The Central Board of Direct Taxes (CBDT) has notified a new Income Tax Return (ITR) form, ITR-BN, for taxpayers covered under block assessment proceedings arising from search and requisition actions under the Income-tax Act, 2025, through Notification No. 97/2026/F. No. 370142/11/2026-TPL.
The amendment has been rolled out via the Income-tax (Third Amendment) Rules, 2026, as informed by the Ministry of Finance on July 24, 2026. A new Appendix 4 has been inserted by this notification into the Income Tax Rules, 2026, and prescribes ITR-BN as the return form to be used for block assessments.
The Notification No. 97/2026/F. No. 370142/11/2026-TPL States That
Under the notification, Rule 332 of the Income Tax Rules, 2026 has been revised to include a new Appendix 4. The appendix includes the format of ITR-BN, a dedicated return form for block assessment proceedings pertinent to search and seizure cases. The norms will be effective from April 1, 2026, and apply to searches initiated u/s 247 or requisitions made u/s 248 of the Income Tax Act, 2025.
What Is the New ITR-BN Form Introduced by CBDT?
ITR-BN is a specialised return form made for taxpayers who are subject to block assessment proceedings after a search, seizure, or requisition measure by the tax authorities.
The form asks for the detailed information for-
- Search & requisition actions
- Block period for income tax assessment
- View & download past ITR filings
- Declared income under the relevant assessment years
- Undisclosed income identified during the block period
- Reporting assets, transactions, and income-related information
The form is for cases that are included under Chapter XVI-B dealing with search-related assessments.
Applicability of the ITR-BN Form
The notification specifies that the new provisions apply to searches beginning on or after 1st April, 2026 u/s 247 and requisitions u/s 248 of the Income Tax Act, 2025. Taxpayers that come under the extent of block proceedings will be required to provide information in the newly specified ITR-BN format.
Information Required in ITR-BN Form
The notified form fetches extensive data, which includes-
- Taxpayer identification & personal info
- Details of search initiation and authorisation
- Notices issued under the Income Tax Act, 2025
- Income tax return filing history under the block assessment period
- Details of income from salary, business, house property, capital gains, and other sources
- Computation of income detected in block assessment proceedings
- The form requires details relating to valuable assets, virtual digital assets (VDAs), expenditure claims, deductions, and exemptions, wherever applicable.
The format is to ease the assessment of income determined in search proceedings and ensure uniform reporting across block assessment matters.
What is its Significance?
A new framework has been rolled out by the Income Tax Act 2025 for search-related assessments. With the notification of ITR-BN, CBDT has furnished the operational procedure for reporting income and undisclosed assets in block assessment matters.
The procedure can ease assessment procedures, standardise disclosures, and enhance administration of search and seizure cases under the new tax law regime.
Closure
The notification of ITR-BN specifies another crucial step in the execution of the Income Tax Act, 2025. Taxpayers encountering the block assessment proceedings that have emerged from search or requisition measures must familiarise themselves with the new form and the data needs specified by the CBDT.
As search assessment processes evolve under the new law, ITR-BN is positioned to become a major compliance document for impacted taxpayers.
FAQs Related to New ITR BN Form
What is the new ITR-BN form?
ITR-BN is a specialised income tax return form made for taxpayers under the block assessment proceedings after search, seizure, or requisition measures by tax authorities.
Who should utilise the ITR-BN form?
Taxpayers who come under block assessment proceedings through search and requisition actions under the Income Tax Act, 2025, should use this form.
When did the new ITR-BN norms come into force?
From April 1, 2026, the new norms, along with the notification of ITR-BN, are considered to have come into effect.
What sort of details does the ITR-BN form need?
The ITR-BN form requires detailed information relating to search or requisition proceedings, the relevant block period, previously filed income tax returns, declared income, undisclosed income identified during the proceedings, and details of related assets and financial transactions.
What is the objective of the ITR-BN form?
The ITR-BN form is intended to streamline the assessment of income determined during search proceedings and ensure uniform reporting across block assessment cases. It also facilitates the efficient processing of search and seizure cases under the Income Tax Act, 2025.
CBDT Notification No. 97/2026/F. No. 370142/11/2026-TPL
