Rule 180 of the Draft Income-tax Rules, 2026 prescribes the procedure for filing returns of income in cases of block assessment under section 294(1), arising from searches under section 247 or requisitions under section 248. It mandates that such returns be furnished in Form ITR-BL and verified in the manner specified therein. The mode of filing depends on the category of the assessee: companies are required to file electronically under digital signature, while persons other than companies may file either under digital signature or by transmitting data electronically using an electronic verification code, as defined in rule 165. The rule further provides that where credit of tax payments is claimed against undisclosed income of the block period—other than by way of self-assessment tax for that block period—the claim and its allowability shall be subject to verification and satisfaction of the Assessing Officer. Additionally, the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) is tasked with specifying procedures, formats, and technical standards to ensure secure electronic data capture, transmission, archival, and retrieval. Overall, Rule 180 establishes a structured and technology-driven compliance mechanism for reporting undisclosed income in block assessments, while strengthening verification controls and digital security safeguards.
Extract of Rule No. 180 of Draft Income-tax Rules, 2026
Rule 180
Return of income in respect of block assessment under section 294(1) of the Act.
(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-BL and be verified in the manner indicated therein.
(2) ITR-BL shall be furnished by a person, mentioned in column (2) of the Table below in the manner specified in column (3) thereof:__
| Sl. No. | Person | Manner of furnishing return of income |
| (1) | (2) | (3) |
| 1. | Company | Electronically under digital signature. |
| 2. | Any person other than a company | (A) Electronically under digital signature.
(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 same meaning as 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.
