Rule 180: Block-assessment return in ITR-BN
Rule 180 prescribes ITR-BN for the return required under section 294(1)(a) in the stated search or requisition cases. Companies use a digital signature; other persons may use a digital signature or electronic verification code. Certain claimed tax credits remain subject to Assessing Officer verification.
Official notified Income-tax Rules, 2026Need advice on Rule 180?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 180 - Return of income in respect of block assessment under section 294(1)
(1) The return of income required to be furnished by any person under section 294(1)(a), relating to any search initiated under section 247 or requisition made under section 248 shall be in the Form ITR-BN and be verified in the manner indicated therein.
(2) ITR-BN shall be furnished by a person, mentioned in column 2 of the following Table in the manner specified in column 3 thereof:
Sl. No. Person Manner of furnishing return of income 1. Company Electronically under digital signature. 2. Any person other than a company (A) Electronically under digital signature; or (B) transmitting the data electronically in the return under electronic verification code. (3) For the purposes of sub-rule (2), "electronic verification code" shall have the meaning assigned to it in rule 165.
(4) In a case where claim of credit of the tax payments is made against undisclosed income of the block period other than by way of self-assessment tax for the block period, claim of such credits and the allowability thereof shall be subject to the verification by and satisfaction of, the Assessing Officer.
(5) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the return in the manners specified in column 3 of the Table in sub-rule (2).
Rule breakdown
Confirm the block-assessment return requirement
The rule concerns the return under section 294(1)(a) relating to a search under section 247 or requisition under section 248. Use the notice and current Act to identify the covered block period and filing obligation.
ITR-BN is not the ordinary annual return form or a general substitute for correcting an earlier return.
Use the current prescribed ITR-BN
The rule prescribes ITR-BN and verification in the manner indicated in that form. Notification 97/2026 subsequently introduced Appendix IV containing ITR-BN.
Use the current official form and filing instructions; a description of the rule alone does not reproduce every schedule or field in the notified form.
Match verification to the taxpayer category
A company files electronically under digital signature. A person other than a company may file electronically under digital signature or through electronic verification code.
The meaning of electronic verification code is taken from Rule 165. The table does not provide a paper-filing alternative.
Substantiate the specified tax-credit claims
Claims of tax payments against undisclosed block-period income, other than self-assessment tax for the block period, are subject to verification by and satisfaction of the Assessing Officer.
Reconcile the payment, relevant income and period, and retain the evidence. Recording a credit in the return does not by itself ensure that it will be allowed.
Keep filing and data records
The Systems authorities specify data transmission procedures, formats and standards, along with security, archival and retrieval policies. Retain the filed return, verification and acknowledgement.
Seek case-specific assistance where search, requisition, other-person proceedings or credit allocation involves multiple years or entities.
Key takeaways
Specific block return
Use ITR-BN for the covered section 294 requirement.
Company signature
Companies must use a digital signature.
Credit verification
The stated credits require verification and satisfaction of the Assessing Officer.
Practical checklist
- Identify the notice and block-period scope.
- Use the current notified ITR-BN.
- Match verification to taxpayer category.
- Reconcile and substantiate claimed credits.
Avoid
- Do not assume an entry in the return establishes entitlement to every credit.
FAQs
Can a company use only EVC under this table?
The company row specifies electronic filing under digital signature.
Is paper filing listed?
No. Both rows specify electronic methods.
Are all tax credits automatically accepted when entered in ITR-BN?
No. Sub-rule (4) subjects the specified credits against undisclosed block-period income to Assessing Officer verification and satisfaction.
Glossary
- ITR-BN
- The return form prescribed for the block-assessment cases described in Rule 180.