CBDT Notifies New ITR-B Form and E-Filing Rules

CBDT Notifies New ITR-B Form and E-Filing Rules
New Rule 12AE and Form ITR-B notified under the Income-tax Rules
G.S.R. 221(E).––In exercise of the powers conferred by section 158BC read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Incometax Rules, 1962, namely:-
- (1) These rules may be called the Income-tax (Tenth Amendment) Rules, 2025.
(2) They shall be deemed to have come into force on the 1st day of September, 2024. - In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), after rule 12AD, the following rule shall be inserted, namely: ––
“12AE. Return of income under section 158BC.–
(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 1st 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: ––
TABLE
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.”
- In the said rules, in Appendix-II, after FORM ITR-U, the following FORM ITR-B shall be inserted, namely: –
Crux of Notification (G.S.R. 221(E)):
The CBDT has introduced Rule 12AE and Form ITR-B under the Income-tax Rules, 1962, specifying the return filing process for block assessments under section 158BC (applicable in search or requisition cases initiated on or after September 1, 2024).
Key Highlights:
- Form ITR-B is the prescribed form for such returns.
- Filing must be done electronically:
- With digital signature for companies, political parties, and those requiring audit under section 44AB.
- For others, either by digital signature or electronic verification code (EVC).
- Tax credit claims (excluding self-assessment tax) against undisclosed income will be allowed only after Assessing Officer’s verification.
- DGIT (Systems) will set standards for secure data transmission, archival, and retrieval.
Impact:
Streamlines and digitizes the compliance process for block assessments post-search/requisition, ensuring better data handling and stricter verification of tax credits on undisclosed income.
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- Changes in GST and Income Tax during the Financial Year 2024-25
- TDS and TCS provisions applicable from April 1, 2025
- Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals
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