ITR-6 is the Income Tax Return form used by companies to file their tax returns. All companies, except those claiming exemption under Section 11 for income from property held for charitable or religious purposes, must submit their tax details using this form as per the Income Tax Act regulations.
What is the ITR-6 Form?
The ITR-6 Form is an income tax return form used by companies in India, except those claiming exemption under section 11 of the Income Tax Act, 1961. It is specifically designed for businesses that are structured as companies and are not registered under charitable or religious trusts.
This form requires detailed disclosures of income, expenses, deductions, tax computation, and other financial particulars. Companies must file this form electronically using digital signatures. It is one of the more complex ITR forms due to the nature of company finances and tax obligations, and it includes schedules for reporting international transactions, MAT computations, and other disclosures mandated under various sections of the Act.
Who should file ITR-6?
The ITR-6 Form must be filed by companies that do not claim tax exemption under section 11, which applies to income from property held for charitable or religious purposes. Hence, it is mandatory for private limited companies, public limited companies, and other registered corporate entities that generate taxable income.
However, companies claiming benefits under section 11, such as charitable trusts and institutions, are required to file ITR-7 instead. LLPs, partnerships, and individuals are also excluded from this form and must file under other applicable ITRs. Filing ITR-6 is crucial for corporations to remain compliant with Indian tax laws and avoid penalties.
What is the structure of the ITR-6 form?
The ITR 6 form has important sections for taxpayer information, details of income sources, calculation of taxes, and verification. It also includes a section for reporting business or professional income, depreciation adjustments, and any international transactions, if relevant.
There are over 40 schedules in total, covering aspects such as depreciation (Schedule DPM), income from house property, business or profession, capital gains, international transactions, MAT calculations, and TDS/TCS credits. Each section must be filled accurately with supporting documentation. Companies are also required to submit audit reports and details of key managerial personnel while filing the return electronically.
Key changes in the ITR-6 Form in AY 2024-25
For Assessment Year 2024–25, the ITR-6 Form underwent key updates to align with the new tax rules and compliance requirements. A significant change was the requirement to disclose details of advances received during the year for capital asset transfers under Section 56(2)(viib).
- Legal Entity Identifier (LEI): Mandatory for companies engaged in high-value transactions.
- New Schedule 115TD: For reporting tax on accreted income under Section 115TD.
- Capital Gains Accounts Scheme: Requires disclosure if gains are deposited under this scheme.
- Schedule 80GGC (New): For reporting donations made to political parties.
- Schedule 80-IAC (New): Applicable to eligible start-ups claiming deductions.
- Schedule 80LA (New): Seeks details of offshore banking units and IFSC entities.
- MSME Dues Disclosure: Mandatory reporting of dues to Micro and Small Enterprises beyond the permitted time.
- Online Gaming Winnings: Disclosure of winnings under the new Section 115BBJ.
- IFSC Dividends: Requires declaration of dividend income from IFSC units.
- Return Filing Due Date: Companies must mention the applicable filing deadline.
- Audit Report Details: Must provide Audit Report Acknowledgement Number and UDIN.
- MSME Classification: Company must state if recognised as a Micro or Small Enterprise.
- Reason for Tax Audit (Section 44AB): The basis for undergoing a tax audit must be clearly stated.
Additionally, companies are now required to provide more granular breakup of foreign remittances, interest income classification, and disclosure of exempt income under multiple sections. There were also enhancements in the reporting format for financial particulars of foreign subsidiaries and changes aligned with amended MAT provisions. These changes aim to improve transparency and facilitate better compliance tracking.
Key changes in the ITR-6 Form in AY 2020-21
In Assessment Year 2020–21, several critical updates were made to the ITR-6 Form to reflect legislative changes and improve tax transparency. One major inclusion was the option for companies to opt for a concessional tax regime under Section 115BAA or 115BAB.
Additionally, new fields were added for companies to report the impact of the COVID-19 pandemic on operations, including deferral of income and restructuring of liabilities. There were also revisions to depreciation schedules and additional compliance requirements regarding financial transactions above specified thresholds, such as cash deposits and expenses exceeding certain limits.
Key changes in the ITR-6 Form in AY 2019-20
For AY 2019–20, the ITR-6 Form incorporated structural updates to reflect amendments introduced in the Union Budget 2018. Companies were required to disclose details of turnover as per the GST returns to ensure reconciliation between income tax and GST filings.
Other key updates included changes in reporting requirements for income under presumptive taxation, additional disclosures regarding shareholder details for closely held companies, and new formats for balance sheet entries. There was also a requirement to disclose amounts received in digital mode, promoting a shift towards cashless transactions and greater transparency in financial dealings.
How do I file my ITR-6 Form?
Filing the ITR-6 Form must be done electronically using the Income Tax Department’s e-filing portal. It is mandatory for companies to authenticate the return with a valid digital signature certificate (DSC), as manual filing is not permitted for this form.
To begin, the taxpayer must download the ITR-6 utility from the official portal or use compatible third-party software. After filling all required sections and schedules, the file must be validated and uploaded. Once submitted, an acknowledgment (ITR-V) is generated. Taxpayers must also ensure that all attachments, such as audit reports, are uploaded correctly to complete the filing process.
Due date for filing ITR-6 form
The due date for filing ITR-6 is typically 31st October of the relevant assessment year. For AY 2024–25, this deadline applies to companies requiring audit under the Income Tax Act or any other applicable law.
If the company is engaged in international or specified domestic transactions, the due date is extended to 30th November. Timely filing is crucial, as delays attract penalties under Section 234F, which can go up to Rs.10,000. Additionally, delayed filings may result in restricted carry-forward of losses and other tax-related consequences that can impact financial planning and compliance.
Conclusion
The ITR-6 Form is a comprehensive tax return designed for companies not claiming exemption under section 11. With numerous schedules and mandatory digital filing, it ensures accurate reporting of income, deductions, taxes, and transactions.
Regular updates in the form require corporate taxpayers to stay aware of changes each assessment year. Filing within the deadline using the prescribed digital method is essential to avoid penalties and maintain compliance. Whether a private or public company, understanding the nuances of ITR-6 is key to fulfilling tax obligations effectively and systematically.
