ITR-B Filing for Section 158BC Notice: All You Need to Know
If you’ve received a notice under Section 158BC, you’re likely facing a block assessment due to a search operation under Income Tax Act provisions. Filing Form ITR-B is now mandatory and must be done through the Income Tax e-filing portal.
Here’s a simple guide to understand Form ITR-B, when and how to file it, and what it means for you legally.
What is Section 158BC?
Section 158BC applies when a search is conducted under Section 132 or a requisition under Section 132A. It triggers a special assessment called a block assessment, which covers undisclosed income for a block period — usually 10 years preceding the search.
Legal Basis: Chapter XIV-B of the Income-tax Act, 1961.
What is Form ITR-B?
Form ITR-B is the prescribed return form under Rule 12F of the Income-tax Rules, 1962. It’s to be used only in cases of block assessments under Section 158BC.
Key Points:
- Applicable only to searched persons (or their legal representatives)
- Must include undisclosed income found during the search
- Cannot be used for regular income tax return filing
Who Needs to File ITR-B?
You must file ITR-B only if:
- You’ve received a notice under Section 158BC
- A search or requisition under Section 132/132A has taken place
- The Assessing Officer instructs you to file this form for block period income
Filing Form ITR-B: Step-by-Step
Here’s how you can file ITR-B online:
| Step | Action |
|---|---|
| 1 | Log in to Income Tax Portal |
| 2 | Go to e-File > Income Tax Forms > File Income Tax Forms |
| 3 | Select Form ITR-B from the drop-down list |
| 4 | Choose relevant assessment year |
| 5 | Fill in undisclosed income, search-related assets, and regular income |
| 6 | Upload supporting documents (if required) |
| 7 | Validate using DSC (mandatory for companies) or EVC |
| 8 | Submit and retain acknowledgment for your records |
Note: Form ITR-B is not auto-populated. You must prepare details manually or through a tax professional.
Deadline for Filing ITR-B
The due date is 15 days from the service of the notice under Section 158BC.
Delay may lead to ex parte assessment under Section 144 or further penalty proceedings.
Legal Provisions Governing ITR-B
| Provision | Details |
|---|---|
| Section 158BC | Procedure for block assessment post-search |
| Rule 12F | Prescribes Form ITR-B |
| Section 158B(b) | Defines “block period” |
| Section 158BB | Computation of undisclosed income |
| Section 271AAA / 271AAB | Penalty for undisclosed income |
What Happens After Filing?
Once you file Form ITR-B:
- The AO will compute your total undisclosed income
- You may receive further notices for scrutiny
- Tax + interest + penalty will be levied as per Chapter XIV-B
Expert View: Avoid Casual Filing
“Block assessments are serious proceedings. Filing Form ITR-B casually can backfire. Ensure complete disclosure and consider consulting a CA or tax professional for legal protection.”
— CA A. Natarajan, Chennai
Practical Tips
- Keep a copy of the panchnama and search report handy
- Reconcile your regular returns with seized documents
- File within 15 days to avoid Section 144 best judgment assessment
- Consider voluntary disclosure under penalty relief provisions
Internal Link
Read more: How to Respond to an Income Tax Notice – Step-by-Step Guide
External Link
Refer official: CBDT Income Tax Forms
FAQs on Section 158BC and ITR-B
Q1. Can I file ITR-B without a notice?
No. ITR-B is specifically for cases where the AO issues a notice under Section 158BC post-search.
Q2. Is audit compulsory for ITR-B cases?
Not automatically. However, depending on the nature of your books, the AO may seek audit-style disclosures or rely on seized data.
Q3. Can I revise Form ITR-B?
No. Revision is not allowed for ITR-B. File carefully in one go.
Q4. What if I don’t have complete books for 10 years?
You must declare to the best of your knowledge. AO can estimate income under best judgment basis.
Summary
Received a Section 158BC notice after a search? You must file Form ITR-B on the Income Tax portal within 15 days. This special return covers block period income and is governed by Chapter XIV-B. Learn how to file it right and avoid penalties.
Need Help Filing Form ITR-B?
Get expert CA assistance from Efiletax. We help you file legally, disclose right, and respond to block assessments stress-free.