Rule 180 of the Income-tax Rules, 2026

Where this rule sits

Rule 180 gives effect to Section 294, Section 247 and Section 248 of the Income-tax Act, 2025. A rule cannot go beyond the section it serves: where the two seem to differ, the section governs.

← Rule 179  ·  Rule 181 →

What this rule does

Sub-rule (1) prescribes the return form. 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 in it.

Sub-rule (2) carries a Table on the manner of furnishing. A company must furnish ITR-bn electronically under digital signature. Any person other than a company may furnish it electronically under digital signature, or by transmitting the data electronically in the return under electronic verification code. Sub-rule (3) takes the meaning of "electronic verification code" from rule 165.

Sub-rule (4) deals with tax credits. Where a claim of credit of tax payments is made against undisclosed income of the block period other than by way of self-assessment tax for the block period, the claim of such credits and their allowability shall be subject to the verification by, and satisfaction of, the Assessing Officer.

Sub-rule (5) puts the technical framework with the Principal Director-General of Income-tax (Systems) or the Director-General of Income-tax (Systems), who shall specify the procedures, formats and standards for secure capture and transmission of data and be responsible for evolving and implementing appropriate security, archival and retrieval policies for the furnishing of the return in the manners specified in the Table.

Why it is there

Block assessment following a search needs its own return, distinct from the annual return, because the period assessed and the income disclosed are different in kind. Section 294(1)(a) requires the return but leaves the form and the manner of filing to be prescribed. The rule names ITR-bn, splits the filing mode by whether the person is a company, and adds a safeguard on credits: in a block return, tax payments claimed against undisclosed income cannot simply be set off on the assessee's word, so anything other than self-assessment tax for the block period is subject to the Assessing Officer's verification and satisfaction.

Who it applies to

• Any person required to furnish a return under section 294(1)(a) relating to a search initiated under section 247 or a requisition made under section 248
• A company furnishing ITR-bn, which must do so electronically under digital signature
• Any person other than a company furnishing ITR-bn
• The Assessing Officer verifying claims of credit of tax payments
• The Principal Director-General or Director-General of Income-tax (Systems)

The figures, and what each one turns on

The forms it prescribes

• Form ITR-bn — return of income for the block period, verified in the manner indicated in the form

What this means in practice

The block return is a form of its own and is not filed on the ordinary return form; the choice of filing mode turns on a single question, whether the person is a company. A company has one route only, electronically under digital signature, and the electronic verification code route in the Table is open to everyone else. Sub-rule (4) is the provision that decides real disputes: credits claimed against undisclosed income of the block period, other than self-assessment tax paid for that period, are allowed only subject to the Assessing Officer's verification and satisfaction, so advance tax, tax deducted at source or taxes paid for the individual years within the block are not credited automatically because they appear in the records. The procedures, formats and standards under which the return is actually transmitted are those specified by the Principal Director-General or Director-General of Income-tax (Systems) under sub-rule (5).

An example

After a search initiated under section 247, a company is required to furnish a block return under section 294(1)(a). It files ITR-bn electronically under digital signature, the only manner open to it under Table Sl. No. 1. In the return it claims credit for tax deducted at source in the years falling in the block, along with self-assessment tax paid for the block period. The self-assessment tax stands on its own footing; the tax deducted at source claim falls under sub-rule (4) and is allowed only on the Assessing Officer's verification and satisfaction. A partner of the searched firm, not being a company, may instead transmit the data electronically under electronic verification code.

Where you meet this rule

A person searched under section 247 or covered by a requisition under section 248 meets it on receiving the notice to furnish the block return, and again when the Assessing Officer takes up the credits claimed in ITR-bn.

The words themselves

What people get wrong

• Filing the block period income in the ordinary return form. Sub-rule (1) prescribes Form ITR-bn.
• A company using electronic verification code. Table Sl. No. 1 allows a company only electronic filing under digital signature.
• Assuming all tax credits flow automatically into the block assessment. Sub-rule (4) makes credits other than self-assessment tax for the block period subject to the Assessing Officer's verification and satisfaction.
• Reading self-assessment tax for the block period as also requiring that verification. Sub-rule (4) applies to claims other than by way of such self-assessment tax.
• Looking outside rule 165 for the meaning of electronic verification code. Sub-rule (3) adopts it from there.

Read with

• Rule 165