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ITR 6 – Company Income Tax Filing
ITR-6 –The Income Tax Department has introduced various forms for different taxpayers. An assessee should choose the appropriate form according to the source of income. One such Income Tax Return (ITR) is the ITR 6 form for companies. ITR-6 filing is a key annual compliance requirement for companies in India. Accurately filing ITR-6 before due date is crucial for ensuring compliance with the Income Tax Act 1961, helping businesses avoid late fees, interest and potential legal consequences.
Ready to complete your company’s ITR 6 filing? DisyTax experts are here to guide you through every single step—let’s begin your ITR-6 filing today!
Who is Eligible to File the ITR-6 Form?
ITR 6 Applicability
ITR 6 applies to all companies except those claiming an exemption under Section 11 of the Income Tax Act. Section 11 applies to income derived from property held under a trust or legal obligation for charitable or religious purposes. Therefore, companies with income used for charitable or religious purposes are not eligible to file ITR 6.
Applicable Entities:
Companies registered under the Companies Act of 2013 or the Companies Act of 1956 are required to file the ITR 6 Form. This includes:
Private Limited Company (Pvt.ltd)
One Person Company (OPC)
Public Limited Company
Who is Not Eligible to File ITR 6 Form?
The following entities are not eligible to file the ITR 6 Form:
· Individuals
· Hindu Undivided Family (HUF)
· Firms
· Associations of Persons (AOP)
· Bodies of Individuals (BOI)
· Local Authorities
· Artificial Judicial Persons
· Companies that seek exemption under section 11 of the Income Tax Act.
ITR 6 Due Date
Every company is required to file its Income Tax Return under Section 139 of the Income Tax Act by October 31st of the assessment year. If transfer pricing is involved, such a company is required to file its Income Tax Return by November 30th of the assessment year.
Documents Required for Filing ITR-6
When filing the ITR-6 return form, no annexures or documents, including TDS certificates, need to be attached. Taxpayers are advised to reconcile the taxes that have been deducted, collected, or paid on their behalf by comparing these amounts with their Tax Credit Statement (Form 26AS) and AIS.
Documents Required For ITR-6 Return Filing
- Purchase Bill
- Sales Bill
- Sales Return Details
- Purchase Return Details
- Tax Paid Challans for GST
- From 26AS
- Day to day Administration expenses and General expenses details
- Rental Agreement (if applicable)
- Fixed Assets Invoice Copy (if Applicable)
- Investment details made by Cash
- Investment details made through Bank
- Proof of Source of Cash In-flow and Cash Out-flow
- Loan details from Bank or Third Party
- Outstanding receivables and payables
- Company’s Pan and two DSCs
- Details of Bank used for business transactions (Acct No, IFSC Code)
- Statement from Bank used for business transactions
- Break-up of statement from Bank used for business transactions
The Importance of Timely Filing of ITR-6 for Companies
Filing ITR 6 on or before the due date not only ensures compliance with tax laws but also offers several financial and operational advantages for your business.
Carry Forward of Losses:
Filing on time allows a company to carry forward its losses for adjustment against future profits. According to Section 72 of the Income Tax Act, companies can carry forward business losses up to 8 subsequent assessment years. Failure to file on time results in losing this right, negatively impacting the company’s financial position.
Avoiding Penalties and Interest:
Late filing incurs a fee under Section 234F of the Income Tax Act. Additionally, timely filing helps avoid interest charges on any outstanding tax liabilities under Sections 234A, 234B, and 234C.
Reduced Risk of Scrutiny:
Timely filing minimizes the risk of scrutiny by tax authorities. Late submissions can raise red flags, potentially leading to notices and further examinations by the tax department.
Quicker Refund Processing:
Filing your income tax return on time facilitates faster processing of tax refunds from the income tax department.
Enhanced Credit Opportunities:
Timely filed tax returns are often required by banks and financial institutions as part of loan and credit facility applications. Demonstrating compliance and financial stability can improve the chances of securing credit.
Smoother Winding-Up Process:
If a company decides to cease operations, having all Income Tax returns filed on time is essential for a smoother and quicker winding-up process.
Get started today with DisyTax to complete your ITR 6 filing seamlessly and ensure your business remains compliant with tax regulations!
How to file ITR-6?
Process of Filing ITR Form 6
Step-1: Register or log in to the e-Filing portal using your PAN as user ID.
Step-2: Navigate to e-File and click on Income Tax Return.
Step-3: Choose the ITR form number and Assessment Year from the drop- down menu.
Step-4: Fill in the essential details asked in structure of that ITR form and calculate the payable tax.
Step-5: Pay the final tax liability, if any, and file the income tax return.
Step-6: Verify the ITR using Aadhaar OTP, EVC, or digital signature
To ensure a smooth and accurate filing of ITR Form 6, the Income Tax Department recommends that taxpayers follow these steps in the correct sequence:
- Part A:Begin by filling out the taxpayer’s basic details, including personal information and income sources.
- Schedules:Complete the relevant schedules that apply to your company’s income, deductions, and tax details. This includes details of profits and gains, tax payments, and any applicable exemptions.
- Part B:Fill in the total income, tax computation, and any carry-forward losses.
- Verification:Review all the information provided and complete the verification section to validate the accuracy of your return.
- Submit the ITR:Once all sections are filled out and verified, submit the ITR Form 6 electronically.
- Acknowledgement:After successful submission, download the acknowledgement receipt (ITR-V) for your records. If you opt for e-verification, you will receive an acknowledgement via email.
DisyTax experts are here to guide you through every single step—get in touch today to ensure a seamless filing experience for your ITR!
Structure of ITR 6 Form
ITR 6 is divided into Part A and Part B (along with the subsections) with multiple schedules that include information relevant to the income and tax of the taxpayer. Let us have a detailed look at this.
Part A (and its subsections)
- General information:This Subsection should be filled out with the basic details of the entity, such as the name, PAN number, address, CIN, incorporation date, etc.
- Trading Account:This subsection requires details that are relevant to the company’s income and expenditures.
- Balance sheet:This subsection should consist of the company’s details, such as liabilities, current liabilities, share capital, and more.
- Manufacturing account:This Subsection requires the figures for manufacturing the accounts relating to the inventory, such as opening stock, closing stock, and cost of the goods that are produced.
- Profit and Loss Account:This subsection should be filled with the details of the company’s profit or the loss that is incurred during the relevant financial year.
Part B (and its subsections)
- Part B-TI: Computation of Total Income
- Part B-TTI:Computation of tax liability for the total income.
Schedules | Purpose |
Schedule –HP | For computing incomes under the head Income from House Property |
Schedule –BP | For computing incomes under the head “profit and gains from business and profession |
Schedule –DPM | For calculating depreciation on plant & machinery |
Schedule –DOA | For a summary of depreciation on all assets |
Schedule –DCG | For calculating the deemed capital gain on the sale of depreciable assets |
Schedule –ESR | Deductions u/s 35, i.e. expenditure on scientific research |
Schedule –CG | For calculating income under the head “Capital gains.” |
Schedule –OS | For calculating income from other sources |
Schedule –CYLA | Calculating the income after setting off the current year’s loss |
Schedule –BFLA | Calculation of income after setting off the unabsorbed loss of the previous year |
Schedule –CFL | Statement of loss for carrying forward to a further year |
Schedule –UD | Statements of unabsorbed depreciation and allowance |
Schedule –ICDS | Income computation disclosure standards on profit |
Schedule –10AA | Deductions u/s 10AA |
Schedule –80G | Details of deduction u/s 80G relating to donations |
Schedule –80 GGA | Statement of donations for scientific research and rural development |
Schedule –VIA | Statement of deductions from total income under Chapter VI-A |
Schedule –SI | Details of income chargeable at special tax rates |
Schedule –PTI | Details relating to passing through income from business trust or investment fund |
Schedule –EI | Statement of exempted incomes |
Schedule –MAT | Details of tax payable u/s 115JB (Minimum Alternate Tax) |
Schedule –DDT | statement of tax paid on dividend, i.e. “dividend distribution tax” |
Schedule –BBS | Details of tax distributed income on buyback of shares |
Schedule –ESI | Statement of foreign incomes and tax relief to it |
Schedule –IT | Details on advance-tax paid and self-assessment tax |
Schedule –TDS | Details of TDS on incomes other than salaries |
Schedule –TCS | Statement of TCS (Tax collected at source) |
Schedule –FSI | Statement of income accruing outside India |
Schedule –TR | Details of tax relief claimed for foreign tax paid |
Schedule –FA | Complete details of foreign assets and foreign income |
Schedule –SH1 | Details of shareholding of an unlisted company |
Schedule –SH2 | Details of shareholding of start-ups |
Schedule –AL1 | Statement of assets and liabilities at the end of the year |
Schedule –GST | Statement of turnover reported for GST |
Schedule –FD | Details of payment/receipt made in foreign currency |
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ITR-6 Return Filing FAQ’s
What is ITR 6?
ITR 6 is the Income Tax Return form specifically designed for companies, excluding those claiming an exemption under Section 11 of the Income Tax Act.
Who needs to file ITR 6?
All companies registered under the Companies Act of 2013 or the Companies Act of 1956, except those claiming exemption under Section 11, are required to file ITR 6.
What is the due date for filing ITR 6?
The due date for filing ITR 6 is October 31st of the assessment year. If transfer pricing is involved, the due date is November 30th.
What documents are required for filing ITR 6?
No annexures or documents need to be attached when filing ITR 6, but it’s important to reconcile taxes deducted, collected, or paid by comparing with Form 26AS.
What are the consequences of filing ITR 6 late?
Late filing incurs a fee under Section 234F and may attract interest charges on outstanding tax liabilities under Sections 234A, 234B, and 234C.
Can a company carry forward its losses by filing ITR 6 on time?
Yes, timely filing allows companies to carry forward business losses for up to 8 subsequent assessment years
Who is not eligible to file ITR 6?
Individuals, Hindu Undivided Families (HUF), firms, associations of persons (AOP), bodies of individuals (BOI), local authorities, and companies seeking exemption under Section 11 are not eligible to file ITR 6.
What are the key sections of ITR 6?
ITR 6 includes Part A (General Information, Trading Account, Balance Sheet, Manufacturing Account, Profit and Loss Account) and Part B (Computation of Total Income and Tax Liability).
What should I do if my company’s sales exceed Rs 1 crore?
If your company’s total sales exceed Rs 1 crore, you are required to complete a tax audit under Section 44AB.
What happens if I fail to file ITR 6 by the due date?
Failing to file by the due date may result in penalties, loss of the ability to carry forward losses, and increased scrutiny from tax authorities.
Is there any fee for filing ITR 6?
While there is no fee for filing ITR 6 itself, penalties may apply for late filing under Section 234F.
Can I amend my ITR 6 after filing?
Yes, you can file a revised return to correct any errors or omissions in your original ITR 6 within the specified time frame.
How can I ensure accuracy when filing ITR 6?
Double-check all information entered in the form, reconcile figures with your accounting records, and ensure compliance with the Income Tax Act.
What is the role of a Chartered Accountant in filing ITR 6?
A Chartered Accountant can assist in preparing the ITR 6, conducting audits if required, and ensuring compliance with tax laws.
How do I e-file ITR 6?
Log in to the Income Tax Portal, navigate to the “e-Filing” section, select “Income Tax Returns,” and choose ITR Form 6 for filing.
How long does it take to process ITR 6?
The processing time may vary, but typically, it takes a few weeks to a couple of months, depending on the complexity of the return and the workload of the tax department.
Will I receive an acknowledgment after filing ITR 6?
Yes, after successful submission, you will receive an acknowledgment receipt (ITR-V) for your records.
Can I claim tax deductions while filing ITR 6?
Yes, companies can claim eligible tax deductions as per the provisions of the Income Tax Act while filing ITR 6.
What should I do if I have international transactions?
If your company engages in international transactions, ensure compliance with transfer pricing regulations and file ITR 6 accordingly.
How can DisyTax assist with ITR 6 filing?
DisyTax provides expert guidance, helps in preparing and filing ITR 6 accurately, and ensures compliance with tax regulations, allowing businesses to focus on their core operations.