The Income Tax Department has implemented several forms for different taxpayers. It’s important for a taxpayer to select the correct form based on their income sources. Among these forms is the ITR 6, which is specifically meant for companies. This article provides comprehensive information regarding the ITR 6.
Update from the Budget of 2021: Taxpayers are now required to make advance tax payments on dividend income, but this obligation only comes into effect once the dividend has been officially declared or paid.
What is the ITR-6 Form?
All companies except those eligible for exemption under section 11 are required to submit their income tax return using the ITR-6 Form.
What are the companies seeking exemptions under section 11?
Companies eligible for exemption under section 11 are those whose earnings from property are dedicated to charitable or religious objectives.
Click here to view the latest ITR-6 form issued by the Income Tax Department.
Who should file ITR 6?
All companies registered under either the Companies Act 2013 or the preceding Companies Act 1956 should submit ITR 6 Form for their income tax return filing. However, if the company’s source of income comes from the properties used for religious or charitable objectives are exempted from the requirement of filing the ITR 6 Form.
E-filing audit reports
If the taxpayer is required to undergo an audit under section 44AB and their financial records have been examined by an accountant, they need to provide the electronic information regarding the audit report, auditor along with the date on which this information was submitted to the tax department.
What is the structure of the ITR-6 Form?
The form has been split into two parts and multiple schedules as follows:
- Part A: General particulars
- Part A-BS: Statement of Financial Position as of 31st March 2023
- Part A-BS-Ind AS: Statement of Financial Position as of 31st March 2023 or the date of business amalgamation
- Part A-Manufacturing Report for the fiscal year 2022-23
- Part A-Trading Report for the fiscal year 2022-23
- Part A-P&L: Profit and Loss Statement for the fiscal year 2022-23
- Part A-Manufacturing Report-Ind AS: Manufacturing Report for the fiscal year 2022-23
- Section A-Trading Report Ind-AS: Trading Report for the fiscal year 2022-23
- Part A-P&L Ind-AS: Profit and Loss Statement for the fiscal year 2022-23
- Part A-OI: Additional details
- Part A-QD: Quantitative particulars
- Part A-OL: Record of receipts and disbursements for a company undergoing dissolution
- Part B
The 42 schedules are:
- Schedule-HP: Computation 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 machinery and equipment according to the Income-tax Act.
- Schedule DOA: Computation of depreciation on assets other than machinery and equipment, following the Income-tax Act.
- Schedule DEP: Summary of depreciation for all assets, as per the Income-tax Act.
- Schedule DCG: Computation of notional capital gains on the sale of depreciable assets.
- Schedule ESR: Deductions permitted under section 35 for expenses related to scientific research.
- Schedule-CG: Computation of earnings under the Capital gains category.
- Schedule 112A: Computation related to the sale of shares in a company or equity-oriented funds with STT payment under section 112A.
- Schedule 115AD(1)(b)(iiii) – Proviso: Computation related to the sale of shares in a company or equity-oriented funds with STT payment under section 112A.
- Schedule VDA: Determination of income from the transfer of Virtual Digital Assets (VDA).
- Schedule-OS: Computation of earnings categorized as Income from other sources.
- Schedule-CYLA: Statement showing income after adjusting current year’s losses.
- Schedule-BFLA: Statement displaying income after adjusting carried-forward unabsorbed losses from previous years.
- Schedule- CFL: Declaration of losses to be carried forward to subsequent years.
- Schedule –UD: Particulars of unabsorbed depreciation and allowances according to section 35(4).
- Schedule ICDS: Impact of Income Computation Disclosure Standards on profits.
- Schedule- 10AA: Computation of deductions as per section 10AA.
- Schedule- 80G: Details of eligible donations for deduction under section 80G.
- Schedule 80GGA: Information regarding donations made for scientific research or rural development.
- Schedule RA: Specifics of donations given to research associations and similar entities.
- Schedule- 80IA: Computation of deductions in accordance with section 80IA.
- Schedule- 80IB: Computation of eligible deduction as per Section 80IB
- Schedule- 80IC or 80IE: Determination of deduction under section 80IC or 80 IE
- Schedule-VIA: Statement of deductions from overall income under Chapter VIA.
- Schedule-SI: Statement of income subject to special tax rates.
- Schedule IF: Details regarding investments made in unincorporated entities.
- Schedule-EI: Statement of income not included in total income due to exemption.
- Schedule PTI: Pass through income details about income passed through business trust or investment fund.
- Schedule-MAT: Computation of Minimum Alternate Tax as per Section 115JB.
- Schedule-MATC: Calculation of tax credit according to the provisions of Section 115JAA.
- Schedule BBS: Details of tax applied to income distributed during share buyback by unlisted domestic companies.
- Schedule TPSA: Report on secondary adjustment related to transfer pricing under Section 92CE(2A).
- Schedule FSI: Information regarding foreign income and associated tax relief.
- Schedule TR: Overview of claimed tax relief for foreign taxes paid.
- Schedule FA: Comprehensive disclosure of foreign assets and income from sources outside India.
- Schedule SH-1: Information about shareholding of unlisted company
- Schedule SH-2: Information about shareholding in start-up companies.
- Schedule AL-1: Presentation of assets and liabilities at the end of the financial year.
- Schedule AL-2: Assets and liabilities at year-end specifically applicable to start-up entities.
- Schedule GST: Information concerning turnover/gross receipt reported for GST
- Schedule FD: Breakdown of payments and receipts in foreign currency.
- Part B-TI: Computation of overall income as per tax regulations.
- Part B-TTI: Determination of tax liability based on the total income computed.
- Tax payments:
- Details regarding payments made as Advance Tax and Self-Assessment Tax
- Details of Tax Deducted at Source (TDS) from various sources of income
- Details of Tax Collected at Source (TCS) for the respective periods
Key modifications in the ITR-6 Form in AY 2020-21
The key modifications in the ITR-6 Form in AY 2020-21 can be outlined as follows:
- A distinct schedule labeled 112A, intended for computing long-term capital gains on sale of equity shares or units belonging to a business trust that are subject to Securities Transaction Tax (STT).
- The details of tax deduction claims for investments or payments or expenditure carried out between the period of April 1, 2020, and June 30, 2020.
- The details of tax on secondary adjustments to transfer prices, as outlined in section 92CE(2A) of the Income Tax Act.
Key modifications in the ITR-6 Form in AY 2019-20
The key changes in the ITR-6 Form in AY 2019-20 can be outlined as follows:
- Details of acknowledgment as a start-up by DPIIT
- Details of declaration filed in Form-2
- Bifurcation of donations into monetary and non-monetary mode of payment
- Information on turnover or overall receipts as reported for GST.
How do I fill out the ITR-6 Form?
Sequence for filling out parts and schedules
The recommended order for filling out your income tax return, as advised by the Income Tax Department, is as follows:
- Part A
- Schedules
- Part B
- Verification
How do I file my ITR-6 Form?
Electronic submission of this income tax return is obligatory, and it must be filed digitally with a digital signature to the Income Tax Department.
No annexures required
Do not attach any document (including TDS certificate) along with this return form when submitting ITR-6. Taxpayers are instructed to match the taxes that have been deducted, collected, or paid on their behalf with the information present in their Tax Credit Statement, Form 26AS.
Due date for filing ITR-6 Form
- For the purpose of auditing accounts under the Income-Tax Act, the deadline is set as the 31st of October in the assessment year.
- If there is a requirement to provide the report in Form No. 3CEB, it should be submitted by the 30th of November in the assessment year.
- In situations where there is no necessity for auditing accounts, the due date for compliance is the 31st of July in the assessment year.
How to fill out the verification document?
Fill up the necessary information in the Verification document. Cross out any detail that do not apply.
Please make sure that the verification has been signed prior to providing the return.
Indicate the role or position of the individual signing the return. It should be noted that providing inaccurate information in the return or its accompanying schedules may result in legal action under section 277 of the Income-tax Act, 1961. Upon conviction, the person could face severe penalties, including imprisonment and fines.
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