ITR-BN Form 2026: Big news for taxpayers. If you regularly submit ITR-1, ITR-2, ITR-3, or other standard income tax returns annually, there is an update that might interest you. The Central Board of Direct Taxes (CBDT) has introduced a new ITR-BN form tailored for individuals or entities who are under investigation by the Income Tax Department due to search, seizure, or requisition actions, as well as those subject to Block Assessment. This fresh form, effective from April 1, 2026, is established under the Income Tax Act, 2025.
Block assessment is a unique procedure employed by the Income Tax Department to evaluate undisclosed income or assets found during a raid. Instead of assessing each year separately, the department reviews income from multiple years simultaneously, which may involve unreported cash, precious metals, jewelry, other valuable possessions, undisclosed business dealings, or false expenses identified during the investigation.
The CBDT clarifies that individuals who receive a block assessment notification from the Income Tax Department are the only ones required to fill out the ITR-BN form. If you adhere to tax regulations and regularly file a standard ITR form each year, you do not need to engage with this new form. Salaried individuals, retirees, small enterprises, and typical taxpayers will proceed with their usual ITR forms.
The new form necessitates taxpayers to provide basic details such as PAN, Aadhaar, address, contact details, and residency status. Additionally, they must disclose details about prior ITRs filed during the block period, including acknowledgment numbers, previously reported income, and ongoing assessments or reassessments. This form encompasses data for a maximum of six tax years preceding the commencement of the investigation.
ITR-BN also allows for a separate computation of tax, surcharge, health and education cess, and interest on undisclosed income. Although the block assessment mechanism is not novel, having been introduced in 1995 and revised in 2001 to shorten the block period from 10 years to 6 years, the introduction of ITR-BN under the Income Tax Act, 2025 aims to streamline and enhance the entire process. Crucially, law-abiding taxpayers need not file ITR-BN.