The Income Tax Department has launched a new form called ITR-B for a special group of taxpayers. This form is not like the regular ITR-1 or ITR-2 that most salaried individuals or business owners file every year. The ITR-B form is meant only for those people who have gone through a search or seizure operation by the Income Tax Department on or after 1st September 2024.
This form was officially released by the Finance Ministry on 7th April 2025, through a Gazette notification. It will be used for the Financial Year 2025-26, which is also called Assessment Year 2026-27.
Who Has to File ITR-B Form?
Only a specific group of taxpayers will be required to file this form. It is mandatory for individuals or entities whose undisclosed income has been found during a search or seizure under:
- Section 132 of the Income Tax Act (Search and seizure)
- Section 132A of the Income Tax Act (Requisition of documents or assets)
So, if the Income Tax Department has carried out a raid on your home, office, or business premises, and found income that was not declared in previous years, then you will have to file the ITR-B form.
What is Different About ITR-B?
Unlike the standard ITR forms like ITR-1, ITR-2, or ITR-3 which are filed every year, ITR-B is used for block assessment. This means it covers multiple years in one go.
For example, if a raid in 2025 reveals that you didn’t report income in earlier years, you have to disclose that income using ITR-B. The block period usually includes up to 6 previous assessment years from the year of search.
So if your premises were searched in FY 2025-26, the department may ask you to report income from as far back as FY 2019-20.
When to File the ITR-B Form?
Filing of the ITR-B form is not open to everyone anytime. It comes into action only after the Income Tax Department sends you a notice under Section 158BC of the Income Tax Act.
Once you get the notice, you will have exactly 60 days from the date of issue to fill and submit the ITR-B form. The form should be filled in the prescribed format and also verified properly as per the rules.
What to Declare in the ITR-B Form?
The form is designed to collect complete and transparent information about your unreported income. You have to declare:
- Cash found during the search
- Gold or jewellery in your possession
- Real estate or property bought but not declared
- Shares, mutual funds or other financial investments
- Virtual Digital Assets (like cryptocurrency)
- Any other type of valuable asset or source of income which was not disclosed earlier
In short, if the search reveals any income or assets that were hidden from tax authorities, you must mention them in ITR-B. Each detail has to be linked with the specific Assessment Year it relates to.
TDS and TCS Claims Allowed But With Conditions
Just like regular ITR forms, taxpayers can also claim credit for TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) in ITR-B. However, there’s a special condition:
Your claim will only be accepted if the tax officer is satisfied with the documents and details you provide. That means, if you are claiming that some tax was already paid or deducted, you must show proper proof for it.
So it’s very important to collect all related documents like Form 26AS, TDS certificates, or bank statements before filing.
Format of ITR-B Form
The ITR-B form has different sections for income reporting, depending on the nature and source of income. Some of the key sections include:
- Details of total income discovered in the search
- Year-wise breakdown of income
- Asset-wise disclosure (gold, cash, property, shares, etc.)
- Deductions or exemptions (if applicable)
- TDS and TCS details
You will also have to provide supporting evidence like bills, sale deeds, valuation reports, and investment proofs.
Why This New Form Matters?
The ITR-B form is a part of the government’s move towards digitization and better tax transparency. In earlier years, disclosures after raids were made in handwritten or offline forms, making the process slow and error-prone.
With ITR-B now going digital, the Income Tax Department can process such cases faster, keep a proper record, and improve compliance.
Also, because it is filed only after a raid or search, this form becomes a very crucial part of the legal process for people whose financial matters are under scrutiny.
Common Mistakes to Avoid While Filing ITR-B
- Delaying the filing: Remember, there is a strict 60-day window.
- Hiding income again: If any part of the hidden income is left undeclared again, there can be legal consequences.
- Wrong year selection: Always link the undisclosed income with the correct financial year.
- Inaccurate asset value: Provide accurate valuation of jewellery, gold, digital assets, etc., or get them professionally valued.
- Missing verification: Failing to verify the form properly as per official instructions can lead to rejection.
Digital Filing and Verification
The Income Tax Department has taken steps to make the ITR-B form completely digital. It will be available for filing online on the income tax portal. Verification can also be done using:
- Aadhaar-based OTP
- Net banking
- Digital Signature Certificate (DSC)
This makes the whole process easier and also aligns with the government’s goal of a paperless tax administration.
Final Note for Taxpayers
If you or your business has been subject to a search or seizure operation by the tax department on or after 1st September 2024, then keep in mind that the ITR-B form is now mandatory for reporting hidden income. Take help from a tax expert or CA if needed, as mistakes in this form can lead to serious consequences.
Being transparent and on time is the only way forward in such cases.
