In India, each taxpayer has a description of a form for income tax filing, depending on their income sources and lawful business activity. For companies, there is one return form that is key — the ITR-6 Form Filing. ITR-6 is the form for companies. The returns/representations are part of the ITR-6 form. Furthermore, ITR-6 is fundamentally very different from ITR-1 and ITR-4, which are for individuals and small businesses and comply with Indian tax legislation, which are required to disclose their income, make payments related to income, and understand the tax consequences or implications represented by the income earned in the awareness of lawful businesses.
Who is required to file ITR-6?
Anyone who resides in India is legally required to file a return of income in a prescribed form under Section 139 of the Income Tax Act of 1961. However, the tax return must satisfy a number of conditions of the tax law to be legally compliant. For an operational company, each financial year must include complete records of profit and loss and trade activities per meaningful statutory procedure and appropriate regime (see below).
I also recommend filing a tax return even if you don't have to, to have a permanent, legitimate history of ownership of interests in the non-business society or corporation.
What types of details does ITR-6 collect?
ITR-6 collects legal and operating details on the entity, including discussion tabs and sections for examines "hold, operate, control, and establish" activities through an extensive list of event descriptions and operating segments. Each must be complete in itself, but the categories allow comparative and fluid analysis over time and again; all tax records must be available to substantiate enterprises.
How do I file ITR-6?
The electronic filing of ITR-6 is an easy process for most legitimate taxpayers, similar to completing an online questionnaire with auto-fill features, but must follow the prescribed legal forms, schedules, and sections for the details of the entity or activities being notated - there are many sections with many event classifications forthe enterprise.
It is suggested that most businesses file with a certified finance agency, as all finance work is increasingly automated and contains proprietary and publicly relevant information.
Who Should File ITR-6?
Applicable for:
- All companies registered under the Companies Act of India.
- Domestic companies, except those claiming exemptions under Section 11.
- Foreign companies' income generated in India.
Not applicable for:
- Charitable/religious organizations claiming exemption under Section 11.
- Partnerships, LLPs, proprietorships, and individuals (i.e., they have other forms such as ITR-3, ITR-4, etc.).
- In short, an eligible entity registered as a company and has taxable income is likely to use ITR-6.
Key Features of ITR-6
Electronic Filing Only
Unlike some other forms that allow for paper filing in special cases, the IT-R6 is purely an electronic return, and can only be filed electronically.
Digital Signature
The return is to be submitted using the company’s digital signature certificate (DSC). If the return is submitted and the DSC is not attached, the return will be rejected.
Companies must provide:
- Profit and Loss account.
- Balance sheet particulars.
- Audit particulars (where applicable).
- Details of all deductions and exemptions claimed.
- Shareholding pattern (where applicable).
Information Needed for ITR-6
When you are ready to file ITR-6, here’s what type of information you will need to have available:
- Company Information
- Name, PAN, CIN (Corporate Identification Number), and address
- Date of incorporation and business description
- Financial Statements
- Balance sheet figures (assets, liabilities, loans, investments, etc.)
- Profit and loss statement (revenue, expenses, and depreciation, etc.)
- Tax Computation Details
- Calculation of your total income
- Adjustments for tax law purposes (disallowances, carry-forward losses, etc.)
Filing ITR-6 Step-by-Step
Filing ITR-6 can seem overwhelming at first because of the volume of information that you require, but it will be easier if you follow a step-by-step procedure
Step 1: Collect Required Documents
Before logging into the portal, prepare:
- Audited financial statements (balance sheet, P&L account)
- Tax payment challans (advance tax, self-assessment tax)
- TDS deducted and reported in Form 26AS
- Prior year's return (as reference and carry forward figures)
Step 2: Log in to the e-Filing portal
Visit incometax.gov.in and log in with the company’s PAN as user ID.
Step 3: Select the ITR-6 Form
Select the option that asks for filing income tax returns and select ITR-6. The portal will allow you to fill the form online, or you can download the utility (Excel/Java utility) to prepare it offline.
Step 4: Enter the Required Details
- Enter basic company details
- Enter financial statement figures
- Report income from all sources - business, capital gains, other sources of income
- Make deductions wherever available
- Compute liability
Step 5: Validate and Attach Digital Signature
Once the form is filled, validate and attach the company’s digital signature certificate (DSC).
Step 6: Submit the Return
Upload and submit the form. You will receive an acknowledgement number (ITR-V) to accept as proof of filing.
Due Date for Filing ITR-6
- Depending on if your company is subject to audit, you have different due dates:
- Non-audit Companies: 31st July of the assessment year
- Audit Companies: 30th September of the assessment year
- Companies with Cross-Border Transactions: 30th November of the assessment year
If you miss these deadlines, you may be liable for late filing fees under Section 234F and additional interest on unpaid tax.
Penalties for Late Filing
- Filing ITR-6 late is not just a nominal late filing fine.
- Late fees up to ₹5,000 (₹1,000 if total income is lower than ₹5 lakh)
- Interest under Sections 234A, 234B, and 234
- Lack of ability to carry forward loss (except loss from house property)
So, timely filing is not just required; it is also financially prudent.
Common Mistakes to Avoid
Mismatch between financial statements and return
It is important to ensure that the figures that you have used in ITR-6 are aligned with your audited statements or the figures that you are reporting in-house. Any discrepancies could trigger scrutiny.
Conclusion
Filing for ITR-6 may appear daunting, but it is just a means for the government to ensure companies declare their profits fairly. Once this job is prepared for and undertaken systematically, it’s easy!
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