Ever had the Income Tax Department come knocking on your door with a search warrant? If yes, you know how intense that moment can be. That’s exactly where the newly introduced ITR-B Form steps in. This isn’t your average tax return. It’s a specialized disclosure tool rolled out by the Central Board of Direct Taxes (CBDT) for individuals and entities caught with their financial pants down—when unreported income is discovered during search and seizure actions.
What Is the ITR-B Form?
The ITR-B Form is a dedicated return for those who’ve had a little more stashed away than they let on—until the Income Tax Department found out. It’s used to declare undisclosed income that was unearthed during enforcement actions under:
- Section 132 (Search)
- Section 132A (Requisition)
Unlike regular ITRs that reflect annual income, ITR-B focuses on a “block period” to consolidate undisclosed earnings.
When Was the ITR-B Introduced?
The ITR-B Form was officially notified on April 7, 2025, through Notification No. 30/2025 by the CBDT. It applies to any search or requisition carried out on or after September 1, 2024.
Who Should File the ITR-B Form?
You’ll need to file ITR-B if:
- You’re an individual or firm whose books are audited under Section 44AB
- You’re a company, domestic or foreign
- You represent a political party
- Or, simply put—anyone whose premises were subject to a search or requisition after 01.09.2024 and undeclared income was discovered
Legal Basis of ITR-B
The form stems from Chapter XIV-B of the Income Tax Act, 1961, which covers block assessments for unaccounted income. The sections 132 and 132A lay the groundwork for search and requisition respectively, forming the legal foundation of this return.
Block Assessment Explained
This part’s crucial. The block period refers to:
- 6 years immediately preceding the year of search, plus
- The current financial year up to the date of the search
So, if your search was conducted on November 15, 2024, your block period would cover:
- FY 2018–19 to FY 2023–24
- And April 1 to November 15, 2024 (FY 2024–25)
Detailed Structure of the ITR-B Form
Let’s break it down piece by piece:
Part A – General Information
Here, you input your basic details:
- PAN, address, contact info
- Date of search
- Block period start and end dates
Part B – Computation of Income
Disclose your income head-wise:
- Salary
- House Property
- Business/Profession
- Capital Gains
- Other Sources
Part C – Undisclosed Income
This section is the heart of the form:
- Provide year-wise and head-wise breakdown
- Ensure accuracy and proper classification
Part D – Tax Payable
All taxes related to undisclosed income go here:
- Tax
- Surcharge
- Interest (if applicable)
Part E – Tax Payments & Credits
Mention eligible credits:
- TDS
- Advance Tax
- Other paid taxes
Note: Self-assessment tax is not allowed as credit for the block period.
Verification & Declaration
Just like signing off on any contract, this is your digital signature or EVC authentication. Be honest here—you’re liable for what’s submitted.
How to File the ITR-B Form
Here’s a quick walkthrough:
- Head over to the Income Tax e-filing portal
- Log in with your credentials
- Select ITR-B from the list of return forms
- Fill out all sections with accurate data
- Attach relevant documents (proof of income, credits, taxes paid)
- Submit using either:
- Digital Signature Certificate (DSC) or
- Electronic Verification Code (EVC)
Electronic Filing Requirements
- Companies, Audited Firms & Political Parties: Filing via DSC is mandatory
- All Other Individuals: Can use either DSC or EVC
No physical submission. It’s 100% digital.
Claiming Tax Credits: What’s Allowed?
You can claim the following against the tax liability on your undisclosed income:
- TDS
- Advance Tax
- Taxes paid under assessment proceedings
But here’s the catch:
You cannot claim self-assessment tax for the block period.
Also, each credit is subject to verification by the Assessing Officer, so keep your documentation clean and ready.
Role of the Assessing Officer
They’re the final gatekeepers. Their job is to:
- Scrutinize your disclosures
- Verify the authenticity of any tax credit claimed
- Accept or reject based on provided documentation
Common Mistakes to Avoid
- Not disclosing all undisclosed income
- Misreporting the year or income head
- Claiming ineligible credits
- Failing to attach supporting documents
Avoid these and your filing journey will be smooth.
Why Was ITR-B Introduced?
Two words: structured compliance.
The government noticed gaps in post-search disclosures. Rule 12AE was inserted to ensure everyone has a clear format and pathway for declaring hidden income after enforcement actions.
Penalties for Non-Compliance
If you skip ITR-B or file incorrectly, expect:
- Heavy penalties
- Prosecution under tax laws
- Interest on due amounts
- Disqualification from certain future tax benefits
It’s not worth the risk.
Benefits of Using ITR-B
- Protects you from further legal action
- Clears the slate post-search
- Shows cooperation with tax authorities
- Ensures tax credit utilization (where allowed)
Gone are the days when unreported income could stay under wraps. With the ITR-B Form, the government has made it crystal clear—if they find it, you better report it.
So if you or your business has ever been under the scanner for undisclosed income, the ITR-B is your lifeline. File it right, file it on time, and most importantly—file it honestly. Whether you’re handling it solo or getting professional help, don’t ignore this new rule in the tax book.
FAQs About ITR-B Form
- What is the ITR-B Form used for?
It’s used to declare undisclosed income found during search and requisition actions under Sections 132 and 132A. - Can an individual file ITR-B without a DSC?
Yes, individuals can file using an Electronic Verification Code (EVC) instead of a Digital Signature Certificate. - Can self-assessment tax be claimed under ITR-B?
No, self-assessment tax is not allowed as a credit in the block period return. - What duration does ITR-B cover?
It covers 6 previous financial years plus the current year up to the date of search or requisition. - Who verifies my tax credit claims?
Your Assessing Officer validates all tax credits. Claims are only accepted upon verification.
