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Overview of ITR-6 Form - Company Income Tax Return Filing
In India, all companies, including Private Limited Companies, Public Limited Companies, and One Person Companies (OPCs), must adhere to mandatory compliance requirements. These include filing various forms such as DIR-3 KYC, ADT-I, holding an Annual General Meeting (AGM), filing audit reports, and submitting forms AOC-4 and MGT-7 with the Registrar of Companies (RoC). One of the critical filings is the Income Tax Return (ITR) Form 6, which applies to domestic companies and other corporate bodies that do not qualify for simpler returns such as ITR-1 to ITR-5.
ITR-6 is specifically designed for companies that have multiple income sources and complex financial activities, including business income, capital gains, interest income, dividends, and other receipts. While the form requires detailed disclosures such as audited financial statements, profit and loss accounts, and balance sheets, it provides full transparency, ensuring compliance with statutory tax obligations. The form also helps companies claim all eligible deductions and fosters the creation of accurate financial records for future legal and credit-related activities.
What is the ITR-6 Form?
The ITR-6 form is an income tax return used by companies and other corporate entities to file their annual returns with the Income Tax Department of India. The form is applicable to:
- Domestic Companies that are not claiming exemption under Section 11 of the Income Tax Act.
- Other Corporate Entities like cooperative societies, trusts, or non-profit organizations that do not qualify for simpler returns like ITR-7.
ITR-6 requires companies to disclose their business income, director’s remuneration, capital gains, rental income, and other sources of income. The form also mandates the filing of audited financial statements, balance sheets, and other compliance documents under the Companies Act, 2013.
Advantages of Filing ITR-6
Filing ITR-6 offers numerous benefits, making it an essential tax filing tool for companies. These include:
- Financial Transparency: The form ensures complete disclosure of income sources, providing a clear picture of the company's financial health, which is vital during tax audits.
- Enhanced Credibility: Filing ITR-6 along with audited financial statements builds credibility with financial institutions, making it easier to access loans, credit lines, and other financial services.
- Accurate Tax Calculation: By providing detailed financial data, ITR-6 ensures that the tax liability is calculated accurately, helping companies avoid overpayment or underpayment of taxes.
- Audit Readiness: The comprehensive details provided in ITR-6 simplify the audit process and reduce the chances of errors or notices from the tax authorities.
- Legal Compliance: Filing the ITR-6 correctly ensures that a company adheres to the Income Tax Act of 1961, helping avoid penalties and legal complications.
Who Can File ITR-6?
ITR-6 is applicable to the following entities:
- Public Limited Companies
- Private Limited Companies
- One Person Companies (OPCs)
- Other Corporate Bodies (e.g., cooperative societies or trusts, if not filing ITR-7)
Who Cannot File ITR-6?
ITR-6 is not applicable to:
- Individuals or Hindu Undivided Families (HUFs)
- Charitable Institutions and Political Parties (they must file ITR-7)
- Partnership Firms and Limited Liability Partnerships (LLPs)
- Bodies of Individuals and Artificial Judicial Persons
- Local Authorities
- Companies seeking exemption under Section 11 of the Income Tax Act (e.g., charitable or religious organizations)
Income Sources Covered Under ITR-6
The ITR-6 form covers detailed reporting of various income sources, including:
- Business Income: Earnings from core business activities such as sales, manufacturing, or services.
- Professional Income: Remuneration for services rendered by directors or other key personnel.
- Salary Income: Director's remuneration or any salary components as part of the corporate compensation.
- House Property Income: Rental income from properties owned by the company.
- Capital Gains: Profits from the sale of assets such as stocks, bonds, or real estate.
- Other Sources: Miscellaneous incomes, including interest income, dividend income, etc.
Structure of the ITR-6 Return Form
The ITR-6 form consists of the following sections to help in the comprehensive disclosure of financial data:
- Part A: General Information – Provides a snapshot of the company’s financial details, including the balance sheet, profit and loss account, and manufacturing/trading details.
- Part B: Schedules for Detailed Tax Computation – Includes schedules that calculate income from various sources and apply deductions/exemptions.
- Part B-TI: Computation of Total Income – Calculates total income after considering all income heads, exemptions, deductions, and losses.
- Part B-TTI: Computation of Tax Liability – Calculates the company’s tax liability based on total income, applying relevant tax rates and credits.
Key Tax Computation Schedules
The form includes several schedules to calculate specific taxes:
- Schedule-HP: Computation of income from house property.
- Schedule BP: Computation of income under "Profit and Gains from Business or Profession."
- Schedule-CG: Capital gains from asset sales.
- Schedule-80G: Deductions for donations made by the company.
- Schedule-VIA: Deductions under Chapter VIA of the Income Tax Act.
By filling out ITR-6, companies ensure they meet their statutory tax obligations while maximizing eligible deductions and benefits under Indian tax laws.
Documents Required to File ITR-6 Form
Before filing the ITR-6 form for your business or organization, make sure you gather the following necessary documents. These documents are required to ensure the filing is accurate and complete.
- Entity Documents: Ensure you have the PAN (Permanent Account Number) of the business, Aadhaar card of the authorized signatory (if applicable), and the bank account details of the entity for the financial year.
- Financial Statements: Provide the audited Profit & Loss Account, Balance Sheet, and any other supporting financial documents for the concerned financial year.
- Tax Credit Documents: Form 26AS and the Annual Information Statement (AIS) are essential documents to reflect the tax credits available.
- Supporting Documents: Collect various supporting documents such as invoices, receipts, rental agreements, investment proofs, housing loan interest certificates, and donation receipts.
Organizing these documents in advance will ensure a smoother filing process and help you avoid errors. Make sure all the information is accurate to avoid delays in processing your ITR-6 form.
Process for Filing ITR-6 Return Form Online
Filing the ITR-6 return form online is a straightforward process when you follow the necessary steps. The process ensures that your tax filing is accurate and compliant with the Income Tax Act. Below is a detailed guide to filing the ITR-6 form online:
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Step 1: Login to the Income Tax Portal
Visit the official Income Tax portal at incometax.gov.in. Log in with your company’s PAN, password, and Captcha code.
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Step 2: Select ITR-6
Navigate to the “File Income Tax Return” section. Select the relevant Assessment Year (e.g., AY 2024-25 for FY 2023-24) and choose the “ITR-6” return form. You can also download the utility Java form for ITR-6 if needed.
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Step 3: Fill in General Information
Enter details such as the entity name, PAN, address, and contact information. You will also be required to select whether this is an original or revised return and choose the applicable tax regime.
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Step 4: Report Income Details
Provide detailed figures for each income head, including:
- Business/Professional Income
- Salary/Remuneration
- Capital Gains and Other Income
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Step 5: Claim Deductions and Adjustments
Enter the eligible deductions under sections like 80C, 80D, 80E, 80G, 24(b), etc. of the Income Tax Act, 1961.
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Step 6: Compute Tax Liability and Pay Dues
The system will automatically calculate your tax based on the provided data. Pay any outstanding tax using net banking, debit card, or by submitting a challan (ITNS 280).
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Step 7: Review, Submit, and Verify
Carefully review all entered information for accuracy. Submit your ITR-6 return form online and complete the verification process.
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Step 8: Confirmation and Refund Tracking
After verification, you will receive confirmation via email and SMS. You can track any refunds in the “My Account” section on the e-filing portal.
Deadlines for Filing ITR-6
The deadlines for filing the ITR-6 form are as follows:
- Non-Audit Cases: If your company or LLP is not subject to a tax audit, the return must be filed by July 31 of the assessment year.
- Audit Cases: If your company or LLP is required to undergo a tax audit, the filing deadline is usually October 31 of the assessment year.
Common Mistakes to Avoid While Filing ITR-6
- Using the Wrong Form: Ensure that ITR-6 is filed only by entities that qualify (companies, LLPs, etc.).
- Incomplete Income Disclosure: Avoid omitting any income source, especially complex income such as capital gains.
- Inaccurate Financial Statements: Double-check that all audited accounts and financial statements are correct.
- Incorrect Deduction Claims: Claim only those deductions for which you have proper documentation.
- Failure to Verify: Always complete the e-verification process. Unverified returns are considered incomplete.
Checklist for ITR-6 Filing
- Confirm eligibility for filing ITR-6.
- Collect all necessary documents (PAN, audited financials, Form 26AS, etc.).
- Ensure comprehensive disclosure of all income.
- Accurately claim deductions with proper proofs.
- Upload all financial statements and supporting documents.
- Compute tax liability and pay any pending dues.
- File the return before the deadline (usually July 31 for non-audit cases or October 31 for audit cases).
- Complete the e-verification within 30 days.
- Retain copies of all documents for future reference and audit purposes.
Tax-Saving Tips While Filing ITR-6
- Maintain clear and detailed financial records to support every deduction.
- Claim all eligible deductions.
- Adjust any business losses accurately to reduce taxable income.
- Match TDS and tax credits carefully using Form 26AS and the AIS.
- Consult a tax professional for additional tips tailored to your entity’s complex income structure.
Why Choose Kanakkupillai for ITR-6 Filing?
Kanakkupillai is your trusted partner for ITR-6 filing. Our expert team guarantees a smooth and accurate filing process. Here’s why you should choose us:
- Personalized Approach: We offer customized solutions tailored to your business, ensuring you take advantage of all legal benefits.
- Expertise and Experience: With years of experience, our team is well-versed in ITR-6 filing and tax compliance, providing trusted guidance.
- Timely Filing and Compliance: We ensure your ITR-6 is filed within the deadlines, avoiding penalties and interest charges.
- Hassle-Free Process: Our platform and team simplify the tax filing process, handling all paperwork and submissions efficiently.
- Transparent Pricing: We offer clear and cost-effective pricing, with no hidden fees and full transparency on costs.
With Kanakkupillai, you can file your ITR-6 with confidence and ensure your business remains fully compliant.
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