The 32-year-old, who last played for Australia at the 2011 World Cup, has shown impressive form in the country's domestic T20 'Big Bash' tournament.
"Shaun Tait returns on the basis that he is the quickest bowler going around in Australia at the moment and he offers us that explosive option if we choose to use it," selector Rod Marsh said in a statement on Monday.
All-rounder Shane Watson was snubbed for the ongoing one-day series against India but has been named in the T20 squad for the matches in Adelaide (Jan. 26), Melbourne (Jan. 29) and Sydney (Jan. 31).
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The matches form Australia's last auditions for the World T20 in India, which starts in March, and off-spinner Nathan Lyon has also been given a chance to push his case.
Lyon, long overlooked for limited overs duty, joins legspinner Cameron Boyce and spin-bowling all-rounder Glenn Maxwell among the slow bowling options.
"Our choice of Nathan Lyon comes off the back of good form in the KFC BBL and we decided the time is right to have another look at him in the shorter forms of the game," Marsh said.
Former T20 skipper George Bailey and Mitchell Marsh have been omitted from the Aaron Finch-captained squad.
Test skipper Steve Smith and swashbuckling batsman David Warner will only play the opening match as they prepare for the New Zealand tour starting in February.
Australia also made two changes to their one-day squad for the remaining two matches against India after taking an unassailable 3-0 lead in the series.
Lyon has been named in place of paceman Joel Paris, with Warner recalled at the expense of Usman Khawaja after missing matches for the birth of his second child.
One-day squad:
Steve Smith (capt), David Warner, George Bailey, Scott Boland, James Faulkner, Aaron Finch, John Hastings, Nathan Lyon, Mitchell Marsh, Shaun Marsh, Glenn Maxwell, Kane Richardson, Matthew Wade.
T20 squad: Aaron Finch (capt), Scott Boland, Cameron Boyce, James Faulkner, John Hastings, Travis Head, Nathan Lyon,
Chris Lynn, Glenn Maxwell, Shaun Marsh, Kane Richardson, Steve Smith, Shaun Tait, Andrew Tye, Matthew Wade, David Warner, Shane Watson
(Reporting by Ian Ransom; Editing by Peter Rutherford)
