generated profiling under CASS remains active.
- Now includes manual verification for flagged cases, increasing audit exposure.
What This Means for ITR Filing in FY 2025–26
This isn’t a policy tweak — it’s a strategic shift from self-reported filings to evidence-backed compliance. The old approach of “file and forget” is no longer viable.
For Individual Taxpayers:
- Cross-verify all data with Form 26AS, AIS, and TIS before filing.
- Do not rely on assumptions — only report what can be substantiated.
- Stay audit-ready, even with income under ₹10 lakh.
For Businesses & Corporates:
- Be prepared for documentation-heavy ITR Filing.
- Align internal records across departments (Accounts, Finance, Compliance).
- Engage tax advisors early before responding to scrutiny notices.
In FY 2025–26, accuracy is the new benchmark in ITR Filing. With CBDT’s revised framework, compliance is no longer a checkbox — it’s a strategic risk area.
Key Takeaways: Filing ITR under The New Normal
Compulsory examination spells no tolerance, when your case falls into the criteria, then it is under the radar. Mismatch of data in even the slightest of ways can incur formal proceedings. The process of scrutiny is no longer risk-averse, and it marks even the compliant taxpayers. During FY 2025-26, effective ITR Filing will not be fast, but accurate.
Bitter End: ITR filling has become a risk area of compliance, treat it as one!
The notice of CBDT does not Only mean enforcement but it is a sign. It warns the taxpayers: Put your house in order, when it comes to ITR Filing or expect hard questions. ITR Filing is not another yearly exercise in FY, 2025-26; it is a regulated point.
Filing your return on your own? It’s time to reconsider. Still relying on outdated methods? That’s a risk you can’t afford. And if you’re treating scrutiny as a distant possibility — think again. The audit window is no longer far off. It’s closer than you think.
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