ITR filing 2025: CBDT notifies ITR-B to report undisclosed income

The Ministry of Finance has notified the introduction of Form ITR-B, a specialised income tax return form aimed at addressing undisclosed income detected during search or requisition operations conducted on or after September 1, 2024. The notification, issued on April 7, 2025, through the gazette, marks a significant step in streamlining compliance for taxpayers under the block assessment framework.

 

“The return of income required to be furnished by any person under clause (a) of sub-section (1) of section 158BC, relating to any search initiated under section 132 or requisition made under section 132A on or after the 1st day of September, 2024 shall be in the Form ITR-B and be verified in the manner,” a notification by the Central Board of Direct Taxes (CBDT) said.

 

Ritika Nayyar, partner, Singhania & Co. explains who is required to file ITR-B?

 

This form is for those taxpayers who are obligated to disclose previously undisclosed income that was discovered during search or requisition operations initiated under Section 132 or Section 132A of the Income-tax Act, 1961, on or after the 1st day of September 2024. Therefore, those individuals and entities on whom such a search or requisition operation has been conducted on or after September 1, 2024, and who are required to furnish a return of income under clause (a) of sub-section (1) of section 158BC of the Income Tax Act, are mandated to file ITR-B.

 

Specifically, persons whose accounts are subject to audit under section 44AB, companies, political parties and any other person on whom a search or requisition was initiated on or after September 1, 2024, and who needs to file under Section 58BC(1)(a) would be required to file this return. 

 

The standard deadline for filing ITR-B is typically 60 days from the date of the tax notice issued following a search or requisition operation.

 

What are the points to keep in mind while filing ITR-B?

 

The taxpayer must understand that this filing is for block assessment period and also ensure the proper form of filing per the specified persons.

 

The taxpayer must accurately declare all previously undisclosed income that was discovered during the search or requisition. Any omission or misrepresentation can lead to severe penalties. Also, the time limit for filing ITR-B, which is generally 60 days from the date of the tax notice you receive after the search or requisition, must be adhered to.

 

If, at the time of filing ITR-B, the regular return filing due date has not expired and your audits are still pending, you can disclose provisional figures but remember that these must be accurately reflected in your regular income tax return later.

 

Lastly, it is important to exclude any income arising from international or specified domestic transactions under section 158BB(3) from ITR-B, as these will be assessed separately. Adhering to these points will help ensure a smooth and compliant filing of your ITR-B.