ITR6 Filing
ITR-6 is one of the income tax return (ITR) forms prescribed by the Income Tax Department of India. It is specifically designed for companies (other than those claiming exemptions under Section 11 of the Income Tax Act, 1961). These companies can be either domestic or foreign and must use ITR-6 to file their income tax returns.
Who Should File ITR-6?
ITR-6 is meant for the following types of entities:
Companies (other than Charitable/Religious Trusts):
Companies that are not claiming exemption under Section 11 (which applies to charitable or religious trusts) are required to file ITR-6.
This includes both domestic companies (companies that are registered in India) and foreign companies (companies that are not registered in India but earn income from sources in India).
Companies with Income from Other Sources: Companies that earn income from various sources such as business income, capital gains, interest, rental income, etc., must file ITR-6.
Companies under the Tax Audit Provisions: If a company’s accounts are required to be audited under Section 44AB, it must file ITR-6.
Companies Seeking Tax Benefits: If a company wants to avail of deductions or exemptions under specific sections like Section 80-IA (for setting up new industries), Section 80G (for charitable donations), or any other tax incentives, it must file ITR-6.
Purpose of Filing ITR-6
The primary purpose of ITR-6 is to enable companies to report their income and claim applicable exemptions, deductions, and benefits under various sections of the Income Tax Act. This form helps the Income Tax Department assess whether the company is complying with tax laws and whether the correct amount of tax has been paid.
Companies file ITR-6 to:
Report income earned during the financial year (from business, capital gains, other sources).
Claim deductions and exemptions available to them (such as deductions under Section 80, depreciation, etc.).
Calculate tax liability and ensure proper payment of taxes (advance tax, TDS, self-assessment tax).
Disclose financial statements and audit reports if applicable.
Key Features of ITR-6
For Companies: ITR-6 is specifically designed for companies, so it contains sections related to the company’s profits, business income, capital gains, dividend income, and other sources of income.
Detailed Income Reporting: The form requires detailed reporting of the company’s income from various sources, including business profits, capital gains, interest income, and dividends.
Depreciation and Adjustments: Companies must report depreciation claimed on assets, both for tax purposes and accounting purposes. Adjustments to book profits (such as for the calculation of Minimum Alternate Tax or MAT) are also made in this form.
Tax Deductions and Exemptions: The form allows companies to report tax deductions under various sections such as Section 80G (donations to charity), Section 80-IA (deduction for setting up industries), and others. It also lets companies claim exemptions based on income types, such as income from exports.
Transfer Pricing Disclosure: Companies involved in international transactions with associated enterprises must disclose information related to transfer pricing (under Section 92E). This includes the methodology used to determine the arm’s length price for related party transactions.
Audit Information: Companies are required to provide audit reports under Section 44AB of the Income Tax Act, which states that companies must have their financial statements audited by a Chartered Accountant.
Tax Computation: ITR-6 calculates the final tax payable by the company after considering adjustments, deductions, and exemptions. It helps in computing tax liability under Regular Tax or MAT (Minimum Alternate Tax), as applicable.
Other Relevant Details: The form asks for various details such as the company’s financial year, accounting methods, capital structure, shareholder information, etc.
Documents Required for Filing ITR-6
To file ITR-6, a company should gather the following documents:
Audited Financial Statements: Balance Sheet, Profit & Loss Account, and Cash Flow Statement for the relevant financial year.
These must be audited by a Chartered Accountant and must be attached with the return.
Tax Audit Report (Form 3CA/3CB): This is a report from a Chartered Accountant, certifying the company’s financial statements and ensuring that the company’s accounts comply with Indian tax laws.
Transfer Pricing Documentation: If the company is involved in international transactions with related parties, details of transfer pricing and the arm’s length pricing report must be included.
TDS Certificates (Form 16A/16B): Any TDS deducted by other parties on payments made to the company should be reported. These certificates will be issued by the deductor.
Tax Payment Details: Advance tax payments, self-assessment tax paid, and details of tax deducted at source (TDS) during the financial year.
Details of Deductions/Exemptions: Documentation supporting claims for exemptions or deductions, such as under Section 80G (donations), Section 80-IA (tax benefits for industrial development), or any other specific deductions applicable.
Shareholding Information: Details of shareholders and equity capital, especially for companies that deal with share capital or investments in subsidiaries or affiliates.
How to File ITR-6
ITR-6 must be filed online through the Income Tax e-Filing Portal. Here is a step-by-step process for filing:
Register/Login to the Income Tax Portal: If the company is not already registered, it needs to create an account on the Income Tax Department’s portal. Companies must register using their PAN number.
Select ITR-6 Form: On the e-filing portal, select ITR-6 from the list of available ITR forms.
Fill in the Form: Provide the necessary details like income, deductions, exemptions, taxes paid, and other relevant information in the form.
Ensure that all financial data is accurate, as this will determine the company’s tax liability.
Upload Documents: Attach audited financial statements, tax audit reports, transfer pricing documentation, and other required documents.
Verify the Return: After filling out the form, verify it through one of the e-verification methods like Aadhaar OTP, digital signature, or by submitting the signed ITR-V to the Income Tax Department.
Submit the Form: After successful verification, submit the form online.
Acknowledgment: Once the return is filed, you will receive an acknowledgment (ITR-V), which must be saved for future reference.
Due Date for Filing ITR-6
The due date for filing ITR-6 is typically 30th September of the assessment year.
If the company is involved in transfer pricing or requires a tax audit, the deadline may extend, but it is usually 30th September unless extended by the Income Tax Department.
Penalties for Non-Compliance
Late Filing Fees: Under Section 234F, a late fee of up to ₹5,000 may be levied for filing the return after the due date.
Interest: Interest under Section 234A, 234B, and 234C will be charged if the tax is not paid on time.
Denial of Deductions/Exemptions: The company might not be allowed to claim certain deductions or exemptions if it fails to file the return on time.
Conclusion
ITR-6 is an essential form for companies in India to file their income tax returns. It ensures that the company complies with tax laws by reporting income, claiming deductions and exemptions, and paying the appropriate tax. Filing ITR-6 on time and correctly is crucial for maintaining good standing with the Income Tax Department, avoiding penalties, and ensuring that the company’s tax obligations are met.
