Income-tax Act, 1961Section 158BC
- Return of undisclosed income for the block period within the notice period
- No revised return
- 158BD: undisclosed income of another person
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 158BC
Search & surveySection 158BC → Section 294
Block assessment procedure in search cases
Section 158BC of the old Income-tax Act, 1961 · new section 294 under the Income-tax Act, 2025
New reference Section 294 (158BD → 295; block period 158B → 301)
Income-tax Act, 2025Section 294 (158BD → 295; block period 158B → 301)
- Same procedure, now section 294
- Return within up to 60 days (extendable by 30 days in audit cases)
- No section 280 notice needed; no revised return
- Other person's undisclosed income: section 295
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered with the reinstated block assessment scheme. Finance Act 2026 added section 295(2)(c)–(d) on the block period for the 'other person' (old 158BD) and extended the block assessment time limit to 18 months (section 296(1)).
Practice notes
- Time limit for block assessment: section 296 (old 158BE).
Frequently asked
What is section 158BC called in the new Income Tax Act 2025?
Section 294 (block assessment procedure); 158BD is section 295.
What is section 158BC called in the new Income-tax Act, 2025?
Section 158BC of the Income-tax Act, 1961 corresponds to Section 294 (158BD → 295; block period 158B → 301) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 158BC under the new Income Tax Act?
Renumbered with the reinstated block assessment scheme. Finance Act 2026 added section 295(2)(c)–(d) on the block period for the 'other person' (old 158BD) and extended the block assessment time limit to 18 months (section 296(1)).
Is section 158BC still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 158BC of the 1961 Act. Section 294 (158BD → 295; block period 158B → 301) of the 2025 Act applies from tax year 2026-27.