CBDT's 6 Compulsory Scrutiny Triggers for FY 2026-27: Which Small-Business ITRs Get a 143(2) Notice
CBDT issued its compulsory-scrutiny guidelines for FY 2026-27 on 4 June 2026, listing six parameters (CS-01 to CS-06) that decide which FY 2025-26 returns face complete scrutiny. Selection is not random, and the Section 143(2) notice deadline is 30 June 2026. Here is what realistically affects an SMB.
- CBDT prescribed six parameters (CS-01 to CS-06) on 4 June 2026 under F.No. 225/56/2026/ITA-II for complete scrutiny of FY 2025-26 returns (Taxguru, 2026).
- Selection is not random — a return is picked only if it falls under a specific parameter; AIS/SFT-based returns are not auto-scrutinised unless they hit CS-06.
- The recurring-addition trigger (CS-05) starts above ₹50 lakh in the eight metro charges or ₹20 lakh elsewhere; the Section 143(2) notice deadline is 30 June 2026.
CBDT issued its compulsory-scrutiny guidelines for FY 2026-27 on 4 June 2026 under F.No. 225/56/2026/ITA-II, listing exactly which returns filed in FY 2025-26 get picked for complete scrutiny — the first such list under the new Income Tax Act, 2025 (Taxguru, 2026). The good news for most small businesses: scrutiny selection is not random, and a normally-filed return rarely qualifies.
This guide translates the six parameters into plain English, flags which realistically touch an SMB, and explains the 30 June 2026 notice deadline so you know when you are in the clear.
What did CBDT announce for compulsory scrutiny in FY 2026-27?
CBDT laid down the exact conditions under which returns already filed will be taken up for complete scrutiny during FY 2026-27, along with the internal deadlines for tax officers to compile case lists (CAclubindia, 2026). Consolidated CS-05 and CS-06 lists had to reach the Directorate of Income-tax (Systems) by 15 June 2026 through the prescribed hierarchy.
The point of publishing this every year is transparency: it tells taxpayers the objective triggers, so an ordinary return that avoids them is not exposed to discretionary picking.
What are the six scrutiny parameters (CS-01 to CS-06) in plain English?
CS-01 covers survey cases under Section 133A; CS-02 covers search and requisition under Sections 132/132A; CS-03 covers reassessment under Section 148; CS-04 covers cancelled 12A/12AB/10(23C) registrations still claiming exemption; CS-05 covers large recurring additions; and CS-06 covers specific tax-evasion information from enforcement agencies (A2Z Taxcorp, 2026).
Which of these triggers realistically affect a small business?
For a typical SMB, CS-01 to CS-03 only apply if you were already surveyed, searched, or reopened — events you would know about. CS-04 hits trusts and NGOs with cancelled registrations. That leaves CS-05 (very large recurring additions) and CS-06 (specific evasion intelligence) as the practical ones — and both need something already unusual in your history to fire.
If you have had a past addition upheld on appeal, or you have received enforcement-agency attention, get professional help early. Our income-tax notice handling team drafts responses and represents you through the assessment.
What is the Section 143(2) deadline and why does it matter?
For returns filed during FY 2025-26, the department must serve the Section 143(2) notice — the one that formally opens scrutiny — by 30 June 2026 (Taxguru, 2026). If that date passes without a notice landing in your registered email and the e-filing portal, your return cannot be taken up for complete scrutiny for that year. It is a hard cut-off worth diarising.
How does the raised ₹50 lakh / ₹20 lakh recurring-addition threshold change things?
CS-05 fires when an earlier confirmed or upheld addition on a recurring question of law or fact exceeds ₹50 lakh in the eight metro charges (Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune) or ₹20 lakh elsewhere; the metro limit was doubled from ₹25 lakh in June 2025 (Taxguru, 2026). The higher floor keeps mid-sized recurring disputes out of automatic scrutiny.
What is NOT picked for compulsory scrutiny?
Returns filed in response to Section 142(1) notices linked purely to AIS, SFT, or CPC-TDS data are not taken up for compulsory scrutiny unless they also fall under CS-06. So an AIS-mismatch nudge, on its own, does not put you in the complete-scrutiny bucket. Reconcile it, respond, and move on.
How should an SMB prepare if it receives a 143(2) notice?
Read which parameter is cited, gather the specific records that support the flagged item, and respond within the timeline through the faceless portal. Do not ignore it — a non-response invites a best-judgement assessment. Keeping clean, reconciled books through the year with bookkeeping support turns a scrutiny notice from a scramble into a document-retrieval exercise. For filing itself, our business ITR filing service keeps the return defensible from the start.
What to verify before acting on CBDT's 6 Compulsory Scrutiny Triggers for FY 2026-27
Rules and platform behaviour change after an article is published. Confirm forms, due dates, AIS or Form 26AS data, regime rules, and filing instructions against the Income Tax Portal before you act on anything below, because the right answer depends on your entity, state, turnover, and current setup.
Going deeper: Income Tax Notice Handling, Business ITR Filing, and Bookkeeping Services.
Frequently asked questions
What are the six compulsory-scrutiny parameters for FY 2026-27?
They are CS-01 survey cases under Section 133A, CS-02 search or requisition under 132/132A, CS-03 reassessment under Section 148, CS-04 cancelled 12A/12AB/10(23C) registrations still claiming exemption, CS-05 large recurring additions, and CS-06 specific tax-evasion information from enforcement agencies. A return is taken up only if it falls under one of these.
Will filing my ITR normally trigger scrutiny?
No. Selection is not random. Returns are picked only if they fall under one of the six parameters. Returns filed in response to Section 142(1) notices linked purely to AIS, SFT, or CPC-TDS data are not taken up for compulsory scrutiny unless they also meet parameter CS-06. An ordinary, reconciled return is not exposed.
What is the deadline for the tax department to send a scrutiny notice?
For returns filed during FY 2025-26, the Section 143(2) notice must be served by 30 June 2026. Consolidated CS-05 and CS-06 case lists had to reach the Directorate of Income-tax (Systems) by 15 June 2026 through the prescribed hierarchy. If that date passes with no notice, your return cannot be taken up for complete scrutiny.
How much does a recurring addition have to be to trigger CS-05?
A confirmed or upheld recurring addition on a question of law or fact must exceed ₹50 lakh in the eight metro charges (Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune) or ₹20 lakh in other charges. The metro limit was doubled from ₹25 lakh in June 2025, keeping mid-sized disputes out of automatic scrutiny.
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