Income Tax Update: Online Filing of Form ITR-B Now Enabled for Section 158BC Notices
The Income Tax Department has taken another step toward making tax compliance easier and more transparent. In a major development, taxpayers who have received notices under Section 158BC of the Income Tax Act can now submit Form ITR-B online through the e-Proceeding tab on the official income tax portal.
This move is part of India’s larger goal to build a faceless, technology-driven, and taxpayer-friendly ecosystem.
What is Section 158BC of the Income Tax Act?
Section 158BC deals with the assessment of undisclosed income found during search or seizure operations by the Income Tax Department.
When a search is conducted (under Section 132) or books and assets are requisitioned (under Section 132A), any unreported or unaccounted income discovered triggers the block assessment process under Chapter XIV-B of the Income Tax Act.
Key Points about Section 158BC:
The assessing officer issues a notice to the taxpayer.
The taxpayer is required to file a return of income for the block assessment period.
This period typically covers six assessment years immediately before the year of the search.
The return must be filed using Form ITR-B, specifically designed for such cases.
In simple words, if the Income Tax Department finds unaccounted wealth or income during a raid, it asks the taxpayer to explain and declare this income formally using Form ITR-B.
What is Form ITR-B?
Form ITR-B is the special return form for block assessment cases. It is not for regular annual income tax returns but for situations where undisclosed income has been found during search and seizure actions.
Key Features:
✅ Captures total undisclosed income for the block period
✅ Allows declaration of taxes already paid
✅ Calculates remaining tax liability
✅ Ensures compliance with post-search assessment rules
Earlier, filing this form was a cumbersome, largely manual process that required taxpayers to visit the Income Tax office, coordinate with officials, and submit physical paperwork.
What’s New: Online Filing Now Available
The big update is that the Income Tax Department has enabled digital submission of Form ITR-B via the e-Proceeding tab on the official portal.
✅ No physical submission needed
✅ Log in to your account on the Income Tax portal
✅ Go to the e-Proceeding section
✅ Upload and submit Form ITR-B online
This change significantly reduces hassle, minimizes errors, and speeds up compliance. It also aligns with the government’s vision for a faceless, transparent tax administration.
Why This Matters for Taxpayers
For taxpayers served with a notice under Section 158BC, compliance used to be tedious. Long wait times, physical visits, and paperwork made the process stressful.
Now, with online filing:
Taxpayers can respond quickly without visiting offices.
Documentation stays digital and easy to access.
Errors due to manual data entry are reduced.
It’s aligned with other digital initiatives like e-Assessment, e-Verification, and e-Payments.
It’s a big win for both taxpayers and the Income Tax Department, promoting accountability and ease of doing business in India.
CBDT Advisory to Taxpayers
The Central Board of Direct Taxes (CBDT) has urged all taxpayers who have received notices under Section 158BC to make use of this online facility immediately.
Detailed step-by-step instructions are available on the income tax e-filing portal to help taxpayers file smoothly.
✅ Avoid delays
✅ Ensure timely compliance
✅ Prevent interest and penalty issues
Taxpayers are encouraged to carefully review their notices and proceed with online submission without waiting until the last minute.
Part of a Broader Digital Push
This move is not an isolated update but part of a broader strategy by the Income Tax Department to digitize core tax processes.
Recent initiatives include:
Faceless Assessment and Appeals
E-Verification of ITR
Instant PAN through Aadhaar
Pre-filled ITR Forms
Online TDS/TCS Reconciliation
Experts have praised these reforms for:
✅ Cutting down red tape
✅ Reducing the scope for corruption
✅ Improving taxpayer experience
✅ Making compliance cheaper and faster
Conclusion: A Step Toward Transparent Tax Administration
Enabling online filing of Form ITR-B is another major milestone in India’s journey toward modernizing tax compliance.
For taxpayers facing search and seizure assessments, it offers a simpler, faster, and fully digital way to fulfill their obligations.
Key Takeaway:
If you have received a notice under Section 158BC, don’t delay. Log in to the Income Tax portal and submit Form ITR-B online via the e-Proceeding tab today!
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