Explore all the details you need about ITR 6 - Company Income Tax Filing, tailored for your needs.
Establishing a business comes with its own set of challenges, and navigating the complexities of filing returns is a vital aspect of successful operations. ITR-6 filing is a key annual compliance requirement for companies in India. Accurately filing ITR-6 on time is crucial for ensuring compliance with the Income Tax Act 1961, helping businesses avoid penalties and potential legal complications
Ready to complete your company's ITR 6? Solocorp experts are here to guide you through every step—let's begin your ITR-6 filing today!
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.
Private Limited Company
One Person Company
Public Limited Company
The following entities are not eligible to file the ITR 6 Form:
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..
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.
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.
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.
Filing your income tax return on time facilitates faster processing of tax refunds from the income tax department.
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.
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.
The ITR 6 Form is divided into Part A and Part B, along with several subsections and schedules that contain details regarding the income and tax of the taxpayer.
This subsection gathers essential details about the entity, such as the name, PAN number, address, CIN, and incorporation date.
This section includes the company's balance sheet, reporting liabilities, current liabilities, share capital, and other financial information.
Details related to the manufacturing accounts, including opening stock, closing stock, and the cost of produced goods, are reported in this section.
This part contains information relevant to the company's trading income and expenditures.
This section reports the company's profit or loss for the relevant financial year.
This part calculates the total income of the company based on the information provided in the schedules.
This section computes the tax liability based on the total income as reported in Part B-TI.
ITR 6 also includes schedules for reporting various types of income such as capital gains, foreign income, and deductions.
This form also requires details of tax payments including advance tax, self-assessment tax, TDS (Tax Deducted at Source), and TCS (Tax Collected at Source).
Taxpayers should follow the sequence: Part A, Schedules, Part B, Verification as recommended by the Income Tax Department.
| Schedule | 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 |
After logging into the Income Tax Portal, navigate to the 'e-Filing' section, select 'Income Tax Returns,' and choose ITR Form 6 for filing. 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:
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).
Solocorp offers comprehensive support for ITR 6 filing, ensuring a smooth and hassle-free experience for companies. With expert guidance from our team of professionals, we assist in understanding the specific requirements and deadlines associated with ITR 6. Our services include accurate preparation and filing of the return, ensuring compliance with the Income Tax Act. We also provide support in reconciling tax deductions with Form 26AS, helping companies avoid discrepancies. By choosing Solocorp, businesses can streamline their ITR 6 filing process and focus on their core operations while we handle the complexities of tax compliance.
Ready to simplify your ITR 6 filing process? Contact Solocorp now for expert assistance and ensure your compliance with ease.