Central Board of Direct Taxes (CBDT) has introduced Form ITR-B for filing returns related to block assessments under Section 158BC(a) of the Income Tax Act, 1961. This form applies to cases involving search and seizure actions initiated on or after 1st September 2024 under Sections 132 or 132A. The amendment, notified via Notification No. 30/2025 and effective retrospectively from 1st September 2024, inserts Rule 12AE into the Income-tax Rules, 1962. Form ITR-B must be used to declare income for the block assessment period and submitted electronically, either via digital signature or electronic verification code, depending on the type of taxpayer. Entities such as companies, political parties, and those audited under Section 44AB are required to file using digital signatures. The Principal Director-General of Income-tax (Systems) is responsible for establishing procedures and data security standards for the filing process. The form also outlines rules for claiming tax credits against undisclosed income and includes verification requirements. Specific instructions clarify how to report income for assessment years within the block period and stress the provisional nature of figures submitted when the relevant assessment year has not yet reached its return due date. The introduction of ITR-B formalizes the process for filing block assessment returns in search and seizure cases, aiming to ensure compliance with Chapter XIV-B of the Act.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 30/2025-Income Tax | Dated: 7th April, 2025
G.S.R. 221(E).–In exercise of the powers conferred by section 158BC read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Tenth Amendment) Rules, 2025.
(2) They shall be deemed to have come into force on the 1st day of September, 2024.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), after rule 12AD, the following rule shall be inserted, namely: ––
“12AE. Return of income under section 158BC.– (1) 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 indicated therein.
(2) The return of income referred to in sub-rule (1) shall be furnished by a person, mentioned in column (2) of the Table below in the manner specified in column (3) thereof: ––
TABLE
| Sl. No. | Person | Manner of furnishing return of income |
| (1) | (2) | (3) |
| 1. | (a) person whose accounts are required to be audited under section 44AB of the Act;
(b) Company; (c) Political party. |
Electronically under digital signature. |
| 2. | Any person other than a person mentioned in column (2) of Sl. No. (1) above. | (A) Electronically under digital signature;
(B) Transmitting the data electronically in the return under electronic verification code. |
Explanation.- For the purposes of this sub-rule, “electronic verification code” shall have the same meaning as assigned to it in Explanation to sub-rule (2) of rule 12AC.
(3) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the return in the manners specified in column (3) of the Table.
(4) In a case where claim of credit of the tax payments is made against undisclosed income of the block period other than by way of self-assessment tax for the block period, claim of such credits and the allowability thereof shall be subject to the verification by and satisfaction of, the Assessing Officer.”
3. In the said rules, in Appendix-II, after FORM ITR-U, the following FORM ITR-B shall be inserted, namely: –
VERIFICATION
| Stamp Receipt No., Seal, Date & Sign of Receiving Official |
I, son/ daughter of solemnly declare that to the best of my knowledge and belief, the information given in the return is correct and complete and is in accordance with the provisions of the Income-tax Act, 1961. I further declare that I am making this return in my capacity as___________ (drop down to be provided in e-filing utility) and I am also competent to make this return and verify it. I am holding permanent account number__________ .
Date: Signature: |
–
| If the return has been prepared by a Tax Return Preparer (TRP) give further details below: | ||||||||
| Name of TRP | Counter Signature of TRP | |||||||
| If TRP is entitled for any reimbursement from the Government, amount thereof | ||||||||
Notes:
Note: 1
Assessment Year Y6 to Y1:
Six assessment years preceding the assessment year relevant to the previous year in which search was initiated under section 132 or any requisition was made under section 132A.
Assessment Year Y0:
♦ Where search/requisition is concluded in the same year in which it was initiated: Y0 is the period in the assessment year relevant to the previous year which will be from the 1st April of the year in which search/requisition initiated upto the date of execution of the last of the authorisations for search or requisition.
♦ Where the date of execution of the last of the authorisations for search or requisition falls in a previous year subsequent to the year in which the search or requisition was initiated: Y0 is the complete assessment year relevant to the previous year starting from the 1st April of the year in which search/requisition is initiated and upto 31st March of that year.
Assessment Year Y+1 (To be filled in case the date of execution of the last of the authorisations for search or requisition falls in a previous year subsequent to the year in which the search or requisition was initiated): Y+1 is the period in the assessment year relevant to the previous year which will be from the 1st April of the year in which last of authorisations of search/requisition was executed and ending with the date of last of authorisations of search/requisition.
Note: 2
Refer section 158BB(1A)(c)(i): For the purposes for filing details of the assessment year Y1 where the relevant previous year has ended and the due date for furnishing the return under section 139(1) for such year has not expired, where accounts are not audited (if they are required to be audited), provisional figures are required to be furnished based on the books of account maintained in normal course. This shall not be considered as a return under section 139(1) for the relevant assessment year. Further, this income is required to be included in the return of income furnished under section 139 for the relevant assessment year.
Note: 3
Refer section 158BB(1A)(c)(i): For the purposes for filing details of the assessment year Y0 (where Y0 is a complete year) where the relevant previous year has ended and the due date for furnishing the return under section 139(1) for such year has not expired, provisional figures are required to be furnished based on the books of account maintained in normal course. This shall not be considered as a return under section 139(1) for the relevant assessment year. Further, this income is required to be included in the return of income furnished under section 139 for the relevant assessment year.
Note: 4
Refer section 158BB(3): In terms of the provisions of this section, any undisclosed income in respect of any international transaction or specified domestic transaction pertaining to the part previous year comprising in the block period is required to be assessed under provisions other than the applicable provisions for block assessment. Accordingly, any undisclosed income on this account is not required to be submitted as part of the block return.”.
[F. No. 370142/29/2024-TPL]
SURBENDU THAKUR, Under Secy., Tax Policy and Legislation
Note:—The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number S.O. 969 (E), dated the 26th March, 1962 and was last amended vide number GSR 217(E), dated the 03rd April, 2025.
Explanatory Memorandum: – It is hereby certified that no person shall be adversely affected by giving retrospective effect to these rules.
