What is the concept of ITR-6 Form ?

All the companies need to file an income tax return by using ITR Form 6. Only companies other than companies claiming exemption under section 11 must furnish ITR Form -6 to file their income tax return with the Income Tax Department of India.


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.


Due date for filing ITR Form 6

The due date for filing ITR Form 6 for the purpose of the return of income tax is 30th September. After this date if an assessee will file the form it will be taken as late and charged with late fee.


Eligibility criteria for ITR Form 6

ITR Form 6 is furnished by the taxpayers who are registered as a company under the Companies Act 2013(or under former act) . This form cannot be filled by taxpayers who are:

  • Firm
  • Individuals
  • Hindu Undivided Family (HUF)
  • Local authority and artificial judicial person
  • Body of Individuals (BOI)
  • Association of Person (AOP)
  • Companies claiming exemption under section 11

Sequence for filing ITR Form 6

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

  • Part A
  • Schedules
  • Part B
  • Verification

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

    1. Name,
    2. PAN,
    3. Complete Address,
    4. Corporate Identity Number (CIN),
    5. Date of Incorporation, etc.

    Part A: General information

  • Part A-BS: Balance Sheet as on 31st March 2019
    It includes the details of

    1. Shareholder’s fund,
    2. Share application money pending allotment,
    3. Non-current liabilities,
    4. Current liabilities,
    5. Assets and more.

    Part A-BS

  • Part A-BS-Ind AS: Balance Sheet as on 31st March 2019 or as on the date of the business combination
  • Part A-Manufacturing Account for the financial year 2018-19

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

    1. Opening inventory,
    2. Closing stock
    3. Cost of goods produced,
    4. Part A-Manufacturing Account

  • Part A-Trading Account for the financial year 2018-19

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

    Part A-Trading Account

  • Part A-P&L : Profit and Loss Account for the financial year 2018-19

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

    Part A-P&L : Profit and Loss Account

  • Part A-Manufacturing Account-Ind AS: Manufacturing Account for the financial year 2018-19
  • Part A-Trading Account Ind-AS: Trading Account for the financial year 2018-19
  • Part A-P&L Ind-AS: Profit and Loss Account for the financial year 2018-19
  • Part A-OI: Other information
  • Part A-QD: Quantitative details
  • Part A-OL: Receipt and payment account of company under liquidation

Schedules (42)

  • 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-HP

  • 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-CG

  • 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- 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-DDT: Details of payment of Dividend Distribution Tax
  • Schedule BBS: Details of tax on distributed income of domestic company on buy back of shares, not listed on the stock exchange
  • 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)

Procedure for filling the Document of verification

The verification is the final step while using ITR Form 5. 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.


Format of ITR Form 6

Schedule-CG


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. Thisalled as E-filing of audit reports.


Modification in the ITR Form-6

The income tax department has made various changes in the ITR Form-6. The modifications that are made are as follows:

  • Details of recognition as a start-up by DPIIT
  • Details of declaration filed in Form-2
  • Bifurcation of donations into cash and non-cash mode of payment
  • Information on turnover/gross receipts reported for GST

Conclusion

Companies also need to file an income tax return under the income tax department. For filing income tax return the companies need to fill ITR Form 6. This form can not be filled by the companies who claim exemption under section 11 that is who have income for holding properties for charitable and religious purposes.


Frequently Asked Questions

Q- Is filing ITR Form is mandatory?

Ans. Yes, to file return of income tax one must fill ITR forms that states detailed information of the taxpayer and his or her tax liabilities and deductions.


Q- What is ITR Form 6?

Ans. ITR Form 6 is a form filed as income tax return by companies stated in income tax act 1961. The companies who claim exemption under section 11 can not filITR Form 6.


Q- Who needs to furnish ITR Form 6?

Ans. The companies other than those companies who claim exemption under section 11 needs to file an income tax return with ITR Form 6.


Q- Who can not filI TR Form 6?

Ans. ITR- 6 Form is not filed by a company who claims for exemption under section 11 that is income from property held for charitable or religious purposes.


CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.