Why June 30 is important
As per the CBDT instruction, the Income Tax Department must serve a scrutiny notice under Section 143(2) within the statutory time limit applicable to the assessment cycle. For returns filed in FY 2025-26, this effectively sets June 30 as the last date for issuing scrutiny notices under the current cycle.
In simple terms, this is a cut-off date for initiating detailed examination of tax returns, not a compliance deadline for taxpayers.
After this date, returns that have not been picked up for scrutiny under the applicable cycle are generally considered outside the scope of compulsory scrutiny selection for that assessment window.
What happens before the deadline
Until June 30, the tax department can:
- Select returns for complete scrutiny under defined risk parameters
- Issue notices under Section 143(2)
- Initiate detailed verification of income, deductions, exemptions, and disclosures
This selection is not random. The CBDT has defined categories such as survey cases, search and seizure cases, reassessment-linked returns, and cases flagged by enforcement or regulatory agencies.
What taxpayers should know
The deadline does not require any action from taxpayers. However, it is relevant because:
- It marks the final window for scrutiny initiation for FY26 returns
- It helps define the timeline for assessment risk in a given filing year
- It indicates when tax records for a year may still be examined in detail
Tax experts note that scrutiny notices do not imply wrongdoing. They are primarily used to verify information or seek clarification on specific claims in a return.
