In April 2025, the Central Board of Direct Taxes (CBDT) introduced Form ITR-B, a new income tax return form which is specifically designed for the purpose of reporting the undisclosed income discovered during search and requisition operations. This step marks a crucial development in the Indian tax compliance framework, targeting individuals and entities that are served notices under Section 158BC of the Income Tax Act, 1961.
In this blog, we explore what Form ITR-B is, why it was introduced, who should file it, how it is filed, and key considerations for taxpayers. We also answer some frequently asked questions at the end.
What is Form ITR-B?
Form ITR-B is a special return form used to file income tax returns related to block assessment cases. It is not meant for regular annual filings like ITR-1 to ITR-7. Instead, it must be used only by those who receive a notice under Section 158BC following a search (u/s 132) or requisition (u/s 132A) by the Income Tax Department.
This form is applicable to searches or requisitions initiated on or after September 1, 2024 and was officially notified through Notification No. 30/2025 dated April 7, 2025.
Why Was ITR-B Introduced?
The Income Tax Department conducts searches and surveys to uncover undisclosed income or assets. Once a search is conducted, a taxpayer may be served with a notice under Section 158BC, asking them to file an income tax return for the block assessment period, which covers several past years.
Previously, there was no dedicated form for such filings. Taxpayers had to use makeshift solutions, which created confusion and inefficiencies. To resolve this, Form ITR-B was introduced to streamline the reporting of undisclosed income during such enforcement actions.
Who Should File ITR-B?
Form ITR-B must be filed by: –
- Individuals.
- Companies (domestic or foreign)
- Political parties.
- Firms.
- Any person served with a Section 158BC notice after a search or requisition initiated on or after September 1, 2024.
It is especially applicable to taxpayers whose books are subject to audit under Section 44AB, and it must be verified using a Digital Signature Certificate (DSC).
What is a Block Assessment?
A block assessment refers to the taxation of undisclosed income for a specific time block—usually 6 previous years plus part of the current year—when such income is discovered during a search or requisition. The Income Tax Department estimates income based on seized documents, books of accounts, cash, jewellery, or other incriminating evidence.
Form ITR-B facilitates reporting of both disclosed and undisclosed income over this period in a structured format.
Time Limit for Filing ITR-B
A taxpayer must file Form ITR-B within 60 days from the date of receiving the notice under Section 158BC. This deadline is non-negotiable and failure to file within the prescribed timeframe may result in:-
- Penalties.
- Risk of additional scrutiny.
- Interest on unpaid tax.
Structure and Contents of Form ITR-B
Form ITR-B is divided into five main parts: –
1. Part A – General Information
Includes basic taxpayer details like: –
- PAN and name.
- Address and contact details.
- Status. (Individual, Company, etc.)
- Date of search or requisition.
- Period covered under the block assessment.
2. Part B – Computation of Total Income
Breaks down total income for each assessment year under: –
- Salary
- House property
- Business or profession
- Capital gains
- Other sources
3. Part C – Computation of Undisclosed Income
Here, the taxpayer must:
- Provide year-wise data of undisclosed income.
- Separate speculative and non-speculative income.
- Report income from international transactions, if any.
4. Part D – Tax Payable
Calculates: –
- Tax on total income.
- Surcharge and cess.
- Interest under Sections 234A/B/C.
5. Part E – Details of Tax Payments
Captures credits for:
- Tax Deducted at Source (TDS)
- Tax Collected at Source (TCS)
- Advance tax
Note: Self-assessment tax is not allowed to be claimed in block assessments.
Verification Section
Must be verified through DSC (mandatory for companies, political parties, or tax audit cases) or EVC (where allowed).
How to File Form ITR-B Online?
Filing Form ITR-B is done entirely online via the Income Tax e-Filing Portal. Here’s the step-by-step process:
- Visit https://www.incometax.gov.in
- Log in using your credentials (PAN, Aadhaar, etc.)
- Navigate to the “e-Proceedings” tab
- Select the appropriate Section 158BC notice
- Fill out Form ITR-B online
- Attach supporting documents if necessary
- Submit using DSC or EVC (depending on your category)
- Download the acknowledgement
Important Points to Remember
- Applicable only to search/requisition cases after September 1, 2024
- Must be filed within 60 days of receiving notice
- Claim of self-assessment tax is not permitted
- Ensure an accurate declaration to avoid further proceedings
- Keep documentation of all undisclosed assets and income
Conclusion
Form ITR-B represents a remarkable step toward making post-search tax assessments more transparent, efficient and compliant with digital systems. Taxpayers subject to search proceedings must take the 158BC notice seriously and ensure they file the return correctly, within the deadline.
With proper preparation and professional advice, filing Form ITR-B can help close enforcement proceedings and bring your tax status into full compliance. As the CBDT continues to digitize and streamline the enforcement, knowing how to respond to such notices is crucial for high-risk taxpayers.
FAQs on Form ITR-B
1. What is Form ITR-B used for?
Form ITR-B is used to file income tax returns for undisclosed income discovered during a search or requisition under the Income Tax Act, under Section 158BC.
2. Who is required to file ITR-B?
Any person who has received a notice under Section 158BC due to a search or requisition initiated on or after September 1, 2024, must file ITR-B.
3. What is the time limit to file ITR-B?
You must file the return within 60 days of receiving the notice.
4. Can I file ITR-B offline?
No. ITR-B must be filed online via the e-Filing Portal under the e-Proceeding section.
5. Can I claim self-assessment tax in ITR-B?
No. Self-assessment tax cannot be claimed in a block assessment filing under ITR-B.
6. What is a “block period” in this context?
The block period usually includes the last 6 assessment years and part of the current financial year in which the search occurred.
7. Can a salaried employee be required to file ITR-B?
Yes, if a salaried individual is subject to a search and undisclosed income is found, they may receive a 158BC notice and need to file ITR-B.
8. Is DSC mandatory for filing ITR-B?
Yes, for companies, firms under audit, and political parties. Others may use EVC, depending on eligibility.
9. What happens if I miss the 60-day deadline?
Non-compliance may result in penalties, interest, and possibly prosecution under the Income Tax Act.
10. Where can I get assistance for filing ITR-B?
You can consult with a Chartered Accountant (CA) or a tax professional experienced in search cases. The Income Tax Department’s helpline and the official portal also offer assistance.
