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Income Tax

CBDT Notifies ITR-BN: New Block Assessment Return for Search & Requisition Cases

Published 6 Aug 2026· Updated 6 Aug 2026· 2 min read

The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Third Amendment) Rules, 2026 vide Notification G.S.R. 656(E) dated 24 July 2026, inserting Appendix IV into Rule 332 of the Income-tax Rules, 2026 and prescribing a new return form, ITR-BN, for block-period assessments arising from search or requisition action under the Income-tax Act, 2025. The amended rules apply retrospectively from 1 April 2026 to searches initiated under Section 247 and requisitions under Section 248 of the new Act.

What Triggered the Notification

The Income-tax Act, 2025 restructured the erstwhile Chapter XIV-B search-assessment framework (Sections 158B to 158BI of the 1961 Act) into a fresh set of provisions — Sections 247 (search), 248 (requisition) and 294 (notice for block return) — but had not, until this notification, prescribed the actual return form assessees must use to comply with a Section 294 notice. ITR-BN closes that gap.

What’s Covered

  • Date of initiation of search or requisition, and the date the last search authorisation was executed
  • The block period for which undisclosed income must be computed
  • Particulars of the Section 294 notice issued to the assessee, and the due date for filing
  • Year-wise disclosure of undisclosed income for the block period, separating income already assessed, income already disclosed in earlier returns, and income relating to each segment of the block period

Practical Implication

For assessees subject to search or requisition on or after 1 April 2026, the block-return computation is now a distinct, structured exercise rather than a modification of the standard ITR. Practitioners should build a year-wise reconciliation working paper — assessed income vs. disclosed income vs. undisclosed income — into every search-case engagement opened under the new Act, since the ITR-BN form demands that granularity directly rather than leaving it to supporting schedules.

Action Checklist

  • Identify all ongoing search/requisition engagements where the date of search falls on or after 1 April 2026
  • Prepare year-wise income reconciliation working papers ahead of the Section 294 notice
  • Track the due date specified in the notice separately from regular ITR due dates
  • Cross-verify the block period computed against the dates of search authorisation on record

Relevant Sections & References

  • Sections 247, 248 and 294 — Income-tax Act, 2025
  • Rule 332 and Appendix IV — Income-tax Rules, 2026
  • Notification G.S.R. 656(E), dated 24 July 2026 (CBDT)

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