CBDT Introduces Form ITR-B for Search & Seizure Cases
The Central Board of Direct Taxes (CBDT) has issued Notification No. 97/2026 dated 25 July 2026, introducing Form ITR-B under the Income-tax Rules, 2026.
The newly notified form is meant for filing Block Returns in cases involving search and seizure or requisition proceedings under the Income-tax Act, 2025. The notification also incorporates transitional references to the Income-tax Act, 1961 wherever applicable.
What is Form ITR-B?
Form ITR-B is a special return form to be filed by taxpayers whose cases are covered under the block assessment provisions following a search or requisition by the Income Tax Department.
Unlike regular Income Tax Returns, the form is specifically designed to report undisclosed income identified during the block period and compute the tax payable on such income.
Key Features of the New ITR-B
The newly prescribed form captures comprehensive details, including:
- Particulars of the search or requisition.
- Return filing details for each tax year covered in the block period.
- Details of pending assessments or reassessments.
- Break-up of undisclosed income under different heads such as salary, business income, capital gains, house property and income from other sources.
- Separate disclosure of international transactions and specified domestic transactions, wherever applicable.
- Computation of tax, surcharge, interest and cess on undisclosed income.
- Details of taxes already paid, including self-assessment tax, advance tax, TDS and TCS credits.
Tax on Undisclosed Income
The form provides for computation of tax on undisclosed income of the block period. It also requires disclosure of:
- Tax payable.
- Surcharge, wherever applicable.
- Health & Education Cess.
- Interest liability.
- Credit for taxes already paid.
Why This Notification Matters
The introduction of ITR-B standardises the return filing process for block assessment cases under the new Income-tax regime. It provides a structured reporting format for taxpayers covered under search proceedings while ensuring consistency in tax computation and disclosure requirements.
The notification is particularly relevant for:
- Taxpayers facing search or requisition proceedings.
- Chartered Accountants.
- Tax Consultants.
- Litigation and Tax Advisory Professionals.
- Businesses involved in complex tax assessments.
Effective Date
The amendment comes into force from the date of its publication in the Official Gazette, i.e., 25 July 2026. The notification also clarifies that no person is adversely affected by its retrospective operation.
Conclusion
Notification No. 97/2026 marks an important procedural development under the Income-tax Rules, 2026 by prescribing Form ITR-B for block assessment proceedings. Taxpayers and professionals dealing with search assessments should familiarize themselves with the new reporting requirements to ensure accurate compliance.
Official Notification
CBDT Notification No. 97/2026 dated 25 July 2026 – Introduction of Form ITR-B for Block Assessment under the Income-tax Rules, 2026.
Official PDF: https://www.incometaxindia.gov.in/documents/d/guest/notification-97-2026-pdf
