[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

NOTIFICATION NO

97/2026; Dated: July 24, 2026

G.S.R. 656(E).- In exercise of the powers conferred by section 294 read with section 533 of the Income-tax Act, 2025 (30 of 2025), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 2026, namely:-

1. (1) These rules may be called the Income-tax (Third Amendment) Rules, 2026.

(2) They shall be deemed to have come into force on the 1st day of April, 2026.

2. Application. - These rules shall apply on any search initiated under section 247 or requisition made under section 248 of the Income-tax Act, 2025 on or after the 1st day of April, 2026.

3. In the Income-tax Rules, 2026,-

a) in rule 332, in sub-rule (1), for the word and figure "Appendix III", the words and figures "Appendix III and Appendix IV" shall be substituted;

b) after Appendix III, the following shall be inserted, namely:-

"APPENDIX IV
[see rule 332(1)]

ITR-BN

Note 1: Tax Year Y6 to Y1:

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 (30 of 2025).

Tax Year Y0:

- Where search/requisition is concluded in the same year in which it was initiated: Y0 is the period from the 1st April of the Tax Year in which search/requisition initiated up to the date of execution of the last of the authorisations for search or requisition.

- Where the date of execution of the last of the authorisations for search or requisition falls in a tax year subsequent to the year in which the search or requisition was initiated: Y0 is the complete tax year from the 1st April of the year in which search/requisition is initiated and up to 31st March of that year.

Tax Year Y+1 (To be filled in case the date of execution of the last of the authorisations for search or requisition falls in a tax year subsequent to the year in which the search or requisition was initiated): Y+1 is the period in the tax year from the 1st April of the year in which last of authorisations of search/requisition was executed and ending with the date of last of authorisations of search/requisition.

Note 2: Where the undisclosed income of the other person pertains only to the period commencing from the tax year (herein referred to as the specified year) immediately preceding the year of initiation of search or requisition; and ending on the date of initiation of search or making of requisition, then the block period in respect of such other person shall comprise of the specified year and the period starting from the 1st April of the tax year in which search was initiated or requisition was made and ending on the date of the execution of the last of the authorisations for such search or such requisition.

Note 3: Where the undisclosed income of the other person pertains to a single tax year out of the five tax years preceding the specified year, then the block period in respect of such other person shall comprise of only that single tax year.

Note 4: Refer section 293(2)(c)(i) of the Income-tax Act, 2025 (30 of 2025), for the purposes for filing details of the tax year Y1 where the relevant tax year has ended and the due date for furnishing the return under section 139(1) of the Income-tax Act, 1961 or section 263(1) of the Income-tax Act, 2025 for such year has not expired, where accounts are not audited (if they are required to be audited), provisional figures are required to be furnished based on the books of account maintained in normal course. This shall not be considered as a return under section 139(1) of the Income-tax Act, 1961 or section 263(1) of the Income-tax Act, 2025 for the relevant tax year. Further, this income is required to be included in the return of income furnished under section 139 of the Incometax Act, 1961 or section 263 of the Income-tax Act, 2025 (30 of 2025) for the relevant tax year. (as applicable)

Note 5: Refer section 293(2)(c)(i) of the Income-tax Act, 2025 (30 of 2025), for the purposes for filing details of the tax year Y0 (where Y0 is a complete year) where the relevant tax year has ended and the due date for furnishing the return under section 263(1) of the Income-tax Act, 2025 (30 of 2025) for such year has not expired, provisional figures are required to be furnished based on the books of account maintained in normal course. This shall not be considered as a return under section 263(1) of the Income-tax Act, 2025 (30 of 2025) for the relevant tax year. Further, this income is required to be included in the return of income furnished under section 263 of the Income-tax Act, 2025 (30 of 2025) for the relevant tax year.

Note 6: Refer section 293(5) of the Income-tax Act, 2025 (30 of 2025), in terms of the provisions of this section, any undisclosed income in respect of any international transaction or specified domestic transaction pertaining to the part tax year comprising in the block period is required to be assessed under provisions other than the applicable provisions for block assessment. Accordingly, any undisclosed income on this account is not required to be submitted as part of the block return.

Note 7: Where any reference is made in this return to any tax year commencing on 1st April of 2025 or any earlier tax year, the same shall be construed as a reference to the corresponding previous year under the Income-tax Act, 1961 (43 of 1961).".

[Notification No. 97/2026/F. No. 370142/11/2026-TPL]

(Pradeep Sharma)
Dy. Secy., Tax Policy and Legislation

Note: The Income-tax Rules, 2026 were published vide notification 198(E), dated the 20th March, 2026 and last amended vide notification GSR 646(E), dated the 21st July, 2026.

Explanatory Memorandum: It is certified that no person is being adversely affected by giving retrospective effect to this notification.