ITR-6: Step-by-Step Guide to Fill ITR-6 Form Online

Form ITR-6 serves as a crucial tool for commercial entities that do not draw income from charities or religious establishments. Its purpose is to report income, profits, losses, and tax-related information to the income tax authority. Whether you are a company, firm, LLP, AOP, BOI, Artificial Juridical Person, estate, business trust, or investment fund, understanding the ITR-6 is crucial for fulfilling your tax obligations.

The ITR-6 form is a comprehensive form that requires taxpayers to provide detailed information about the income, expenses, and deductions of organizations not drawing income from philanthropy or religious establishments. The form is divided into several sections, each of which deals with a different aspect of the income of taxpayer’s income. Such companies must report their income, profits and losses, and details about taxes paid to the income tax authority through ITR-6. This blog will discuss everything about Form 6, like what is ITR form 6, what is the structure of the form, how it is filled, and who can fill it.

What is the ITR-6 Form?

The ITR-6 is an income tax return form that is used by companies other than organizations claiming exemption under section 11 of the Income Tax Act, 1961. It is also used by firms, BOIs, LLPs, AOPs, Estates of deceased, Artificial Juridical Persons (AJP), Estates of insolvent, Business trusts, and investment funds.

The ITR-6 form is a comprehensive form that requires taxpayers to provide detailed information about their income, expenses, and deductions. The form is divided into several sections, each of which deals with a different aspect of the taxpayer’s income.

The ITR-6 form must be filed by companies that have a turnover of more than ₹25 lakhs in the previous financial year. The form must be filed electronically through the e-filing website of the Income Tax Department.

What is the Structure of the ITR-6 Form?

Form 6 is divided into several sections, each of which deals with a different aspect of income. It is a complex form, and taxpayers should seek professional help in filling it out. Here are some of the key sections of the ITR-6 form:

Part A: General Information

This section contains information about the taxpayer, such as their name, address, PAN, and TAN. It also contains information about the business, such as the name of the business, the registration number, and the address of the business.

Part B: Income Details

This section contains information about the taxpayer’s income from all sources, such as business income, income from other sources, capital gains, and income from foreign sources.

Part C: Expenses and Deductions

This section contains information about the taxpayer’s expenses and deductions, such as expenses incurred in earning business income, deductions allowed under the Income Tax Act, and tax deducted at source.

Part D: Tax Liability

This section contains information about the taxpayer’s tax liability, such as the tax computation, the tax payable, and the tax deducted at source.

Part E: Verification

This section contains a declaration by the taxpayer and their signature.

Who is Eligible to File ITR-6?

If you are a company not qualifying for exemptions under Section 11 of the Income Tax Act, 1961, you must file ITR-6. Corporate bodies earning income from property designated for charitable trusts or religious purposes can claim exemptions under Section 11.

Last Date for filing ITR-6

The last date for filing ITR-6 for the financial year 2022-23 is 31st July 2023. However, taxpayers who have opted for the extension of time for filing their returns can file their returns by 31st October 2023.

The due date for filing ITR-6 is different for different categories of taxpayers. For example, the due date for filing ITR-6 by companies that have a turnover of more than ₹250 crores in the previous financial year is 31st March 2023.

Taxpayers who fail to file their ITR-6 on time may be liable for late filing penalties. The late filing penalty is ₹500 for the first month of delay and ₹100 for every subsequent month, up to a maximum of ₹5,000.

If you are a taxpayer who is required to file ITR-6, it is important to file your return on time to avoid penalties. You can file your ITR-6 electronically through the e-filing website of the Income Tax Department.

How to Download ITR-6 Form?

If you do not want to fill out the form electronically, then you can download it. Just follow these easy steps:

• Visit the official web portal of the Income Tax Department.
• Place your cursor over the ‘Download’ tab.
• Click on ‘ITR Notified Forms AY 2020-21’, followed by ‘ITR-6, and fill out the form

Filling ITR-6 Form

ITR Form 6 must be filled and submitted digitally. You can enter the details online or fill up the downloaded soft copy and upload it to the e-filing portal.
You should keep your PAN, TAN, profit and loss statements, balance sheets, and book of accounts closed. If your income for the relevant financial year exceeds ₹50 lakhs, you need to submit the ‘Assets and Liabilities’ form. Here are the steps on how to file ITR-6:

• Register yourself on the website for the Income Tax Department. Your PAN will be your user ID.
• Choose how you want to file your return. You can either download the form, fill it out, and upload it, or you can fill in the details online.
• Select the form type “ITR 6 Form.”
• Gather your documents, including PAN, Form 16, TDS certificates, investment details, interest statements, life insurance, and home loan statements.
• If your income for the financial year is more than Rs 50 lakhs, you will need to fill out an additional form for ‘Assets and Liabilities.’
• Verify your form submission. If you submit your form with a digital signature, your form will be verified through OTP, and an acknowledged number will be generated.
• If you submit the form without a digital signature, an ITR-V will be sent to your registered email ID. You need to verify it within 120 days of filing the return.

No annexures are required. Do not attach any documents (including TDS certificates) with the ITR-6 form. Taxpayers are advised to compare the taxes deducted/collected/paid by them with their Tax Credit Statement Form 26AS.

Tax Calculation for Form 6

It is also important to calculate the taxes while filling out the form. Once the form fill-up is complete, you can see the tax amount you are liable to pay. The calculations take into account any tax you have paid in advance. It is advisable to tally the totals against your Tax Credit Statement Form 26AS.

If you have already paid more tax than the amount you have to pay, the tax department will initiate your refund after filing the ITR.

How to Fill Out the Verification Document?

It is mandatory to verify the returns using a digital signature. Once verified, you will receive an acknowledgment number. You have to fill out the verification document and strike out any information that is not applicable. Make sure that the verification document is signed before submitting the return. Select the designation of the person signing the return.

Please note that anyone who makes a false statement in return may be prosecuted under Section 277 of the Income-tax Act, 1961, and, if convicted, may be sentenced to rigorous imprisonment and/or a fine.

Key Changes in the Tax Slabs in AY 2023-24

The income earned in FY 2023–24, or between April 1, 2023, and March 31, 2024, is subject to the new income tax slabs announced under the new tax regime. The old income tax slabs under the new tax system will apply to income tax returns filed for FY 2022–23 (AY 2023–24), whose deadline for filing is July 31, 2023.

Income tax slabs are as follows as per the new tax regime:

Wrapping it Up

Filing your taxes accurately and on time is of paramount importance, especially for commercial entities falling under the purview of ITR-6. By familiarizing yourself with the intricacies of ITR-6, you can ensure compliance with income tax regulations and avoid penalties for late filing. Remember to seek professional assistance if needed, as the complexities of this form necessitate careful attention to detail.

Stay informed, stay organized, and fulfill your tax responsibilities effectively with ITR-6.

Key Takeaways

• ITR-6 is a tax return form for commercial entities that do not draw income from charities or religious establishments.
• The form must be filed electronically and contains detailed information about the taxpayer’s income, expenses, and deductions.
• If you fail to file your ITR-6 on time, you may be liable for late filing penalties.
• It is important to seek professional assistance if you need help filing ITR-6.