ITR-6 Return Filing in India
ITR-6 is an income tax return form used by companies, other than those claiming exemption under Section 11 (related to charitable or religious trusts). It is filed by businesses incorporated under the Companies Act, including private, public, and foreign companies operating in India, to report their income, expenses, and tax liabilities. The form helps companies disclose their financial details, claim deductions and exemptions, and calculate their taxable income and tax payable for the financial year.
WHO CAN FILE ITR-6?
ITR-6 can be filed by any company, other than those claiming exemption under Section 11 of the Income Tax Act, which relates to income from property held for charitable or religious purposes. This includes:
- Private Companies – Companies that are privately incorporated under the Companies Act.
- Public Companies – Companies listed or unlisted that are publicly traded.
- Foreign Companies – Companies that are incorporated outside India but have income in India.
These entities must file ITR-6 to report their income, expenses, deductions, and tax liabilities for the financial year, ensuring compliance with tax regulations in India.
WHO CANNOT FILE ITR-6?
- Companies claiming exemption under Section 11 – These are entities such as charitable or religious trusts that derive income from property held for charitable or religious purposes. They must file ITR-7 instead.
- Individual taxpayers – ITR-6 is specifically for companies, so individuals cannot use this form.
- Hindu Undivided Families (HUFs) – HUFs cannot file ITR-6; they must use ITR-2 or ITR-3, depending on their income sources.
- Partnership Firms and LLPs (except in specific cases) – They are required to file ITR-3 or ITR-5, not ITR-6, unless they meet certain conditions.
Essentially, ITR-6 is intended exclusively for companies that are not claiming tax exemptions under Section 11.
STRUCTURE OF ITR-6:
- Part A General information
- Part B Outline of the total income and tax computation concerning income chargeable to tax.
Schedule |
Purpose |
|---|---|
Schedule –HP
|
Used to calculate income from house property
|
Schedule –BP
|
Used to calculate income from business and profession
|
Schedule –DPM
|
For calculating depreciation on plant and machinery
|
Schedule –DOA
|
Provides a summary of depreciation on all assets
|
Schedule –DCG
|
Used to calculate deemed capital gains on the sale of depreciable assets
|
Schedule –ESR
|
Details deductions under section 35 for scientific research expenses
|
Schedule –CG
|
Used to calculate income from capital gains
|
Schedule –OS
|
Used to calculate income from other sources
|
Schedule –CYLA
|
Used to calculate income after setting off the current year's loss
|
Schedule –BFLA
|
Used to calculate income after setting off unabsorbed losses from the previous year
|
Schedule –CFL
|
Used to report losses carried forward for future years
|
Schedule –UD
|
Provides details of unabsorbed depreciation and allowances
|
Schedule –ICDS
|
Used to disclose income computation standards related to profits
|
Schedule –10AA
|
Details deductions under section 10AA
|
Schedule –80G
|
Reports deductions under section 80G for donations
|
Schedule –80 GGA
|
Used to report donations made for scientific research and rural development
|
Schedule –VIA
|
Details deductions under Chapter VI-A from total income
|
Schedule –SI
|
Provides details of income subject to special tax rates
|
Schedule –PTI
|
Details of passing-through income from business trusts or investment funds
|
Schedule –EI
|
Provides a statement of exempted incomes
|
Schedule –MAT
|
Details the tax payable under section 115JB (Minimum Alternate Tax)
|
Schedule –DDT
|
Reports taxes paid on dividends, i.e., dividend distribution tax
|
Schedule –BBS
|
Details tax on income distributed through the buyback of shares
|
Schedule –ESI
|
Provides information on foreign incomes and tax relief on them
|
Schedule –IT
|
Reports advance tax paid and self-assessment tax
|
Schedule –TDS
|
Provides details of TDS (Tax Deducted at Source) on incomes other than salaries
|
Schedule –TCS
|
Details of Tax Collected at Source (TCS)
|
Schedule –FSI
|
Reports income accrued outside India
|
Schedule –TR
|
Provides details of tax relief claimed for foreign taxes paid
|
Schedule –FA
|
Complete details of foreign assets and income
|
Schedule –SH1
|
Reports shareholding details of unlisted companies
|
Schedule –SH2
|
Reports shareholding details of start-ups
|
Schedule –AL1
|
Provides a statement of assets and liabilities at the end of the year
|
Schedule –GST
|
Reports turnover for GST purposes
|
Schedule –FD
|
Provides details of payments or receipts in foreign currency
|
- Comprehensive Reporting: ITR-6 allows for a thorough reporting of a company's income, expenses, liabilities, and assets. It provides a detailed format to declare income earned from various sources, ensuring accuracy in tax reporting.
- Tax Benefits: By filing ITR-6, companies may be able to claim various tax deductions available under the Income Tax Act. This includes deductions under sections such as 80C, 80G, and other special provisions that may reduce taxable income.
- Avoid Penalties and Legal Issues: Filing tax returns on time (using ITR-6) helps companies avoid penalties, interest, or legal issues for non-compliance with tax laws. Timely filing ensures that companies meet their statutory obligations, reducing the risk of legal disputes.
- Clarity in Financial Management: ITR-6 helps companies maintain transparency in their financial affairs. It allows a clear picture of the company's financial health, which can be beneficial for stakeholders such as investors, creditors, and auditors.
- Carry Forward of Losses: If a company incurs losses during the year, it can carry forward those losses to set off against future income. This provision helps to reduce tax liabilities in subsequent years, provided the return is filed on time.
- Corporate Governance and Compliance: Filing ITR-6 ensures that companies maintain proper corporate governance by adhering to the tax laws of the country. It reflects the company's commitment to compliance and responsible business practices.
- Ease of Filing through E-Filing: The Income Tax Department provides an e-filing portal for companies to submit ITR-6 online, which is more convenient and efficient compared to paper-based filing. E-filing also speeds up the processing of returns.
- Required for Financial Year Reporting: ITR-6 ensures that companies meet the requirement for filing annual returns for a particular financial year. It is crucial for businesses that want to ensure accurate records for audits and assessments.
- Support for Special Tax Regimes: For companies availing of the special tax regimes (e.g., under sections like 44AD, 44ADA, etc.), ITR-6 provides the necessary structure to report and claim benefits under these regimes.
In conclusion, the ITR-6 form helps ensure tax compliance for companies, facilitates various tax benefits, and promotes transparency and good corporate governance practices.
- PAN (Permanent Account Number): For the company filing the return.
- Balance Sheet: The company's balance sheet showing its financial position at the end of the financial year.
- Profit and Loss Account: A statement showing the company’s income, expenses, and profits for the financial year.
- Tax Audit Report: If the company is subject to a tax audit, the report prepared by a Chartered Accountant (CA) needs to be submitted.
- Details of Income: Information on all sources of income such as business income, capital gains, interest, etc.
- Tax Payments: Details of advance tax paid, TDS (Tax Deducted at Source) deducted, and any other taxes paid during the year.
- Deductions and Exemptions: Information about any applicable deductions (e.g., under sections like 80G, 80C) or exemptions the company is claiming.
- Form 26AS: A summary of taxes deducted at source and advance tax paid, which is available on the Income Tax Department’s website.
- GST Returns: If the company is registered for GST, details of GST returns filed during the year may be needed.
- Dividend Income Details: If the company has earned income from dividends, it should be reported.
- Interest and Other Investment Income: Information regarding interest income from banks, fixed deposits, or other investments.
- Foreign Income Details: If the company has foreign income or assets, those need to be disclosed, along with necessary documentation.
- Other Financial Statements: Any other relevant documents reflecting the company’s financial activities.
- Visit the Income Tax e-Filing Portal: Go to the official Income Tax e-filing website.
- Login to Your Account: Enter your User ID (PAN) and Password to log in. If you don’t have an account, you’ll need to register first.
- Select the ITR Form: Once logged in, click on “e-File” and select “Income Tax Return”. Choose ITR-6 as the form to file.
- Fill in the Details: Carefully fill in the required fields such as company details, income details, tax computation, and deductions. Make sure you input accurate financial information from your balance sheet, profit & loss account, etc.
- Upload Supporting Documents: After filling in the form, upload relevant supporting documents like the audit report, financial statements, and Form 26AS (if applicable).
- Verify Your Details: Double-check the details before submitting the form. Ensure all information is correct to avoid errors or penalties.
- Submit the Form: Once verified, click on “Submit” to file your return.
- E-Verify the Return: After submission, you will be asked to e-verify the return. You can verify using methods like Aadhaar OTP, Net Banking, or Digital Signature.
- Acknowledgement: After successful submission and verification, you will receive an acknowledgment (ITR-V) via email. If you e-verify using Aadhaar or Net Banking, the acknowledgment will be generated immediately.
Due Date for Filing ITR-6:
- For companies that need to get their accounts audited:
- The due date for filing ITR-6 is October 31st of the assessment year.
- However, if the company is located in a specified region (like Jammu & Kashmir), the due date may be extended by the government.
- For companies that do not need to get their accounts audited: The due date is July 31st of the assessment year.
Penalty for Late Filing:
If ITR-6 is filed after the due date, penalties under Section 234F may apply:
- ₹5,000 if filed by December 31st of the assessment year.
- ₹10,000 if filed after December 31st.
- ₹1,000 for companies with total turnover or gross receipts of less than ₹5 million.
Additionally, interest under Section 234A may also apply if there is any delay in paying the tax due. To avoid penalties and interest, it’s important to file ITR-6 on or before the due date.
Understanding income tax slabs is key to effectively managing your tax obligations in India. These slabs are structured to align with the principle of progressive taxation, where higher income leads to higher tax rates. This ensures an equitable distribution of the tax burden across the population.
Categories of Income Taxpayers in India
India’s tax system divides taxpayers into three primary categories based on age:
- Individuals Under 60 Years: Regular working individuals and professionals.
- Senior Citizens (60–80 Years): Enjoy higher exemption limits due to lower earning
potential in retirement. - Super Senior Citizens (Above 80 Years): Further increased exemptions to reduce tax
burdens on the elderly.
Direct Tax System in India
The government introduced the new tax regime alongside the old one to provide taxpayers flexibility:
- Old Regime: Offers various deductions and exemptions.
- New Regime: Simplified but with fewer exemptions.
Old Regime:
Slabs (Rs.) |
Individuals (Age < 60 years) |
Resident Senior Citizens(60 to 80 years) |
Resident Super Senior Citizens(80 years and above) |
|---|---|---|---|
New Regime:
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Frequently Asked Questions in India
What is ITR-6?
ITR-6 is a tax return form that companies, other than those claiming exemption under section 11 (charitable trusts), use to file their income tax returns in India. It is primarily used by businesses and other corporate entities
Who is eligible to file ITR-6?
Companies other than those claiming exemption under section 11 of the Income Tax Act, which pertains to charitable or religious trusts, are required to file ITR-6
Can a company claim deductions under section 80C in ITR-6?
No. Section 80C applies to individuals and HUFs. Companies cannot claim deductions under section 80C. However, certain deductions for businesses are allowed, such as depreciation and donations to charitable organizations
What is the deadline for filing ITR-6?
For companies that are required to get their accounts audited, the due date for filing ITR-6 is November 30th of the assessment year (AY). For others, it’s September 30th
What documents are required to file ITR-6?
Required documents include:
- Financial statements (balance sheet, profit & loss account)
- Tax audit report (if applicable)
- TDS certificates
- Form 26AS
- Details of foreign assets/income (if applicable)
- GST details, if relevant
Can I file ITR-6 manually?
No. ITR-6 must be filed electronically (e-filing) through the Income Tax Department’s portal
How do I verify the ITR-6 after filing?
After submitting the return online, the verification can be done either through a Digital Signature Certificate (DSC) or by e-verification using an Aadhaar OTP or net banking
Can I file ITR-6 without an audit report?
If the company is not required to get its accounts audited under Section 44AB or other relevant sections, then it may not need to attach an audit report. However, companies engaged in business will often be required to submit it
What is the meaning of “CIN” in ITR-6?
CIN stands for Corporate Identification Number. It is a unique identification number assigned to a company by the Ministry of Corporate Affairs (MCA)
What if there is an error in ITR-6 after submission?
If an error is discovered after submission, you can file a revised return. The revised return should be filed before the end of the assessment year
Do I need to submit financial statements along with ITR-6?
Yes, financial statements (such as the balance sheet, profit & loss statement, etc.) should be attached while filing ITR-6 electronically
Is there any exemption for small companies from filing ITR-6?
Small companies are still required to file ITR-6 if they are not exempt under section 11. However, the threshold for audit may vary, and smaller companies may have simplified compliance
What is the meaning of "business income" in ITR-6?
“Business income” refers to the income earned by a company from its operations, such as sales, services, and other business-related activities
How should income from foreign sources be reported in ITR-6?
Income earned outside India should be reported under the relevant sections (e.g., Schedule OS), and if the company has foreign assets, those need to be disclosed in Schedule FA
Do I need to disclose transactions with related parties in ITR-6?
Yes, transactions with related parties must be disclosed, and the company must also comply with Transfer Pricing regulations by submitting the necessary details
What if a company’s financial year is different from the assessment year?
Companies following a different financial year (other than the standard April to March) should still file ITR-6 based on the financial year that corresponds to the assessment year
What is the significance of Form 26AS in ITR-6?
Form 26AS is a tax credit statement that provides a record of the TDS deducted on behalf of the company. It must be matched with the TDS reported in ITR-6 to avoid discrepancies
Can I amend or revise ITR-6 after filing?
Yes, you can file a revised return under Section 139(5) if you discover any mistakes after filing the original return. The revised return can be filed before the end of the relevant assessment year
Can I claim exemptions for charitable donations in ITR-6?
Yes, if the company has made donations to charitable institutions, it may claim deductions under Section 80G for donations
What if the company has tax credits from foreign tax paid?
Tax credits for taxes paid abroad may be claimed under Section 91 of the Income Tax Act, which allows relief for foreign taxes paid on income
