ITR-6 Form: Step by Step Guide, Due date, Latest News

What is the ITR-6 Form?

ITR 6 is an income tax return form that should be filed by companies, including

• Domestic Companies
• Foreign Companies
• Firms (partnerships, limited liability partnerships)

This form can be used to report the income earned by the above-mentioned entities during the financial year and to calculate the tax liability. ITR-6 is applicable to entities that do not claim exemptions under section 11 of the Income Tax Act, 1961.

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Companies claiming exemptions under section 11

Those companies whose income from property is held for some charitable or religious purpose can claim exemption under section 11. These companies can not use ITR Form 6 for filing the income tax return with the income tax department.

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What is the due date for filing ITR Form 6?

• When accounts require audit under the Income-Tax Act - 31 October of the assessment year
• When report in Form No. 3CEB is required to be furnished - 30 November of the assessment year
• In other cases (non-audit cases) - 31 July of the assessment year

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Who Should File ITR-6 Form?

The following entities should file ITR-6 forms as per the Income Tax Act -

1. Domestic Companies: Companies having their registered place of business in India are called domestic companies, and these companies are governed by Indian tax laws.
2. Foreign Companies: Companies that are registered outside India but have income sources in India are known as foreign companies.
3. Partnership Firms: It includes all partnership firms, including limited liability partnerships (LLPs), that do not claim exemption under Section 11.
4. Companies with Income from Business or Profession: Any company that has income from business or profession must file ITR 6.

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Key Features of ITR-6?

Given below are the main features of ITR-6 -

• No exemption Under Section 11: ITR-6 is applicable only to companies and firms that do not claim any tax benefits or exemptions under section 11, which is related to income derived from property held for religious or charitable purposes.
• Comprehensive Reporting: This form requires the taxpayer to provide a detailed report of the income, expenses, and tax calculations from sources like business and capital gains.
• Tax Computation: ITR-6 has sections for calculating the tax liability on the basis of the applicable tax rates for companies.

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What is the Sequence for filing ITR Form 6?

For filing ITR Form 6, the income tax department advises the taxpayer to follow a few steps in proper sequence while filing a return of income tax:

• Part A
• Schedules
• Part B
• Verification

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What is the structure of the ITR Form-6?

The Form is divided into two parts and numerous schedules. According to the sequence they are as follows:

Part A-

Part A: General information It includes the basic details such as

• Name,
• PAN,
• Complete Address,
• Corporate Identity Number (CIN),
• Date of Incorporation, etc.

Part A-BS: Balance Sheet as on 31st March 2021
It includes the details of

• Shareholder’s fund,
• Share application money pending allotment,
• Non-current liabilities,
• Current liabilities,
• Assets and more.

Part A-BS-Ind AS: Balance Sheet as on 31st March 2021 or as on the date of the business combination

Part A-Manufacturing Account for the financial year

It includes the details that together comprises the information of the manufacturing account of the company, such as

• Opening inventory,
• Closing stock
• Cost of goods produced,

Part A-Trading Account for the financial year

It includes details of debits and credits occurring in the trading account of the company during the applicable financial year.

Part A-P&L : Profit and Loss Account for the financial year

It includes details of credits and debits to the P&L Account as well as details of provisioning made by the company.

Part A-Manufacturing Account-Ind AS: Manufacturing Account for the financial year

Part A-Trading Account Ind-AS: Trading Account for the financial year

Part A-P&L Ind-AS: Profit and Loss Account for the financial year

Part A-OI: Other information

Part A-QD: Quantitative details

Part A-OL: Receipt and payment account of company under liquidation

Schedules (46)

• Schedule-HP: Computation of income under the head Income from House Property. It includes rent received, tax paid to local authorities for property, unrealised rental amount and so on.
  
  
• Schedule-BP: Computation of income under the head “profits 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 other assets under the Income-tax Act
• Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
• Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
• Schedule ESR: Deduction under section 35 (expenditure on scientific research)
• Schedule-CG: Computation of income under the head Capital gains.
  
  
• Schedule 112A: Sale of equity share in a company or unit of equity-oriented fund or unit of a business trust on which STT is paid under section 112A
• Schedule 115AD(1)(b)(iii): Sale of equity share in a company or unit of equity-oriented fund or unit of a business trust on which STT is paid under section 112A
• Schedule VDA: Income from transfer of virtual digital assets.
• Schedule-OS: Computation of income under the head Income from other sources. It includes
  1. Dividends,
  2. Cash credits,
  3. Pass through income,
  4. Rental income from machinery, plant, etc,
  5. Interest from post office deposit, savings,
  6. Income tax refund and so on.
• Schedule-CYLA: Statement of income after set off of current year’s losses
• Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
• Schedule- CFL: Statement of losses to be carried forward to future years.
• Schedule –UD: Details of unabsorbed depreciation and allowance under section 35(4)
• Schedule ICDS: Effect of Income Computation Disclosure Standards on profit
• Schedule- 10AA: Computation of deduction under section 10AA
• Schedule- 80G: Details of donation entitled 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 80IAC: Deduction in respect of eligible start-up
• Schedule LA: Deduction in respect of offshore banking unit or IFSC
• 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 80 IE
• Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
• Schedule-SI: Statement of income which is chargeable to tax at special rates
• Schedule PTI: Pass through income details from business trust or investment fund
• Schedule-EI: Statement of Income not included in total income (exempt incomes)
• 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 domestic company on buy back of shares, not listed on the stock exchange
• Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
• Schedule 115TD: Accreted income under section 115TD
• Schedule ESI: Details of income from outside India and tax relief
• Schedule-IT: Statement of payment of advance-tax and tax on self-assessment.
• Schedule-TDS: Statement of tax deducted at source on income other than salary.
• Schedule-TCS: Statement of tax collected at source
• Schedule FSI: Details of income accruing or arising outside India
• 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 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-

Part B-TI: Computation of total income
It includes :

1. Income from house property
2. Profits/gains from business or profession
3. Capital Gains
4. Income from other sources
5. Various deductions, etc.

Part B-TTI: Computation of tax liability on total income
It includes :

1. Tax payable on total income u/s 115 JB
2. Tax Relief under various sections of the IT Act, 1961
3. Interest and fee payable
4. Amount Payable (if applicable)
5. Refund amount (if applicable)
6. Bank details (domestic/international), etc.
7. Details of Advance Tax and Self-Assessment Tax
8. Details of Tax Deducted at Source (TDS)
9. Details of Tax Collected at Source (TCS)

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Procedure for filling the Document of verification

The verification is the final step while using ITR-6 Form. This verification is done electronically and named as E-verification. All the detailed information is to be entered in the E-verification form. Strike the information that is not applicable. Ensure that the verification has been signed before the furnishing of the return of income. The designation of the person signing the return of income should be mentioned.

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Format of ITR Form 6

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E-filing of audit reports

When the assessee is liable for audit under section 44AB and their accountant audits, the details of the audit has to be furnished for the department electronically along with various details of the audit such as date of auditing and so on. This is called e-filing of audit reports.

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How to File ITR-6?

Given below are the steps that you need to follow to file ITR-6 through the Income Tax Portal -

Step 1: Register on the E-Filing Portal

• Go to the Income Tax e-filing portal.
• If you're a new user, register with your PAN, email ID, and mobile number.

Step 2: Log In

• Use your credentials to log in to the e-filing portal.

Step 3: Select the ITR Form

• Go to the "e-File" section and click on "Income Tax Return."
• Choose "ITR 6" from the list.

Step 4: Enter Your Details

• Fill in all sections, including personal details, income, deductions, and tax calculations.
• Ensure accuracy and keep the necessary documents ready.

Step 5: Validate the Information

• Click "Validate" to check for errors or missing details.

Step 6: Submit the Form

• Review all details, then submit the form online.
• You will receive an acknowledgment receipt after successful submission.

Step 7: E-Verify Your Return

• Verify your return using Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC, Bengaluru.

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Tips-to-File-ITR-6

Here are some important tips that you must follow while filing ITR-6 -

• Gather Required Documents: Before you begin, collect all necessary documents, such as financial statements, tax deduction records, and your previous year’s return.
• Ensure Accuracy: Double-check all figures to prevent discrepancies that could result in penalties.
• Maximize Deductions: Review the deductions available under the Income Tax Act and claim all eligible ones to reduce your tax liability.
• File Before the Deadline: Submit your ITR 6 on time to avoid penalties and interest charges.
• Consult a Professional if Needed: If you're unsure about any step, seek guidance from a tax professional or chartered accountant.

Need help filing your ITR or have a tax-related query? Get in touch with our tax experts who can not only help you with ITR filing but also ensure you achieve maximum tax savings. Book an Online CA Now!

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