ITR-B Form: Filing Income Tax Returns for Undisclosed Income

Introduction

What is the ITR-B Form?

The ITR-B Form is a specialized income tax return used to report undisclosed income uncovered during search or requisition proceedings conducted by the Income Tax Department. It is applicable for block period assessments, which cover multiple prior years where income was not previously declared. Designed specifically for such cases under Chapter XIV-B of the Income-tax Act, this form enables taxpayers to consolidate and disclose all unreported income in a structured manner, ensuring compliance following a search operation. Unlike standard ITR forms, ITR-B is exclusively used for income discovered during these enforcement actions.

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Who Can File ITR-B?

The ITR-B form is specifically intended for taxpayers who need to report undisclosed income uncovered during search or requisition proceedings. According to the latest notification, the following categories of persons are eligible (or required) to file ITR-B:

Persons Subject to Audit under Section 44AB:
This includes individuals, firms, or entities whose accounts are required to be audited under Section 44AB of the Income Tax Act.
Companies:
All companies—whether domestic or foreign—must file ITR-B if they have unreported income discovered during a search operation.
Political Parties:
Political parties are also required to use ITR-B to declare any previously undisclosed income identified during searches.
Any Other Person:
Any individual or entity subjected to a search or requisition on or after 1st September 2024 is obligated to file ITR-B to disclose the findings

Structure of the ITR-B Form

The ITR-B form is detailed and segmented into multiple parts and schedules to ensure comprehensive reporting of undisclosed income. Here’s a breakdown of its key components:
- Part A – General Information
  Includes basic details such as PAN, name, contact information, nature of employment, dates of search, block period covered, and previously filed returns.
- Part B – Computation of Income
  Contains income from various heads including salary, house property, business/profession, capital gains, and other sources.
- Part C – Computation of Undisclosed Income
  Requires year-wise, source-wise, and head-wise classification of undisclosed income found during the search.
- Part D – Tax Payable
  Calculates total tax liability, including income tax, surcharge, health and education cess, and interest on delayed payments.
- Part E – Tax Payments and Credits
  Captures details of taxes already paid, including TDS, advance tax, self-assessment tax, and any other eligible tax credits.
- Verification and Declaration
  A mandatory declaration confirming that all information provided is true and complete, signed by the taxpayer.

How to File the ITR-B Form

The filing process varies depending on the category of the taxpayer, as outlined by the Income Tax Department:
- For Companies, Political Parties, and Audited Persons (under Section 44AB):
  The return must be filed electronically using a Digital Signature Certificate (DSC).
- For All Other Taxpayers:
  Two options are available for electronic submission:
  - Option 1: File electronically using a Digital Signature Certificate (DSC)
  - Option 2: File electronically and verify using an Electronic Verification Code (EVC)
    Filing Process for ITR-B Form
    Follow these steps to file the ITR-B form for disclosing undisclosed income:
    1. Log in to the Income Tax Department’s e-filing portal.
    2. Select the ITR-B form as the applicable return type.
    3. Complete all relevant sections, including disclosures of undisclosed income and any required supporting documents.
    4. Submit the form electronically, using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC), depending on your taxpayer category.
    5. Download and retain the acknowledgment for your records and future compliance needs.

Can Tax Credits Be Claimed?

Yes, taxpayers can claim tax credits against the liability arising from undisclosed income reported under the ITR-B form for the block assessment period. However, self-assessment tax paid for the block period is not eligible for such credit claims. Importantly, tax credit claims are not automatically allowed—they are subject to review and approval by the Assessing Officer. Therefore, it is essential to maintain proper documentation and supporting evidence for any tax payments being claimed to facilitate a smooth verification process.

Key Takeaways

New Rule Introduced: Rule 12AE has been added to the Income-tax Rules, 1962, to govern the filing of ITR-B in block assessment cases.
Purpose: The ITR-B form is designed exclusively for disclosing undisclosed income discovered during search or requisition proceedings.
Applicability: Filing ITR-B is mandatory where a search (u/s 132) or requisition (u/s 132A) is conducted on or after 1st September 2024.
E-Filing Requirement: The form must be filed electronically, using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Claiming Tax Credits: Tax credits, other than self-assessment tax, may be claimed but are subject to verification and approval by the tax authority

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About the Author

Muskan
Muskan is our expert content writer who specialises in business registration, tax regulations, trademark laws, and company compliance. His insightful articles deliver clear and actionable advice, helping businesses easily navigate and overcome complex legal and regulatory challenges

June 26, 2025