Introduction to ITR-B Form Filing
In a significant update for taxpayers, the Income Tax Department has introduced the ITR-B form, which must be filed by individuals subject to search or requisition operations under sections 132 and 132A of the Income Tax Act. This new requirement aims to ensure proper declaration of previously undisclosed income discovered during these operations. Effective from FY 2025-26 (Assessment Year 2026-27), the filing of this form is mandatory for taxpayers whose cases are related to such searches and requisitions initiated on or after September 1, 2024.
In this guide, we’ll walk you through everything you need to know about filing the ITR-B form—who needs to file it, key deadlines, and the essential instructions for successful submission.
Who Needs to File the ITR-B Form?
According to the latest gazetted notification by the Ministry of Finance, the ITR-B form must be filed by taxpayers who are subject to search or requisition operations under sections 132 or 132A. This includes individuals who have undisclosed income discovered during these operations. Specifically, the requirement applies to the following scenarios:
- Taxpayers Under Search or Requisition: If a search has been initiated or a requisition has been made under Section 132 or 132A, taxpayers must file this return.
- Undisclosed Income: The form must be used to report any previously undisclosed income found during such operations.
The ITR-B form must be filed for block assessment years. This means taxpayers will need to disclose undisclosed income for multiple years, not just the year the search or requisition was initiated.
Key Deadlines for Filing ITR-B
The ITR-B filing deadline is typically set at 60 days from the date of the tax notice issued after the completion of a search or requisition operation. It’s crucial to adhere to this timeline to avoid penalties or complications with your filing.
Important Notes for ITR-B Form Filing
The Ministry of Finance has provided several important notes regarding the filing process for ITR-B. Here’s a breakdown of the key notes that every taxpayer should be aware of:
Note 1: Assessment Year Calculation
- Assessment Years Y6 to Y1: These are the six assessment years preceding the assessment year relevant to the previous year in which the search or requisition was initiated.
- Assessment Year Y0: If the search or requisition is concluded in the same year it was initiated, Y0 refers to the full assessment year starting from April 1 of the search/requisition year up to the last authorization for search or requisition.
- Assessment Year Y+1: This applies if the execution of the last authorization occurs in a subsequent year. It covers the period starting from April 1 of the year in which the last authorization was executed until the end of the same year.
Note 2: Provisional Figures for Non-Audited Accounts
For assessment year Y1, if the due date for filing the return under Section 139(1) has not expired, taxpayers are required to provide provisional figures based on the books of account maintained. These provisional figures are needed for cases where the accounts are not yet audited (if they are required to be audited). This provisional filing does not count as the return under Section 139(1).
Note 3: Provisional Figures for Assessment Year Y0
Similarly, for assessment year Y0, if the relevant previous year has ended and the filing deadline under Section 139(1) has not expired, provisional figures based on normal books of account are required to be filed.
Note 4: International Transactions & Specified Domestic Transactions
Any undisclosed income related to international or specified domestic transactions within the block period is to be assessed under provisions other than block assessment. This income does not need to be included in the block return.
Filing Process for ITR-B Form
To file the ITR-B form, follow these steps:
- Obtain the Form: The ITR-B form is available on the Income Tax Department’s e-filing portal.
- Fill in the Details: Enter the necessary details, including undisclosed income for each assessment year in the block.
- Verify the Information: The form must be verified as per the method outlined in the instructions. This can be done electronically using the available verification options.
- Submit the Form: Once the form is completed and verified, submit it through the e-filing portal.
Conclusion
The introduction of the ITR-B form is a crucial development for taxpayers subject to search or requisition operations under the Income Tax Act. It is important to understand the filing process, deadlines, and the specific details required for the form’s completion. By following the guidelines carefully, taxpayers can ensure compliance and avoid any potential issues during the assessment process.
For more detailed information or personalized assistance, consider consulting with a tax professional to guide you through the filing of the ITR-B form for FY 2025-26.
Summary of Key Points
| Key Aspect | Details |
|---|---|
| Who Needs to File | Taxpayers subjected to search or requisition operations under Sections 132 & 132A. |
| Filing Deadline | 60 days from the date of the tax notice post-search/requisition operation. |
| Assessment Years Covered | Six years preceding the assessment year of the search/requisition. |
| Provisional Filing | Provisional figures required for non-audited accounts or incomplete returns. |
| International Transactions | Undisclosed income from international/domestic transactions excluded from block assessment. |
By understanding these critical details, you can stay compliant with the latest tax regulations and ensure a smooth filing process for the ITR-B form.
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