ITR-6 Form Filling in : Overview, Structure, and Filing Guide

Introduction

The ITR 6 Form is a crucial tax form used by businesses and corporations in India to file their income tax returns. It is specifically designed for companies that do not claim exemptions under section 11 (which deals with income from property held for charitable purposes). Understanding the ITR 6 form is essential for corporate entities to stay compliant with the Income Tax Act and avoid penalties. This article delves into everything you need to know about the ITR 6 Form – from its purpose to the filing process and eligibility criteria in .

What is ITR 6 Meaning?

The ITR 6 Form is used for filing the income tax returns of a company registered under the Companies Act. It is applicable to all companies except those that are claiming exemptions under section 11. This form includes various sections that need to be filled with information about the company’s income, expenses, taxes paid, and other financial details. Unlike individuals or firms, companies must file their taxes separately through this form.

Who Needs to File the ITR 6 Form in ?

The ITR 6 form needs to be filed in by the following:

• Companies Registered Under the Companies Act: All types of companies (public and private) operating in India, unless they claim exemptions under section 11.
• Corporations without Section 11 Exemption: Companies involved in business or professional activities who do not have income that qualifies for tax exemptions.

It’s important to note that some entities like non-profit organizations or charitable organizations claiming exemption under Section 11 will not use ITR 6; they typically file ITR 7 instead.

Eligibility Criteria for Filing ITR 6 Form in

Companies that are registered under the Companies Act and are not claiming exemptions under Section 11 must file the ITR 6 form. This includes:

• Private Limited Companies
• Public Limited Companies
• One Person Companies (OPCs)
• Limited Liability Partnerships (LLPs) (in some cases)

These companies should ensure that they have all the required financial documents, such as the balance sheet, profit and loss statement, and tax audit reports, before filing the ITR 6.

Key Features of ITR 6 Form

1. Income Details: This section asks for the company’s income, including income from business or profession, income from capital gains, etc.
2. Deductions and Allowances: Companies can claim deductions available under sections like 80G, 80JJAA, and other provisions, reducing the taxable income.
3. Tax Computation: This includes calculating the tax liability after applying the relevant tax rates and deductions.
4. Audit Details: For companies with a turnover above a certain threshold, an audit report must be submitted along with the ITR 6 form.

How is ITR-6 Structured?

The ITR-6 form is organized into two main parts and several schedules:

Part A includes:

• General Information
• Balance Sheet as of March 31
• Manufacturing Account for the financial year
• Trading Account for the financial year
• Profit and Loss Account for the financial year
• Other Information
• Quantitative Details
• Receipt and Payment Account (for companies under liquidation)

Part B consists of 46 schedules, which cover various aspects of income and deductions:

• Schedule-HP: Income from House Property
• Schedule-BP: Income from Business or Profession
• Schedule-DPM: Depreciation on Plant and Machinery
• Schedule-DOA: Depreciation on Other Assets
• Schedule-DEP: Summary of Depreciation
• Schedule-DCG: Deemed Capital Gains on Sale of Depreciable Assets
• Schedule-ESR: Deduction for Scientific Research Expenditure
• Schedule-CG: Income from Capital Gains
• Schedule-112A: Sale of Equity Shares with STT Paid
• Schedule-VDA: Income from Virtual Digital Assets
• Schedule-OS: Income from Other Sources
• Schedule-CYLA: Set-Off of Current Year’s Losses
• Schedule-BFLA: Set-Off of Brought Forward Losses
• Schedule-CFL: Losses to Be Carried Forward
• Schedule-UD: Unabsorbed Depreciation and Allowance
• Schedule-ICDS: Income Computation Disclosure Standards
• Schedule-10AA: Deduction under Section 10AA
• Schedule-80G: Donations for Deduction under Section 80G
• Schedule-80GGA: Donations for Scientific Research or Rural Development
• Schedule-80GGC: Contributions to Political Parties
• Schedule-80 IAC: Deductions for Eligible Start-Ups
• Schedule-80LA: Deductions for Offshore Banking Units or IFSC
• Schedule-RA: Donations to Research Associations
• Schedule-80 IA: Deduction under Section 80IA
• Schedule-80IB: Deduction under Section 80IB
• Schedule-80IC/80IE: Deductions under Section 80IC/80IE
• Schedule-VIA: Deductions under Chapter VIA
• Schedule-SI: Special Rate Income
• Schedule-IF: Investments in Unincorporated Entities
• Schedule-EI: Exempt Income
• Schedule-PTI: Pass Through Income from Business Trusts or Investment Funds
• Schedule-MAT: Minimum Alternate Tax (MAT) Calculation
• Schedule-MATC: Tax Credit under Section 115JAA
• Schedule-BBS: Tax on Buyback of Shares
• Schedule-TPSA: Secondary Adjustment to Transfer Pricing
• Schedule-115TD: Accreted Income
• Schedule-FSI: Foreign Income and Tax Relief
• Schedule-TR: Summary of Tax Relief for Taxes Paid Outside India
• Schedule-FA: Foreign Assets and Income
• Schedule-SH-1: Shareholding of Unlisted Companies
• Schedule-SH-2: Shareholding of Start-Ups
• Schedule-AL-1: Assets and Liabilities at Year-End
• Schedule-AL-2: Assets and Liabilities for Start-Ups
• Schedule-GST: GST Turnover/Gross Receipts Information
• Schedule-FD: Payments/Receipts in Foreign Currency

Part B includes:

• Part B-TI: Computation of Total Income
• Part B-TTI: Computation of Tax Liability

Additionally, the form includes sections for:

• Details of Advance Tax and Self-Assessment Tax Payments
• Tax Deducted at Source (TDS)
• Tax Collected at Source (TCS).

Key Updates in the ITR-6 Form for AY 2024-25

1. Introduction of Legal Entity Identifier (LEI) details.
2. A new Schedule 115TD has been added to report tax payable on accreted income.
3. Capital Gains Accounts Scheme information must now be disclosed.
4. Schedule 80GGC now requires details of donations made to political parties.
5. A new Schedule 80-IAC has been included to gather information about eligible start-ups.
6. Schedule 80LA now collects details about offshore banking units or units in the International Financial Services Centre (IFSC).
7. Disclosure is required for amounts owed to MSMEs beyond the prescribed time frame.
8. Section 115 BBJ now requires reporting of online gaming winnings.
9. Dividend income from units located in the IFSC must be reported.
10. Companies are required to provide the due date for return filing.
11. The acknowledgement number of the audit report and UDIN must be provided.
12. Companies recognized as Micro or Small Enterprises need to be mentioned.
13. A reason for tax audit under Section 44AB must be furnished.

Steps to Complete the ITR-6 Form in

The Income Tax Department recommends that taxpayers adhere to the following order when filling out their income tax return:

1. Part A
2. Schedules
3. Part B
4. Verification

Due Date for Filing ITR 6 Form in

1. If accounts are required to be audited under the Income Tax Act: 31st October of the assessment year
2. If the report in Form No. 3CEB needs to be submitted: 30th November of the assessment year
3. In cases where accounts do not need to be audited:

Why Bizfoc?

Bizfoc is one of the leading brands along with a professional and experienced team in the field of ITR filing. We provide a seamless process for ITR filing to our clients. We make sure to file everything accurately and in a minimal time period. We guide you at each and every step related to your filings and new ITR updates.

Conclusion

The ITR 6 form is a vital tax filing tool for companies in India. Filing it accurately ensures that businesses comply with tax laws and avoid penalties. With careful preparation of financial documents, correct deductions, and timely submission, the process can be smooth and hassle-free. Ensure you meet the eligibility criteria and file your taxes before the deadline to keep your business on the right side of the law. By staying informed about the requirements and making use of available resources, companies can effectively manage their tax obligations with the ITR 6 form in .

Frequently Asked Questions