The Finance Ministry has introduced a new income tax form called Form ITR-B, which was officially announced on Tuesday through a gazette notification. This form is meant for taxpayers who have undisclosed income that was discovered during an Income Tax search or requisition operation conducted on or after September 1, 2024. Such cases are handled through a special process called block assessment.
What is Block Assessment?
Block assessment is a special method used by the Income Tax Department when it finds hidden or unreported income during a search or raid. Normally, people report their income each year in regular ITR forms. But when someone hides income for several years and it is found during a raid, the tax department uses block assessment to look at all those years together and calculate the correct tax on that undisclosed income.
What is Form ITR-B for?
Form ITR-B is a new and simplified form specially made for people whose income is being assessed through the block assessment method. Unlike the regular ITR forms that ask for a lot of details, Form ITR-B only asks for limited information that is directly related to the block assessment period. This makes it easier and less time-consuming for taxpayers, while still giving the tax department the data it needs.
According to tax experts, this form reduces the burden of filling out many details and helps focus only on what’s required for block assessment.
Can You Claim TDS/TCS on Undisclosed Income?
Yes, if any TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) was already paid on the undisclosed income, the taxpayer can claim credit for that using Form ITR-B. However, these claims will be carefully checked by the tax officer. If proper documents are not available, the claim may be rejected, which can cause problems.
