In a significant move aimed at streamlining post-search tax disclosures, the Income Tax Department has introduced a new return form – ITR-B. This form is to be used by individuals or entities who wish to disclose undisclosed income unearthed during income tax search or requisition operations conducted on or after September 1, 2024.
As per a recent notification from the Central Board of Direct Taxes (CBDT), the ITR-B form is required to be filed under clause (a) of sub-section (1) of section 158BC of the Income Tax Act. It is specifically linked to searches initiated under section 132 or requisitions made under section 132A on or after the mentioned date. The form must be duly verified as prescribed by the authorities.
According to tax experts, Form ITR-B aims to resolve several procedural ambiguities that existed around block assessments. Unlike conventional ITR forms that require extensive disclosures, ITR-B focuses on limited and specific data relevant to the block assessment period. This targeted approach reduces the compliance burden on taxpayers while ensuring accurate and transparent reporting.
This development marks a step forward in promoting efficiency and clarity in the tax system, especially for those undergoing post-search assessment proceedings.
