Block income tax return ITRB

Dear Sir/Ma'am,

Based on the newly introduced Rule 12AE of the Income-tax Rules (notified via the Income-tax Tenth Amendment Rules, 2025), Form ITR-B is the dedicated return form for Block Assessments under Chapter XIV-B. It is mandatory for any assessee who receives a notice under Section 158BC or Section 158BC r.w.s. 158BD following a search (u/s 132) or requisition (u/s 132A) initiated on or after September 1, 2024.

Here is a practical guide and illustration on how to file it:

1. Manner of Filing & Verification (As per Rule 12AE)

The form must be filed entirely electronically. The verification mode depends on the type of taxpayer:

• Companies, Political Parties, and Assessees liable for Tax Audit (u/s 44AB): Mandatory to file and verify using a Digital Signature Certificate (DSC).

• All Other Taxpayers: Can verify using either a DSC or an Electronic Verification Code (EVC).

2. Understanding the "Block Period" (Illustration)

ITR-B requires you to report income for a "Block Period." This period consists of:

1. The six assessment years preceding the previous year in which the search was conducted.

2. The broken period of the current year from April 1st up to the date of the search/requisition.

• Illustration: Suppose the Income Tax Department initiated a search on your premises on October 15, 2024. The "Block Period" you need to report in ITR-B will encompass:

• 6 Preceding Years: FY 2018-19 up to FY 2023-24.

• Broken Period: April 1, 2024, to October 14, 2024. In the ITR-B form, you will need to provide a year-wise breakdown of both your previously disclosed income and the new undisclosed income unearthed during this exact block.

3. Step-by-Step Filing Process on the e-Filing Portal

Currently, ITR-B cannot be filed as a regular return under the "File Income Tax Return" tab. You must file it in response to the notice:

• Step 1: Log in to your account on the Income Tax e-Filing portal.

• Step 2: Navigate to the "e-Proceedings" tab.

• Step 3: Locate the proceeding generated for the notice issued u/s 158BC (or 158BD) and click on "Submit Response".

• Step 4: Select the form type as "Block ITR" (ITR-B).

• Step 5: Fill out the respective parts of the form carefully:

  • Part A: General Information (PAN, dates of search authorizations, notice details).

  • Part B: Computation of Total Income (Year-wise breakdown).

  • Part C: Computation of Undisclosed Income (Derived based on seized assets, documents, etc.).

  • Part D & E: Tax Computation and Details of Tax Payments.

• Step 6: Submit and e-Verify using DSC or EVC as applicable to your category.

4. Crucial Points to Keep in Mind

• Strict Timeline: You must file ITR-B within the time limit specified in the 158BC notice (which is typically up to 60 days). Delaying this can attract severe penalties.

• No Revised Return: Under the block assessment scheme, there is no provision to file a revised ITR-B. Ensure the data entered is absolutely accurate and matches the seized annexures.

• Tax Credits: Any claim for tax credit against undisclosed income (other than self-assessment tax paid specifically for the block period) is subject to the strict verification and satisfaction of the Assessing Officer.

Hope this helps clarify the procedure!