Form ITR-B is a specialised Income Tax Return form introduced by the Ministry of Finance through Gazette Notification No. 30/2025 (April 7, 2025) for taxpayers subjected to search operations under Section 132 or requisition proceedings under Section 132A of the Income Tax Act, 1961. The form captures and reports undisclosed income identified during such proceedings and must be filed electronically within 60 days of the tax notice. ITR-B can cover up to six preceding assessment years simultaneously, making it a unique multi-year return.
What Is Form ITR-B?
Form ITR-B is a dedicated return for reporting income that was not disclosed in the regular Income Tax Returns for previous years and was uncovered during search or requisition proceedings by the Income Tax Department. Unlike regular ITR forms (ITR-1 through ITR-7) that cover a single financial year, ITR-B can span multiple assessment years in a single filing.
The form was introduced as part of the block assessment provisions amended by the Finance Act, 2024, which reintroduced block assessments for search cases initiated on or after September 1, 2024. Under block assessment, the Assessing Officer can assess the total undisclosed income for a block period of up to six years preceding the year of search.
ITR-B vs. Regular ITR Filing
| Feature | Form ITR-B | Regular ITR (ITR-1 to ITR-7) |
| Purpose | Report undisclosed income found during search/requisition | Report total income for the financial year |
| Period covered | Block of up to 6 assessment years | Single financial year |
| Trigger | Search under Section 132 or requisition under Section 132A | Annual filing obligation |
| Filing deadline | 60 days from the tax notice date | July 31 / October 31 / November 30 (depending on category) |
| Mandatory for | Only taxpayers are subjected to search/requisition | All taxpayers above the exemption limit |
| Relationship | Filed in addition to the regular ITR | Filed independently |
Who Must File Form ITR-B?
Electronic filing of Form ITR-B is mandatory for any person subjected to a search operation under Section 132 or a requisition under Section 132A of the Income Tax Act, initiated on or after September 1, 2024.
| Eligible Filer | Filing Method |
| Domestic companies | Mandatory DSC (Digital Signature Certificate) |
| Foreign companies | Mandatory DSC |
| Political parties | Mandatory DSC |
| Individuals and HUFs subject to tax audit (Section 44AB) | Mandatory DSC |
| All other individuals, HUFs, and firms | DSC or EVC (Electronic Verification Code) |
The filing obligation extends to any person whose case reveals undisclosed income, whether or not they have previously filed a regular ITR for the block period years. If a regular ITR was filed but did not include the undisclosed income, ITR-B captures the additional income.
Structure of Form ITR-B
The form is systematically divided into six parts, each serving a specific purpose in the block assessment process.
| Part | Section | Information Required |
| Part A | General Information | PAN, name, contact details, employment nature, dates of search operation, block period details, and Assessing Officer jurisdiction |
| Part B | Income Computation | Year-wise breakdown of income from salary, house property, business/profession, capital gains, and other sources for each assessment year in the block |
| Part C | Undisclosed Income | Detailed breakup of undisclosed income categorised by assessment year, source, and head of income with supporting explanations |
| Part D | Tax Payable | Computation of tax, surcharge, health and education cess, and interest payable on the undisclosed income for each year |
| Part E | Payments and Credits | Details of TDS, advance tax, self-assessment tax already paid, and any other credits available against the block assessment demand |
| Part F | Verification | Taxpayer’s declaration confirming the accuracy of the submitted data, signed with DSC or verified through EVC. |
Block Assessment Under Section 158B
The block assessment provisions define how undisclosed income is assessed across multiple years.
| Component | Details |
| Block period | Up to 6 assessment years preceding the year in which the search was conducted |
| Undisclosed income definition | Income not disclosed in a regular ITR or income for which no regular ITR was filed. |
| Tax rate on undisclosed income | At rates applicable to the respective assessment years (not a flat rate) |
| Interest on undisclosed income | Under Sections 234A, 234B, and 234C as applicable |
| Penalty provisions | Separate penalty proceedings may be initiated under Section 271AAB for undisclosed income. |
| Regular assessment | Continues separately for disclosed income; ITR-B covers only the undisclosed portion. |
The block assessment does not replace the regular assessment. If the taxpayer has filed a regular ITR for the years in the block period, the Assessing Officer assesses only the additional undisclosed income through ITR-B. If no regular ITR was filed for any year in the block, the entire income for that year is assessed through the block assessment.
Filing Process
Step 1. Receive the notice from the Assessing Officer following the search or requisition proceedings. The notice specifies the block period and requires the filing of ITR-B within 60 days.
Step 2. Log in to the Income Tax e-filing portal using PAN and password.
Step 3. Navigate to e-File, then Income Tax Returns, then File Income Tax Return. Select Form ITR-B and the applicable block period.
Step 4. Complete Part A with general information, including the date of search, warrant details, and block period years.
Step 5. Complete Part B by computing income for each assessment year in the block period. Separate the disclosed income (already reported in the regular ITR) from the undisclosed income discovered during the search.
Step 6. Complete Part C with detailed particulars of undisclosed income, including the source, nature, and amount for each year. Provide explanations and supporting references to seized documents or statements recorded during the search.
Step 7. Part D auto-computes the tax, surcharge, cess, and interest payable on the undisclosed income. Review the computation carefully.
Step 8. Complete Part E by entering details of any taxes already paid (advance tax, self-assessment tax, TDS credits) that can be adjusted against the block assessment demand.
Step 9. Pay the balance tax through a challan before filing.
Step 10. Submit using DSC (mandatory for companies, audit cases, and political parties) or EVC (for other persons). The return is filed electronically, and an acknowledgment is generated.
Critical Compliance Notes
The 60-day filing deadline from the date of notice is strict. Non-filing or late filing can result in a best judgment assessment by the Assessing Officer under Section 158BC, in which the officer determines the undisclosed income based on available evidence without the taxpayer’s input.
ITR-B filing does not prevent the Assessing Officer from initiating penalty proceedings under Section 271AAB for undisclosed income. The penalty ranges from 30% to 60% of the undisclosed income, depending on when and how the taxpayer admits to the income.
All seized documents, books, and records must be retained and available for reference during the block assessment proceedings. The taxpayer should work closely with their legal and tax advisors when preparing ITR-B to ensure accurate reporting and minimise penalty exposure.
Key Terms
• Form ITR-B: The specialised Income Tax Return form for reporting undisclosed income discovered during search (Section 132) or requisition (Section 132A) proceedings
• Block Assessment: The assessment of undisclosed income across a block of up to 6 preceding assessment years following a search operation
• Section 132: The Income Tax Act provision authorising search and seizure operations by the Income Tax Department at business premises or residences
• Section 132A: The provision for requisition of books of accounts, documents, and assets from authorities who have seized them under other laws
• Undisclosed Income: Income that was not reported in regular ITR filings and is discovered during search or requisition proceedings
Facing a Search Assessment?
Ensure accurate reporting of undisclosed income within the 60-day deadline. Use WFYI resources for tax compliance guidance and connect with qualified professionals.
| Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified tax professional for advice specific to your situation. |
Ready to Simplify Your Tax Compliance?
WFYI provides comprehensive tools and resources to help you manage GST, income tax, and financial compliance with ease.
Frequently Asked Questions
Q1: What is Form ITR-B?
Form ITR-B is a specialised return for reporting undisclosed income discovered during search (Section 132) or requisition (Section 132A) proceedings. It covers a block of up to 6 assessment years and must be filed within 60 days of the tax notice.
Q2: Who must file ITR-B?
Any person subjected to a search or requisition initiated on or after September 1, 2024, must file ITR-B. This includes individuals, HUFs, companies, firms, and political parties.
Q3: Is ITR-B filed in addition to the regular ITR?
Yes. ITR-B covers only the undisclosed income found during the search. Regular ITR for each financial year must still be filed separately, covering the disclosed income.
Q4: What is the penalty for undisclosed income reported in ITR-B?
Penalties under Section 271AAB range from 30% to 60% of the undisclosed income. The rate depends on whether the taxpayer admits to the income during the search, in the statement under Section 132(4), or only upon assessment.
Q5: What happens if ITR-B is not filed within 60 days?
Non-filing allows the Assessing Officer to complete the block assessment as a best judgment assessment, determining the undisclosed income based on available evidence. Additional penalties and interest may apply.
