CBDT Notifies ITR-BN Form for Block Assessments from Search Cases
UPSC / SSC current affairs note · Economy
Why in news
The Central Board of Direct Taxes (CBDT) has notified a new income tax return form, ITR-BN, specifically for block assessments arising from search and seizure cases. This form, effective from April 1, 2026, aims to streamline the reporting of undisclosed income discovered during such operations.
Background
Block assessment is a special procedure under the Income-tax Act used to assess undisclosed income found during search, seizure, or requisition. It evaluates multiple prior assessment years together in a single proceeding. The new ITR-BN form is introduced under the Income-tax Act, 2025.
Key facts
ITR-BN stands for 'income tax return for block assessment'.
Notified by CBDT under the Income-tax Act, 2025.
Effective retrospectively from April 1, 2026.
Applicable only to taxpayers receiving a notice for block assessment after a search or seizure action.
Not meant for compliant salaried individuals or regular taxpayers.
Designed for reporting undisclosed income identified during search operations.
Block period determined based on search-related dates (initiation and final authorization execution).
Applies where search initiated under Section 247 or requisition under Section 248 of Income-tax Act, 2025 on or after April 1, 2026.
Undisclosed income includes hidden money, bullion, jewellery, valuable items, unrecorded transactions, false expense claims.
Prelims pointers
- ITR-BN: Income Tax Return for Block Assessment
- CBDT: Central Board of Direct Taxes
- Income-tax Act, 2025
- Section 247 (search) and Section 248 (requisition) of Income-tax Act, 2025
- Effective date: April 1, 2026
Mains angles
- Discuss the rationale behind introducing a separate ITR form for block assessments and its impact on tax compliance.
- Critically examine the provisions of block assessment under the Income-tax Act, 2025 and their role in curbing tax evasion.