CBDT Notifies ITR-BN for Block Assessment Under Income-tax Act, 2025

The Central Board of Direct Taxes (CBDT) has issued the Income-tax (Third Amendment) Rules, 2026 through Notification No. 97/2026, introducing Appendix IV (Form ITR-BN) in the Income-tax Rules, 2026. The newly notified return form is meant for block assessments arising from search and seizure proceedings under Chapter XVI-B of the Income-tax Act, 2025. The amendment is effective from April 1, 2026, and applies to all searches initiated under Section 247 or requisitions made under Section 248 on or after that date.

ITR-BN requires taxpayers to furnish comprehensive details relating to the block period, including general information, previously filed income tax returns, computation of undisclosed income, head-wise and item-wise breakup of undisclosed income, tax liability, taxes paid, and verification. The form also captures details of international transactions, specified domestic transactions, TDS/TCS credits, and self-assessment tax wherever applicable.

The notification states that the amendment is intended to operationalize the block assessment framework under the Income-tax Act, 2025 by prescribing a dedicated return form for reporting undisclosed income detected during search or requisition proceedings. The CBDT has also clarified that the retrospective effect from April 1, 2026 does not adversely affect any taxpayer. CA Sansaar

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