Compliance
India | Navigating the New ITR-BN and Search-Case Filing Rules
With the CBDT’s recent notification introducing Form ITR-BN and revisions to Rule 332 for search and requisition cases effective April 1, 2026, taxpayers impacted by searches or notices must adapt quickly.
By NomadicTax Research Team • 5-8 min read • August 11, 2026
## What’s Changed Under Form ITR-BN and Rule 332
In late July 2026, India’s CBDT issued **Notification No. 97/2026 [F. No. 370142/11/2026-TPL]**, formalizing the **Income-tax (Third Amendment) Rules, 2026**, which include the new **Form ITR-BN** and modifications to **Rule 332** by inserting **Appendix IV**—regimes specially for returns dealing with **search and requisition cases**. These changes are effective **from April 1, 2026**. ([incometax.gov.in](https://www.incometax.gov.in/iec/foportal/latest-news?link=2&link=6&page=%2C0&year=2026&utm_source=openai))
## Who Is Affected
- Taxpayers subject to a **search or requisition** by tax authorities.
- Individuals or entities who may need to file returns under the new **ITR-BN** instead of standard forms ITR-1 through ITR-7 in such cases.
## Key Requirements and Implications
| Area | What’s New | Why It Matters |
|---|---|---|
| **Form ITR-BN** | Tailored return format for search/requisition cases. | Helps separate out and clearly capture income/assets discovered via search or requisition. |
| **Appendix IV under Rule 332** | Specific disclosures and formats required when filing in search/requisition cases. | Ensures uniformity and full disclosure; error may attract penalties or rejections. |
| **Effective date: 1 April 2026** | All relevant cases from that date forward must comply. | For any search/requisition launched after April 1, the new rules bind. |
## Example Scenario
Consider **Company X** underwent a requisition in July 2026. Under the old regime, the income discovered might have been reported via a revised return or updates. Now, Company X must use **Form ITR-BN**, follow Appendix IV’s detailed disclosures (e.g., particulars of assets located, unexplained incomes, etc.), and comply with new rules governing searches. Mistakes or delays may trigger higher compliance scrutiny or legal consequences.
## Actionable Advice for Taxpayers
- If you receive a **search or requisition**, consult immediately to determine whether ITR-BN needs to be filed.
- Keep detailed records of assets, cash, and unexplained income that may surface from such actions, to support disclosures.
- Review Appendix IV, understand the data fields required (nature of undisclosed asset, values, location, date, etc.).
- Engage with tax advisors to ensure your returns align with the format & avoid omissions.
- Be mindful of *filing deadlines*, since the new rules may affect timelines.
## Broader Impacts & Comparison
- Encourages **greater transparency** in search/requisition matters.
- May increase compliance costs, especially for businesses with complex structures or prior compliance gaps.
- Similar disclosure obligations appear in other jurisdictions under anti-money laundering or foreign asset regimes.
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With the new rules in place since 1 April 2026, agencies and taxpayers alike are expected to align — failure to do so may carry risks. If you foresee exposure to search or requisition, start early in mapping your disclosures and gathering evidence to stay compliant.