The Ministry of Finance has issued Notification No. 30/2025 dated April 7, 2025, announcing a significant update under the Income-tax Act, 1961. The Central Board of Direct Taxes (CBDT) has introduced a new Form ITR-B to be used for filing income tax returns for block assessments in cases arising out of search and seizure operations initiated on or after September 1, 2024.
The changes have been notified under the newly inserted Rule 12AE in the Income-tax Rules, 1962, pursuant to Section 158BC of the Income-tax Act. The ITR-B form is applicable for persons subjected to search under Section 132 or requisition under Section 132A, aligning with the provisions of Chapter XIV-B of the Act.
Key Highlights of the Notification
-
Effective Date: The rules are deemed to be in force from September 1, 2024.
-
Applicability: Any person who is required to file a return of income under Section 158BC(1)(a) following a search or requisition.
-
Form Introduced: A new return form, ITR-B, has been introduced for block period assessments.
-
Mode of Filing:
-
For companies, political parties, and persons requiring audit under Section 44AB: Return must be filed electronically under digital signature.
-
For all other taxpayers: Return can be filed either electronically under digital signature or via electronic verification code (EVC).
-
-
Compliance & Data Security: The Principal Director-General or Director-General of Income-tax (Systems) is responsible for specifying secure procedures, formats, and data transmission standards.
-
Credit Claim Restriction: Claims for credit against undisclosed income (other than self-assessment tax) will be subject to verification and approval by the Assessing Officer.
This reform aims to streamline the filing process for block assessments following search actions, ensuring greater accountability and digital compliance. The introduction of Form ITR-B marks a crucial administrative step in improving transparency in high-value undisclosed income cases.
Taxpayers and tax professionals dealing with search and seizure cases must now ensure compliance using Form ITR-B, which captures extensive details regarding income, assets, expenditures, and tax credits over the entire block assessment period.
Official copy of the notification has been attached
CAclubindia
