Central Board of Direct Taxes has made further amendments to the Income-tax Rules, 2026, which were originally published vide notification 198(E) dated 20th March, 2026 and last amended vide notification G.S.R. 646(E) dated 21st July, 2026. These rules apply to any search initiated under section 247 or requisition made under section 248 of the Income-tax Act, 2025 on or after 1st April, 2026.

These rules may be called the Income-tax (Third Amendment) Rules, 2026. In rule 332, sub-rule (1), the words and figures “Appendix III” are substituted with “Appendix III and Appendix IV”. A new Appendix IV is inserted after Appendix III, containing Form ITR-BN, which is the Income Tax Return form for block assessment applicable to search and seizure cases under Chapter XVI-B of the Income-tax Act, 2025. The form covers general information, block period details, previously filed returns for tax years within the block period, computation of undisclosed income, tax payable, and details of taxes paid. The notification includes an Explanatory Memorandum certifying that no person is adversely affected by giving retrospective effect to this notification. This applies to persons subject to search and seizure proceedings under section 247 or requisition under section 248 of the Income-tax Act, 2025, and to tax practitioners and Assessing Officers involved in block assessment proceedings.