[BREAKING] CBDT notifies New ITR Form ITR-B for Disclosure of Income after Search/Requisition [Read Notification]

The Central Board of Direct Taxes (CBDT) has notified the introduction of a new income tax return form, ITR-B, designed exclusively for disclosure of income discovered during search or requisition operations under sections 132 and 132A of the Income-tax Act, 1961.

Under newly inserted Rule 12AE of the Income-tax Rules, 1962, the ITR-B form must be furnished by individuals and entities where a search or requisition was initiated on or after the aforementioned date. This form will be applicable in cases governed by clause (a) of sub-section (1) of section 158BC, relating to block assessment procedures.

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Filing Mandate and Modes

The CBDT has outlined specific modalities for furnishing the new ITR-B:

-Mandatory electronic filing with digital signature is required for:

  - Persons whose accounts are subject to audit under section 44AB

  - Companies

  - Political parties

-All other taxpayers may file either through:

  - Digital signature, or

  - Electronic verification code (EVC)

The Principal Director-General (Systems) will oversee the implementation of secure data protocols, verification standards, and archival mechanisms for ITR-B filings.

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Coverage Period: The “Block Period”

The ITR-B form will capture income across a block assessment period, consisting of:

-AY Y6 to Y1: Six assessment years prior to the year in which the search/requisition was initiated.

-AY Y0: The partial or full assessment year in which the search occurred.

-AY Y+1: Applicable if the final execution of search or requisition authorisation extended into the next financial year.

Provisional Disclosure Provision

In instances where due dates under section 139(1) for filing returns have not expired and audits are pending, provisional figures based on standard books of accounts must be disclosed. These will not be treated as regular returns but must later be integrated into standard return filings.

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Important Exclusion

Income from international or specified domestic transactions, as stipulated under section 158BB(3), must not be included in the ITR-B. Such income is to be assessed separately under the regular assessment provisions.

To Read the full text of the Notification CLICK HERE

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