The Central Board of Direct Taxes (CBDT) has notified a new ITR-BN form for taxpayers covered under search and seizure-related block assessments under the Income-tax Act, 2025. The new return form has been introduced through the Income-tax (Third Amendment) Rules, 2026 and will come into effect retrospectively from April 1, 2026.
Key Highlights
- CBDT introduced ITR-BN exclusively for block assessments arising from search and seizure proceedings under the new law.
- The new return form applies retrospectively from April 1, 2026, for eligible taxpayers only.
The newly introduced ITR-BN is a specialized return form and is not applicable to regular taxpayers, including salaried individuals or those filing standard returns such as ITR-1 or ITR-2. Instead, it is meant exclusively for cases involving undisclosed income identified during search and seizure proceedings conducted by the Income Tax Department.
ITR-BN Applicable Only for Block Assessment Cases
According to the CBDT notification, ITR-BN will apply where a search is initiated under Section 247 or a requisition is made under Section 248 of the Income-tax Act, 2025, on or after April 1, 2026. These cases fall under the block assessment provisions contained in Chapter XVI-B of the new tax law.
The return form is specifically designed to facilitate reporting of undisclosed income detected during search operations, ensuring a standardized compliance framework for taxpayers undergoing such assessments.
Details Required in ITR-BN
The newly notified form requires taxpayers to furnish detailed information related to the search proceedings and block assessment period. The key disclosures include:
- Details of search or requisition proceedings.
- Block assessment period covered.
- Income tax returns filed for relevant assessment years.
- Previously declared income.
- Undisclosed income detected during the search.
- Information relating to assets, investments, financial transactions, and other income connected with the block assessment.
The expanded reporting requirements aim to provide tax authorities with a comprehensive record of income and assets identified during investigations.
Also Read: ITR Filing 2026: Portal Upgraded as Filing Rush Doubles
Part of the Income-tax Act, 2025 Rollout
The notification forms part of the government's phased implementation of the Income-tax Act, 2025, which replaces several procedural provisions under the earlier tax regime. By introducing a dedicated return form for search and seizure assessments, the CBDT seeks to improve consistency, transparency, and efficiency in handling block assessment cases.
Tax experts, however, note that the transition could increase compliance requirements. According to professionals, taxpayers may need to reconcile return details filed under both the Income-tax Act, 1961 and the new Income-tax Act 2025 for overlapping assessment years. This may raise the possibility of technical errors, especially considering the prescribed 60-day filing timeline for block assessment returns.
Experts also believe that smooth implementation will depend on timely availability of filing utilities, detailed procedural guidance, and seamless digital support from the Income Tax Department.
Not for Regular Income Tax Return Filers
The CBDT has clarified that ITR-BN is not a replacement for existing ITR forms. The return will only be required for taxpayers who receive notices for block assessments following search or seizure actions by the tax authorities.
Although the notification was issued on July 24, 2026, the rules have been given retrospective effect from April 1, 2026. Consequently, all eligible block assessment cases initiated from that date will be required to file returns using the newly notified ITR-BN form, marking another key compliance measure under India's revamped income tax framework.
