ITR-B Form Explained AY 2026-27: FAQs on the New Block Assessment Return

ITR-B is a brand-new income tax return form, notified on April 7, 2025, for taxpayers who face a search or requisition initiated on or after September 1, 2024. It is filed under Section 158BC of the Income Tax Act 1961. India’s income tax department detected a combined Rs 77,871.44 crore in undisclosed income through surveys across FY 2022-23 to FY 2024-25 alone.

Key Takeaways

  • ITR-B is notified under CBDT Notification No. 30/2025 (April 7, 2025) as Rule 12AE. Triggered by a search under Section 132 or requisition under Section 132A on or after September 1, 2024.
  • One consolidated ITR-B covers the entire block period (up to 6 preceding assessment years plus the broken period).
  • Tax rate is a flat 60% on total undisclosed income under Section 113 read with Section 158BA(7), with surcharge and 4% cess making the effective rate approximately 78%.
  • Deadline: 60 days from the date of receipt of the Section 158BC notice.
  • ITR-B cannot be revised after filing. No statutory revision mechanism exists for block returns.
  • For searches before September 1, 2024: Section 153A applies, not ITR-B.

What is ITR-B and what is its statutory basis?

ITR-B draws its authority from Chapter XIV-B of the Income Tax Act 1961, specifically Sections 158B through 158BI, reintroduced by the Finance (No. 2) Act, 2024 with effect from September 1, 2024. The filing obligation is created by Section 158BC(1)(a), which requires the searched person to file a return in the prescribed form within the prescribed time upon receiving notice from the Assessing Officer.

CBDT fulfilled the “prescribed form” requirement through Notification No. 30/2025 dated April 7, 2025, inserting Rule 12AE. In FY 2024-25 alone, the department conducted 465 survey operations detecting Rs 30,444.17 crore in undisclosed income.

Why did the government reintroduce Chapter XIV-B?

The earlier block assessment regime was abolished in 2003, with Section 153A replacing it. Under Section 153A, the AO would issue notices for six or ten assessment years separately, creating multiple assessments, multiple appeals, and significant administrative overhead. The reintroduction of block assessment through a single consolidated ITR-B simplifies collection and reduces litigation. One ITR-B covers everything, and the AO issues one block assessment order rather than multiple year-by-year orders.

What counts as “undisclosed income” for ITR-B purposes?

Section 158B defines undisclosed income through two limbs:

  • Limb 1: Money, bullion, jewellery, virtual digital assets, or other valuables found during the search that represent income not previously disclosed in any return
  • Limb 2: Expenses, deductions, or allowances claimed in past returns that are found to be incorrect based on seized material

The second limb is significant — a deduction previously claimed can become part of the undisclosed income block if seized documents reveal the claim was fraudulent or inflated. That income then gets taxed at 60%, not normal rates.

Who must file ITR-B?

The searched person — the individual, company, firm, or other entity against whom the search or requisition is conducted — is the primary filer. Section 158BC also creates an obligation for “other persons” whose books, documents, or assets are found during the search of another person. The AO may issue a Section 158BC notice to such persons as well, requiring them to file ITR-B for income attributable to them discovered during the search.

What is the block period covered by ITR-B?

The block period consists of:

  • Up to 6 assessment years preceding the year in which the search is conducted, AND
  • The broken period — from April 1 of the current financial year up to the date of the search

All undisclosed income across this entire period is reported in a single ITR-B and taxed at the flat 60% rate.

The no-revision rule — the most critical practitioner detail

ITR-B cannot be revised after filing. Unlike regular ITR forms where you can file a revised return until December 31 of the relevant AY, there is no statutory revision mechanism for block returns under Chapter XIV-B. This means every figure in the ITR-B must be finalised before submission. Any error discovered after filing can only be addressed through appellate proceedings or rectification under Section 154 — both of which are far more time-consuming and uncertain than a simple revised return.

ITR-B vs Section 153A: Which applies to your search?

  • Search initiated on or after September 1, 2024: ITR-B (Chapter XIV-B) applies
  • Search initiated before September 1, 2024: Section 153A applies; regular ITR forms (ITR-3, ITR-6, etc.) are filed for each of the 6 or 10 years
  • No retroactive application: ITR-B does not apply to searches that were initiated before September 1, 2024, even if the notice is received after that date

Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Search and block assessment matters are highly specialised — engage a qualified Chartered Accountant and tax advocate immediately upon receipt of a Section 158BC notice. All figures and dates are based on information available as of May 2026.