Computation of total income of block period
[Section-293 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 293(1) of Income Tax Act 2025
293(1) The total income of the block period referred to in section 292(1) shall be the aggregate of the following:—
- 293(1)(a) undisclosed income declared in the return furnished under section 294;
- 293(1)(b) income assessed under section 270(10) or section 271 or 279 of this Act, or section 153A or 153C of the Income-tax Act, 1961, prior to the date of initiation of search or the date of making of requisition in respect of tax years comprising the block period;
- 293(1)(c) income declared in the return of income furnished under section 263 or in response to a notice under section 268(1) or 280 in respect of tax years comprising the block period, which is not covered under clause (a) or (b);
- 293(1)(d) income determined––
- (i) in respect of a tax year, where such tax year has ended and the due date for furnishing the return for such year has not expired prior to the date of initiation of the search or the date of requisition, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course before the date of initiation of search or the date of requisition;
- (ii) in respect of period commencing from 1st April of the tax year in which the search is initiated or requisition is made and ending on the day immediately preceding the date of initiation of search or requisition, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course for such period on or before the day immediately preceding the date of initiation of search or the date of requisition;
- (iii) in respect of period commencing from the date of initiation of the search or the date of requisition and ending on the date of the execution of the last of the authorisations for search or requisition, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course for such period on or before the date of the execution of the last of the authorisations;
- 293(1)(e) undisclosed income determined by the Assessing Officer under sub-section (2).
Section 293(2) of Income Tax Act 2025
293(2) The undisclosed income forming part of the total income referred to in section 292(1) shall be computed on the basis of following:––
- (a) evidence found as a result of search or survey or requisition; and
- b) any other material or information as are either available with the Assessing Officer or comes to his notice during the course of proceedings under this Chapter.
Section 293(3) of Income Tax Act 2025
293(3) The relating to any international transaction or specified domestic transaction referred to in section 166, shall not be considered for the purposes of determining the total income of the block period, and shall be considered in the assessment made under other provisions of this Act, if––
- 293(3)(a) such income pertains to the period beginning from the 1st April of the tax year in which last of the authorisations was executed and ending with the date of execution of the last of the authorisations; and
- 293(3)(b) such income is required to be determined––
- (i) as a result of search or requisition of books of account or other documents; or
- (ii) based on any other material or information as are either available with the Assessing Officer or comes to his notice during the course of proceedings under this Chapter; or
- (iii) based on entries relating to income or transactions as recorded in books of account and other documents maintained in the normal course on or before the date of the execution of the last of the authorisations.
Section 293(4) of Income Tax Act 2025
293(4) For the purposes of determination of undisclosed income,––
- (a) of a firm, such income assessed for each of the tax years falling within the block period shall be the income determined before allowing deduction of salary, interest, commission, bonus or remuneration, by whatever name called, to any partner not being a working partner;
- (b) the provisions of sections 102, 103, 104 and 105 shall, so far as may be, apply and reference to tax year in those sections shall be construed as references to the relevant tax year falling in the block period;
- (c) the provisions of section 166 shall, so far as may be, apply and reference to tax year in that section shall be construed as reference to the relevant tax year falling in the block period excluding the period referred to in sub-section (3).
Section 293(5) of Income Tax Act 2025
293(5) The tax referred to in section 292(7) shall be charged on the total income pertaining to the block period determined in the manner specified in sub-section (1) as reduced by the total income referred to in clause (b), (c) and (d) of the said sub-section.
Section 293(6) of Income Tax Act 2025
293(6) For the purposes of sub-sections (1) and (5), the following shall be ignored:––
- (a) the undisclosed income declared under sub-section (1)(a) is a loss; or
- (b) the income disclosed in respect of any tax year comprising the block period is a loss; or
- (c) the returned income or assessed income under sub-section (1)(b) or (c) is a loss; or
- (d) the income as determined under of sub-section (1)(d) is a loss.
Section 293(7) of Income Tax Act 2025
293(7) For the purposes of assessment, losses brought forward from the tax year (prior to the first tax year comprising the block period) under Chapter VII or unabsorbed depreciation under section 33(11) shall not be set off against the undisclosed income determined in the block assessment under this Chapter.
Section 293(8) of Income Tax Act 2025
293(8) Losses or unabsorbed depreciation as referred to in sub-section (7) may be carried forward for being set off in the tax year subsequent to the tax year in which the block period ends, for the remaining period, taking into account the block period and such tax year, and as per the provisions of this Act.
FAQs on Section 293 of Income Tax Act 2025
What is meant by the computation of total income of the block period under Section 293(1)?
The total income of the block period is the aggregate of several categories of income, including undisclosed income declared under Section 294, income assessed under specified sections prior to the search/requisition, income declared in returns filed in response to notices, income determined from books of account and documents maintained before and during the search, and undisclosed income determined by the Assessing Officer under Section 293(2).
What types of income are included under Section 293(1)(a) to (e)?
They include:
(a) Undisclosed income declared under Section 294.
(b) Income assessed under Sections 270(10), 271, 279 of this Act, or under Sections 153A or 153C of the 1961 Act.
(c) Income declared in returns under Section 263 or in response to notices under Sections 268(1) or 280.
(d) Income determined based on regular books of account for specified periods before and during search.
(e) Undisclosed income determined by the Assessing Officer under Section 293(2).
What is the basis for computing undisclosed income under Section 293(2)?
Undisclosed income is computed based on evidence found during search, survey, or requisition, as well as any other material or information available with or discovered by the Assessing Officer during the proceedings.
Are international or specified domestic transactions included in the block period income?
No, as per Section 293(3), income relating to international or specified domestic transactions that arise during the period starting from April 1 of the tax year in which the last search authorization was executed, up to the date of that execution, are excluded from the block period computation and are dealt with separately under other provisions.
How is the income of a firm computed under the block period provisions?
As per Section 293(4)(a), the income of a firm for each tax year in the block period is computed before allowing deductions for salary, interest, commission, bonus, or remuneration to any partner who is not a working partner.
Are general provisions of the Act applicable to computation under block period assessment?
Yes, Sections 102 to 105 and Section 166 are applicable as per Section 293(4)(b) and (c), but with references to “tax year” construed as references to the tax years falling in the block period, excluding the period mentioned in Section 293(3).
How is tax calculated on the total income of the block period under Section 293(5)?
Tax is charged on the total income computed under Section 293(1) after reducing the income included under clauses (b), (c), and (d) of that subsection.
Are losses considered in the computation of total income for the block period?
No, as per Section 293(6), any loss in the undisclosed income declared, income disclosed in returns, returned/assessed income, or income determined from books under Section 293(1)(a) to (d), is ignored in computing total income of the block period.
Can losses or unabsorbed depreciation from prior years be set off against the block period income?
No, Section 293(7) prohibits set-off of losses brought forward from tax years prior to the first year in the block period or of unabsorbed depreciation under Section 33(11) against undisclosed income of the block period.
Can such losses or unabsorbed depreciation be carried forward?
Yes, under Section 293(8), they may be carried forward and set off in the tax year following the end of the block period, considering the remaining eligible period and in accordance with the provisions of the Act.
