CBDT Notifies New ITR-B Form for Tax Search Cases: 2025 Guidelines

The Income Tax Department has recently launched a new income tax return format – ITR-B – specifically intended for particular taxpayer categories. This new form is an element of the government's ongoing initiative to enhance transparency and simplify the return filing process, especially in situations involving search or requisition operations.

What is ITR-B?

ITR-B is a newly introduced income tax return form sanctioned by the Central Board of Direct Taxes (CBDT). It is required for individuals or entities on whom:

• A search has been performed under section 132 of the Income Tax Act, or
• A requisition has been carried out under section 132A, or
• Any other action has commenced under section 153A or section 153C for assessment or reassessment.

This form is part of the compliance structure under section 158BC of the Income Tax Act, 1961, addressing assessments in cases of search and seizure.

Who Should File ITR-B?

The following taxpayers are obligated to submit Form ITR-B:

• Individuals or HUFs (Hindu Undivided Families) involved in a search or requisition operation.
• Companies, partnership firms, or LLPs undergoing actions under sections 132, 132A, 153A, or 153C.
• Taxpayers receiving notices from the Assessing Officer mandating them to file returns under Section 158BC(a).

Note: This form is not meant for regular taxpayers filing under standard conditions. It is specifically intended for instances where income needs to be reported following a search/requisition operation.

The new ITR-B form necessitates thorough disclosure of the following:

• Personal and PAN information of the taxpayer
• Details of income identified during the search/requisition activities
• Breakdown of assets and liabilities
• Undisclosed income or assets
• Taxes paid, including advance tax, TDS, TCS
• Income calculated according to the special provisions of Chapter XIV-B of the Income Tax Act

The form aims to ensure complete transparency regarding any hidden income or assets discovered during departmental actions.

The deadline for submitting ITR-B is usually outlined in the notice issued by the Assessing Officer. Nevertheless, taxpayers are urged to file the return as soon as they receive such a notice, as delays could result in penalties or interest under applicable sections.

Failing to file ITR-B when required may lead to:

• Severe penalties
• Interest obligations
• Prosecution in instances of willful default
• Assessment based on the best judgment according to Section 144

Thus, it is vital to comply promptly upon receiving a search or requisition-related notice.

• ITR-B is NOT a form for voluntary filing; it is applicable solely in exceptional cases involving departmental actions.
• It must be submitted only if a notice is received as per the relevant sections.
• This form is designed to assess and declare undisclosed income or assets revealed during raids.
• Completing this form facilitates the resolution of the case transparently while averting further examination or litigation.

The rollout of Form ITR-B marks a significant advancement toward organized tax compliance in the context of tax evasion investigations. It offers a formal framework for taxpayers to declare income revealed through searches or requisitions and fulfill their legal responsibilities under the Income Tax Act.

If you have received any notice regarding such proceedings, seek assistance from a tax expert immediately to ensure timely and accurate completion of your ITR-B and avoid legal complications.

Receive specialized assistance from reliable tax professionals at myITRonline. Whether it involves a standard ITR or a unique case like ITR-B, we are here to help.