New Delhi, June 11 -- The Central Board of Direct Taxes (CBDT) has issued guidelines for the compulsory selection of income tax returns for complete scrutiny during FY 2026-27. The board has identified six categories of cases that will be automatically picked for detailed examination by the Income Tax Department.

Under compulsory scrutiny, a taxpayer's return is selected for a detailed assessment based on specific criteria prescribed by the tax department. Unlike risk-based scrutiny, which relies on data analytics and red flags, these cases are automatically selected when they fall within the categories notified by the CBDT.

Compulsory scrutiny is a process under Section 143(2) of the Income-tax Act, 1961, under which certain returns ar...