IT Raid Filed ITR-BN? Your 6 Years Under Scrutiny

The tax department has introduced a new ITR-BN form for people who face a block assessment after an income tax search or seizure operation. If your premises are raided, all undisclosed income across multiple years gets assessed together using this single form.

Here's what happened: CBDT has introduced ITR-BN, a dedicated return form for taxpayers subjected to block assessment after search and seizure operations by income tax authorities.. Block assessment consolidates undisclosed income found during a search across up to 6 previous assessment years into one combined tax demand.. The new form is effective from April 1, 2026, and is separate from regular ITR forms — it applies only in search-triggered assessment proceedings..

What you should do: Declare all income correctly in your regular ITR every year — undisclosed cash, property, or investments discovered during a search attract tax plus heavy penalties up to 60% of undisclosed income.. If your premises or a connected person's premises are searched, immediately hire a qualified chartered accountant experienced in search and seizure matters — do not file ITR-BN without professional help.. Review and digitally store all financial records — bank statements, property documents, investment proofs — so you can explain every asset if questioned during any income tax survey or search..

Even if only your employer or business partner is searched, you can be called for a 'third-party search' and asked to explain your income. Keep clean paper trails for at least 7 years.

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