Another important feature in the new form is the provision allowing assessees to claim TDS and TCS credit against undisclosed income.
| Photo Credit:
lakshmiprasad S
Income Tax Department has come out with a return form for block assessment (ITR-B). This is required to be filed by those who want to disclose previously undisclosed income after an income tax search or requisition operation on or after the September 1, 2024.
“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,” a notification by the Central Board of Direct Taxes (CBDT) said.
Experts say the new form seeks to address some of these procedural ambiguities related to block assessments. Unlike the detailed disclosures necessitated in conventional ITR forms, Form ITR-B calls for limited data specifically related to the block assessment period. This ensures that taxpayers are not overburdened with compliance requirements while ensuring precision in data reporting.
“The form mandates taxpayers to disclose undisclosed income comprehensively, categorising it under various heads of income, assessment year wise within the block period and item wise assets, such as money, bullion, jewellery, virtual digital assets, etc, “ said Sandeep Jhunjhunwala, M&A Tax Partner at Nangia Andersen LLP.
This granular categorisation aims to enhance transparency, ensuring that the scope of undisclosed income is effectively assessed,” he added.
Another important feature in the new form is the provision allowing assessees to claim TDS and TCS credit against undisclosed income. However, such claims remain subject to verification and satisfaction of the tax officer, which could pose challenges in cases of incomplete documentation.
Although the digitisation of Form ITR-B filing is a commendable effort, an apparent contradiction surfaces in its verification section. The form stipulates electronic filing but simultaneously requires details such as stamp receipt number, seal and manual signatures of the receiving official within the verification tab. This discrepancy may create procedural confusion, undermining the form’s objective of seamless digital compliance.
Immediate rectification of this inconsistency is essential to eliminate potential procedural ambiguities.
“While the form offers much-needed clarity and operational efficiency, the contradiction in verification norms reveals a need for further legislative and procedural refinements. Eliminating these inconsistencies will be pivotal in ensuring taxpayer confidence and fostering compliance within the revised tax framework,” Jhunjhunwala concluded.
Published on April 8, 2025
Another important feature in the new form is the provision allowing assessees to claim TDS and TCS credit against undisclosed income.
| Photo Credit:
lakshmiprasad S
Income Tax Department has come out with a return form for block assessment (ITR-B). This is required to be filed by those who want to disclose previously undisclosed income after an income tax search or requisition operation on or after the September 1, 2024.
“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,” a notification by the Central Board of Direct Taxes (CBDT) said.
Experts say the new form seeks to address some of these procedural ambiguities related to block assessments. Unlike the detailed disclosures necessitated in conventional ITR forms, Form ITR-B calls for limited data specifically related to the block assessment period. This ensures that taxpayers are not overburdened with compliance requirements while ensuring precision in data reporting.
“The form mandates taxpayers to disclose undisclosed income comprehensively, categorising it under various heads of income, assessment year wise within the block period and item wise assets, such as money, bullion, jewellery, virtual digital assets, etc, “ said Sandeep Jhunjhunwala, M&A Tax Partner at Nangia Andersen LLP.
This granular categorisation aims to enhance transparency, ensuring that the scope of undisclosed income is effectively assessed,” he added.
Another important feature in the new form is the provision allowing assessees to claim TDS and TCS credit against undisclosed income. However, such claims remain subject to verification and satisfaction of the tax officer, which could pose challenges in cases of incomplete documentation.
Although the digitisation of Form ITR-B filing is a commendable effort, an apparent contradiction surfaces in its verification section. The form stipulates electronic filing but simultaneously requires details such as stamp receipt number, seal and manual signatures of the receiving official within the verification tab. This discrepancy may create procedural confusion, undermining the form’s objective of seamless digital compliance.
Immediate rectification of this inconsistency is essential to eliminate potential procedural ambiguities.
“While the form offers much-needed clarity and operational efficiency, the contradiction in verification norms reveals a need for further legislative and procedural refinements. Eliminating these inconsistencies will be pivotal in ensuring taxpayer confidence and fostering compliance within the revised tax framework,” Jhunjhunwala concluded.
Published on April 8, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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