CBDT Notifies ITR-B - Income Tax Return for Block Assessment (2025)

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CBDT has introduced Form ITR-B on 7th April 2025 through Notification No.07/2025 for filing returns related to Block Assessment through Income – Tax (Tenth Amendment) Rules 2025.

What is ITR-B

ITR-B is a special income tax return which is used to address the Undisclosed income discovered by search initiated under section 132 or requisition made under section 132A after 1st day of September 2024. This form is introduced under section 158BC(1)(a) r.w.rule 12AE of the Income Tax Rules,1962.

What is Section 158BC?

Section 158BC of the Income Tax Act lays down the procedure for dealing in assessment for cases of search initiated u/s 132 or books of accounts, other documents or assets requisitioned u/s 132A.

The provisions of Section 158BC of the Income Tax Act are reproduced hereunder for your ready reference:

158BC. (1) Where any search has been initiated under section 132 or books of account, other documents or assets are requisitioned under section 132A, in the case of any person, then,—

(a) the Assessing Officer shall, in respect of search initiated, or books of account or other documents or any assets requisitioned, on or after the 1st day of September, 2024, issue a notice to such person, requiring him to furnish within such period, not exceeding a period of sixty days, as may be specified in the notice, a return in the form and verified in the manner, as may be prescribed, setting forth his total income, including the undisclosed income, for the block period:

Provided that such return shall be considered as if it was a return furnished under the provisions of section 139 and notice under sub-section (2) of section 143 shall thereafter be issued:

Provided further that any return of income, required to be furnished by an assessee under this section and furnished beyond the period allowed in the notice shall not be deemed to be a return under section 139:

Provided also that no notice under section 148 is required to be issued for the purpose of proceeding under this Chapter:

Provided also that a person who has furnished a return under this clause shall not be entitled to furnish a revised return;

(b) the Assessing Officer shall proceed to determine the total income including the undisclosed income of the block period in the manner laid down in section 158BB and the provisions of section 142, sub-sections (2) and (3) of section 143, section 144, section 145, section 145A and section 145B shall, so far as may be, apply;

(c) the Assessing Officer, on determination of the total income of the block period in accordance with this Chapter, shall pass an order of assessment or reassessment and determine the tax payable by him on the basis of such assessment or reassessment:

Provided that nothing in the provisions of section 144C shall apply in respect of such order:

Provided further that where the order of assessment or reassessment is made in pursuance of section 158BD, the block period for such assessment or reassessment shall be the same as that determined in respect of the person in whose case search was made under section 132, or whose books of account or other documents or any assets were requisitioned under section 132A, and proceedings under section 158BD were initiated due to such search or requisition, as the case may be;

(d) the assets seized under section 132 or requisitioned under section 132A shall be dealt with in accordance with the provisions of section 132B.

(2) The provisions of sub-section (1) of section 143 shall not apply to the return furnished under this section.

(3) The Assessing Officer, before issuance of notice under clause (a) of sub-section (1), shall take prior approval of the Additional Commissioner or the Additional Director or the Joint Commissioner or the Joint Director, as the case may be.

Rule 12AE

In the Income Tax Rules , 1962, after Rule 12AD, the following rule, Rule 12AE has been introduced. Rule 12AE has been inserted by the Tenth Amendment Rules,2025 with effect from 1st September 2024.

Rule 12AE of the Income Tax Rules 1962 is reproduced hereunder for your reference:

12AE. (1) The return of income required to be furnished by any person under clause (a) of sub-section (1) of section 158BC, relating to any search initiated under section 132 or requisition made under section 132A on or after the 1^st day of September, 2024 shall be in the Form ITR-B and be verified in the manner indicated therein.

(2) The return of income referred to in sub-rule (1) shall be furnished by a person, mentioned in column (2) of the Table below in the manner specified in column (3) thereof: —

*Sl. No.*	*Person*	*Manner of furnishing return of income*
(1)	(2)	(3)
1.	(a) person whose accounts are required to be audited under section 44AB of the Act;(b) Company;(c) Political party.	Electronically under digital signature.
2.	Any person other than a person mentioned in column (2) of Sl. No. (1) above.	(A) Electronically under digital signature;(B) Transmitting the data electronically in the return under electronic verification code.

Explanation.- For the purposes of this sub-rule, “electronic verification code” shall have the same meaning as assigned to it in Explanation to sub-rule (2) of rule 12AC.

(3) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the return in the manners specified in column (3) of the Table.

(4) In a case where claim of credit of the tax payments is made against undisclosed income of the block period other than by way of self-assessment tax for the block period, claim of such credits and the allowability thereof shall be subject to the verification by and satisfaction of, the Assessing Officer.]

The official copy of the notification and Form ITR-B can be download from here

notification-no-30-2025