What is ITR-BN? CBDT notifies new income tax return form; check eligibility and filing details

The Central Board of Direct Taxes (CBDT) has notified a new income tax return form for block assessments arising from search and seizure cases. The ITR-BN (income tax return for block assessment) form has been introduced under the Income-tax Act, 2025 and will take effect retrospectively from April 1, 2026.

However, this return form is not meant to be filed by compliant salaried individuals or other regular taxpayers. It is applicable only to those who receive a notice for block assessment after a search or seizure action initiated by the income tax department. This dedicated form aims to streamline the reporting of undisclosed income and make it easier to assess such cases.

What is block assessment?

Block assessment is a special procedure under the Income-tax Act, which is used to assess undisclosed income discovered during a search, seizure, or requisition. It evaluates multiple prior assessment years together in a single proceeding rather than assessing each year individually.

Undisclosed income may includes hidden money, bullion, jewellery, valuable items, or unrecorded transaction entries and false expense claims found during a search by the income tax officials.

Under the new provision, this block period will be determined based on the search-related dates, including the date of initiation of the search and the date on which the final authorisation is executed.

Who will have to file ITR-BN?

The newly notified income tax return form is meant to be filed exclusively for taxpayers whose cases are covered under the block assessment provisions following search and seizure operations.

It 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. In simple words, ITR-BN is nothing like other ITR forms and is designed only for reporting undisclosed income identified during search operations.

What details should be mentioned in ITR-BN?

Taxpayers filing this new form are required to provide their general information such as PAN, Aadhaar details, contact information, residential status and other identification details where applicable.

ITR-BN also seeks details about previous income tax returns filed for years covered under the block period. Taxpayers have to disclose income already reporter, assessment status, acknowledgement numbers and any pending assessment or reassessment proceedings.

The form covers up to six tax years preceding the tax year in which search was initiated under section 247 or any requisition was made under section 248 of Income-tax Act, 2025, according to the notice.

Section for tax payable in the new ITR form

The ITR-BN form also includes a dedicated section for calculating tax payable by the person on undisclosed income, along with applicable surcharge, health and education cess and interest liability.

The concept of block assessment in search cases was first introduced by the Finance Act of 1995, which added Chapter XIV-B (Sections 158B to 158BH) to the Income-tax Act, effective from July 1, 1995. Under this scheme, undisclosed income was calculated for a block period covering ten previous years. The Finance Act of 2001 later revised the definition of ‘block period’ to encompass six previous years, according to a Taxmann report.