ITR-B Form - How to File, Deadline, and Eligibility

ITR-B Form is a specific income tax return that is filed when unreported income is discovered in the course of a search or requisition made by the Income Tax Department. It is utilized in block period assessments, involving several previous years in which income wasn't reported previously.

This form enables taxpayers to report all such income in one single place and satisfy tax regulations following a search operation. As against normal ITR forms, ITR-B is exclusively used in search cases under Chapter XIV-B of the Income-tax Act.

Any taxpayer, like companies, political parties, assessee liable to audit under Section 44AB, or any others, who is searched or requisitioned by the Income Tax Department on or after September 1, 2024, has to furnish Form ITR-B electronically.

Who is Required to File ITR-B?

• Domestic and foreign companies
• Political parties
• Individuals or entities liable to audit under Section 44AB
• Any other individuals in a search or requisition case

What are the Components of ITR Form?

Form ITR-B is divided into various sections, each recording particular information pertaining to the taxpayer and the unreported income discovered through a search or requisition. Here are the parts in which the ITR Form is divided -

• Part A – General Information comprises general information such as the PAN of the taxpayer, name, contact details, nature of job, dates of the search operation, the applicable block period, and details of earlier filed returns.
• Part B – Computation of Income includes income reported under different heads such as house property, salary, capital gains, business or profession, and others, as per normal income tax computation.
• Part C – Computation of Undisclosed Income calls for a thorough break-up of undisclosed income. It should be reported year-wise, source-wise, and under the respective income heads.
• Part D – Tax Payable determines the tax due on the unreported income, with any surcharge, cess, and interest payable applicable thereto.
• Part E – Tax Payments and Credit Claims records taxes paid in advance like TDS, advance tax, self-assessment tax, and other credit amounts eligible to be offset against the liability.
• Part F – Declaration and Verification is where the taxpayer verifies that the information given in the form is correct through a signed declaration.

How to File Form ITR-B?

The ITR-B form has to be filed online, and the filing method is according to the nature of the taxpayer.

For businesses, political parties, and individuals whose accounts are audited under Section 44AB of the Income Tax Act, electronic filing is to be done through a Digital Signature Certificate (DSC). For everyone else, there are two alternatives: they can either file the return electronically through a DSC or file it electronically and authenticate through an Electronic Verification Code (EVC).

Here's a brief overview of the ITR-B filing process:

• Log in to the e-filing portal of the Income Tax Department.
• Choose "ITR-B" as the return form type for search or requisition cases.
• Provide all the mandatory details, such as:
  • General information
  • Details of income
  • Information on undisclosed income
  • Tax payable and payments
  • Upload documents, if needed.
• Select the verification mode:
  • For companies, political parties, and audited individuals under Section 44AB – submit using Digital Signature Certificate (DSC).
  • For others, select DSC or Electronic Verification Code (EVC).
• Complete the form electronically via the portal.
• Save and download the acknowledgment for reference.

What is the Deadline for Filing Form ITR-B?

ITR-B should be filed within 60 days of receiving the tax notice, which is given after the search and requisition. ITR-B provides the assessee with an opportunity to report all their unreported income in one place.

Important Points for Filing Form ITR-B

Note 01: Years of Assessment Covered (Y6 to Y1) and Definition of Y0
ITR-B can be submitted for a maximum of six years of assessment (Y6 to Y1) prior to the concerned assessment year in which the search or requisition was conducted. The time period referred to as "Y0" is the duration between the initiation and end of the search or requisition. If the whole process is finished in the same financial year, Y0 encompasses the period from April 1 of the year to the end date of authorization. But if the process runs into the next year, Y0 encompasses the entire year from April 1 of the starting year to March 31 of the subsequent year.

Note 02 & Note 03: Section 158BB(1A)(c)(i)
When submitting a return for Year 1 or Year 0, where the financial year is over but the deadline for submitting the normal return under Section 139(1) has not lapsed, then any provisional return submitted by an assessee liable for tax audit shall not be considered a valid return under Section 139(1). Such provisional returns are excluded from block assessment purposes.

Note 04: Section 158BB(3)
Unremitted income resulting from cross-border or specified domestic transactions within the relevant portion of the block period is not to be included in the block return. Such income should instead be determined separately under transfer pricing or other relevant provisions, and not under block assessment provisions.

Have you been searched or requisitioned by the Income Tax Department for any unreported income? If yes, don’t worry! You can simply file ITR-B and report all the unreported income there.

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