CBDT notified the Income-tax (Third Amendment) Rules, 2026 through Notification No. 97/2026 dated 27 July 2026, introducing Form ITR-BN and amending Rule 332 by inserting Appendix IV for returns relating to search and requisition cases.

Why is this important?

Returns arising from search and requisition proceedings require specialised reporting and should not be approached like an ordinary income-tax return. The introduction of ITR-BN creates a specific reporting framework for these cases under the new Income Tax regime.

Businesses, promoters and taxpayers facing search/requisition proceedings should therefore ensure that the return being prepared follows the new prescribed form, schedules and validation requirements, rather than relying upon the reporting framework used under the earlier law.

What should taxpayers do?

Where a search or requisition proceeding applies, the first step should be to determine the correct reporting period and carefully reconcile seized/requisitioned information, books, tax records and disclosures before preparing ITR-BN.

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