ITR 6 Form - All About ITR 6

In India’s complex terrain of income tax compliance, the ITR 6 form plays a pivotal role, particularly for companies not claiming exemption under Section 11 of the Income Tax Act. Understanding the nuances of ITR 6 is crucial for corporations, ensuring accurate reporting and adherence to taxation norms.

The Income Tax Department has introduced various forms for different taxpayers. As an assessee, you should choose the appropriate form based on the source of income. One such Income Tax Return (ITR) is the ITR 6 form for companies.

What is ITR-6 Form?

The ITR-6 form is a comprehensive document that companies use to report their income, financial position, and other relevant details to fulfill their income tax obligations under the Indian tax system. It is filled out by companies that are not claiming exemptions under section 11. The ITR-6 form helps facilitate the assessment of the company’s tax liability and ensures compliance with the provisions of the Income Tax Act.

The form will be filed electronically and includes various parts and schedules requiring detailed information about the company’s income, expenses, assets, and liabilities. Companies may also need to attach an audit report prepared by a Chartered Accountant in certain cases.

Who Should File ITR 6?

All corporations incorporated under the Companies Act 2013 or the preceding Companies Act 1956 must submit Form ITR-6. Nevertheless, if a company derives its income from property held for religious or charitable purposes, it is exempt from the requirement to file Form ITR-6.

Electronic Submission of Audit Reports

If the taxpayer is subject to an audit under section 44AB and their accounts have been audited by an accountant, they must furnish details of the audit report, including the auditor’s information and the electronic submission date to the department.

What is the Structure of the ITR-6 Form?

Understanding the intricacies of various Income Tax Return (ITR) forms is paramount. ITR-6 is the designated form for filing tax returns for companies and entities other than individuals. The form has been divided into two parts and several schedules:

Part A: Comprehensive Information

• Part A-BS: Balance Sheet as of March 31, 2024
• Part A-BS-Ind AS: Balance Sheet as of March 31, 2024, or as of the date of the business combination
• Part A: Manufacturing Account for the fiscal year 2023-24
• Part A: Trading Account for the fiscal year 2023-24
• Part A-P&L: Profit and Loss Account for the fiscal year 2023-24
• Part A-Manufacturing Account-Ind AS: Manufacturing Account for the fiscal year 2023-24
• Part A-Trading Account Ind-AS: Trading Account for the fiscal year 2023-24
• Part A-P&L Ind-AS: Profit and Loss Account for the fiscal year 2023-24
• Part A-OI: Additional Information
• Part A-QD: Quantitative Details
• Part A-OL: Receipt and payment account of the company under liquidation

Part B

The 42 schedules comprise:

• Schedule-HP: Calculation of income categorized as “Income from House Property”
• Schedule-BP: Computation of income categorized as “Profit and Gains from Business or Profession”
• Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
• Schedule DOA: Computation of depreciation on assets other than plant and machinery under the Income-tax Act
• Schedule DEP: Overview of depreciation on all assets under the Income-tax Act
• Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
• Schedule ESR: Deduction under section 35 (expenditure on scientific research)
• Schedule-CG: Computation of income categorized as “Capital gains”
• Schedule 112A: Details of the sale of equity shares in a company or unit of an equity-oriented fund or unit of a business trust on which STT is paid under section 112A
• Schedule 115AD(1)(b)(iiii) - Proviso: Details of the sale of equity shares in a company or unit of an equity-oriented fund or unit of a business trust on which STT is paid under section 112A
• Schedule VDA: Income from the transfer of Virtual Digital Assets (VDA)
• Schedule-OS: Calculation of income categorized as “Income from Other Sources”
• Schedule-CYLA: Report on income after the set-off of the current year’s losses
• Schedule-BFLA: Report on income after the set-off of unabsorbed loss brought forward from earlier years
• Schedule-CFL: Report on losses to be carried forward to future years
• Schedule-UD: Details of unabsorbed depreciation and allowance under section 35(4)
• Schedule ICDS: Impact of Income Computation Disclosure Standards on Profit
• Schedule-10AA: Computation of deduction under section 10AA
• Schedule-80G: Details of donations eligible for deduction under section 80G
• Schedule 80GGA: Details of donations for scientific research or rural development
• Schedule RA: Details of donations to research associations, etc
• Schedule-80IA: Computation of deduction under section 80IA
• Schedule-80IB: Computation of deduction under section 80IB
• Schedule-80IC or 80IE: Computation of deduction under section 80IC or 80IE
• Schedule-VIA: Statement of deductions (from total income) under Chapter VIA
• Schedule-SI: Statement of income chargeable to tax at special rates
• Schedule IF: Information regarding investment in unincorporated entities
• Schedule-EI: Statement of Income not included in total income (exempt incomes)
• Schedule PTI: Pass-through income details from a business trust or investment fund
• Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
• Schedule-MATC: Computation of tax credit under section 115JAA
• Schedule BBS: Details of tax on distributed income of a domestic company on buyback of shares, not listed on the stock exchange
• Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
• Schedule FSI: Details of income from outside India and tax relief
• Schedule TR: Summary of tax relief claimed for taxes paid outside India
• Schedule FA: Details of Foreign Assets and income from any source outside India
• Schedule SH-1: Shareholding of an unlisted company
• Schedule SH-2: Shareholding of Start-ups
• Schedule AL-1: Assets and liabilities as at the end of the year
• Schedule AL-2: Assets and liabilities as at the end of the year (applicable for start-ups only)
• Schedule GST: Information regarding turnover/gross receipts reported for GST
• Schedule FD: Break-up of payments/receipts in Foreign currency
• Part B-TI: Computation of total income
• Part B-TTI: Computation of tax liability on total income

How do I Fill out the ITR-6 Form?

To file ITR Form 6, you must complete and submit it digitally. You can either fill it out online or use a downloaded soft copy and upload it to the e-filing portal.

Ensure you have your PAN, TAN, profit and loss statements, balance sheets, and closed books of accounts ready. If your income for the year is over ₹50 lakhs, you’ll also need to complete the ‘Assets and Liabilities’ form. Here’s a quick guide to filing ITR-6:

• Register on the Income Tax Department’s website using your PAN as your user ID.
• Choose Your Filing Method: You can download, fill out, and upload the form or complete it online.
• Select Form Type: Choose “ITR 6 Form.”
• Gather Documents: Include your PAN, Form 16, TDS certificates, investment details, interest statements, life insurance, and home loan statements.
• Additional Form: If your income exceeds ₹50 lakhs, fill out the ‘Assets and Liabilities’ form.
• Verify Submission: If you use a digital signature, verification will be done via OTP, and an acknowledgment number will be provided. You’ll receive an ITR-V via email without a digital signature, which must be verified within 120 days.

When to File ITR-6 Form?

Here’s a clearer breakdown of important deadlines related to accounting and reporting under the Income-Tax Act:

For Accounts Subject to Audit: If your accounts are subject to audit under the Income-Tax Act, the deadline for completing and submitting the audit report is October 31st of the assessment year.

For Reporting in Form No. 3CEB: If you are required to report transactions in Form No. 3CEB that pertain to international transactions or specific transactions with related parties, the submission deadline is November 30th of the assessment year.

For All Other Cases (Without Audit Requirements): If your accounts do not require an audit, the deadline for filing your income tax return is July 31st of the assessment year.

These deadlines ensure that your financial and tax reporting is completed on time, avoiding potential penalties and compliance issues.

Documents to be Attached with ITR 6

To file ITR-6, you will need several key documents to ensure a complete and accurate submission. These include:

• Financial Statements: Comprehensive documents that outline the financial performance of your business or organization.
• Balance Sheet: A statement that provides a snapshot of your company’s assets, liabilities, and equity at a specific time.
• Profit and Loss Statement: Also known as the income statement, this document details your business’s revenues, costs, and expenses over a specific period.
• Tax Credit Statement (Form 26AS): This form reflects the tax credits you are eligible for, such as TDS (Tax Deducted at Source) and other tax payments made on your behalf.

What are the Companies Claiming Exemptions under Section 11?

Section 11 of the Income Tax Act in India pertains to exemptions granted to entities, specifically charitable or religious trusts. Legal companies are not directly eligible for benefits under Section 11; instead, it primarily applies to trusts and institutions engaged in charitable or religious activities.

Under Section 11, the income of such trusts and institutions can be exempt from taxation if applied for charitable or religious purposes. These purposes may include relief to the poor, education, medical relief, and advancing any other object of general public utility.

On the other hand, companies may claim exemptions under different sections of the Income Tax Act based on their activities, such as Section 10 for specific types of income or deductions under various sections for eligible expenses.

To obtain the most accurate and current information on companies claiming exemptions under Section 11 or any other relevant sections, it is recommended to refer to the latest amendments in the Income Tax Act and official notifications from the Income Tax Department or consult with a tax professional.

Final Thoughts

Filing the ITR 6 form is a crucial responsibility for companies under its purview. It ensures compliance with tax regulations and provides a comprehensive overview of the company’s financial activities. Companies are advised to seek professional guidance to navigate the complexities of ITR 6 and ensure accurate and timely submissions. Understanding the nuances of this form is pivotal for maintaining financial transparency and adhering to the regulatory framework governing corporate taxation in India.

Key takeaways

• ITR-6 is an Income Tax Return form in India, primarily designed for companies not claiming exemptions under Section 11.
• The form covers various sections, including Balance Sheet details, Profit and Loss accounts, and depreciation computation.
• ITR-6 requires a detailed breakdown of depreciation on plant machinery and other assets, providing a comprehensive view of asset value over time.
• Various schedules, such as 80G, 80IA, and 80IB, cater to deductions and exemptions, allowing entities to optimize their tax liabilities.
• ITR-6 must be filed electronically, emphasizing the digital transition in tax compliance, and it encompasses detailed schedules covering diverse financial aspects.

FAQs on ITR 6