The income tax department provides seven different forms to file returns on incomes earned through different sources. ITR 6 is the form which all companies registered under the Companies Act, 1956 and Companies Act, 2013 need to file, regardless of their business structure. However, not all companies need to file income tax returns through form 6. Through this article, we will take a detailed look at what is ITR 6, its applicability, structure and other important details to make the ITR filing process easier.
What is ITR 6 Form?
As stated above, ITR 6 is one of the seven different forms through which the entities in India can furnish their statement of income and tax liability. The motive behind having a separate form applicable to companies is to make the process easier for companies and also other entities such as LLPs and individuals, whose major sources of incomes are completely different from that of a company.
The ITR filing for a salaried employee will not need to have a section for manufacturing and trading accounts. However, for a company it is very important to furnish the details of a balance sheet or the manufacturing account. So, it is better to have a separate form for individuals and companies. The form applicable to companies is ITR 6.
Who needs to file itr 6?
All companies registered under the company laws in India are required to submit their annual returns through form ITR 6. This includes the companies registered under the present law, i.e., Companies Act, 2013 and the prior law in force, i.e., Companies Act, 1956.
However, not all companies are eligible to file the ITR 6. Only such companies which fall under the definition of company as per the Income Tax Act, and are not claiming exemption under section 11 of the Income Tax Act, 1961 can furnish returns though ITR 6.
Who cannot file ITR 6?
Any of the following is not eligible to furnish their returns through itr form 6:
- An entity not falling under the definition of a company as per section 2(7) of the Income Tax Act, 1961; and
- Any company or entity claiming exemption under section 11.
What is the exemption under Section 11?
Section 11 of the Income Tax Returns Act, provides exemption for income earned from property owned for charitable or religious purposes in India. For all entities that earn income through property held for charitable purposes, ITR form 7 is applicable. For more information, refer to What is ITR 7? So, all companies who own such properties and earn income through such property, cannot furnish their income tax returns through the ITR 6 form.
What is ITR 6 format?
The ITR 6 form is divided into three different parts, Part A, Part B and Schedules thereto. The list below gives a brief idea on what each part consists of:
- Personal information: name, PAN and other details of the company and authorised persons;
- Balance Sheet;
- Manufacturing Account;
- Trading Account; and
- Profit and Loss Account.
- House Property;
- Capital Gains; and
- Income from other sources;
- Computation of Total Income; and
- Total Tax Liability.
The ITR 6 filing process is conducted online with the verification through a digital signature certificate. You need to visit the tax e-filing portaI. t is advised by the Income Tax Department that the following sequence is used in filing the form:
- Part A;
- Schedules; and
- Lastly, Part B.
Key Takeaway: Companies that are subject to mandatory audit under section 44AB need to submit the Audit Report electronically while filing the income tax return. The mandatory audit is applicable only when the turnover of business in previous year is more than Rs. 1 crore.
What are the documents required to file ITR 6?
The following documents are required to be able to compute the total tax liability of a company:
- Tax Deducted at Source (TDS) Certificate;
- Tax Audit Report;
- Financial Statement;
- Form 26 and Form 26AS;
- Bank Statement; and
- Capital Gains.
Pro Tip: The form ITR 6 is an annexure less form. You do not need to submit any of these documents with the form. If an assessee submits such documents they are returned back to him.
What is the due date for filing ITR 6?
There are three different due dates applicable on the basis of following requirements:
- In cases where audit is applicable: 31st October of the Assessment Year;
- When audit is not applicable: 31st July of the Assessment Year; and
- Where the companies need to furnish form 3CEB: the due date for filing is 30th November of the Assessment Year.
Also Read: How to file ITR 5 online?
One person companies, Public companies and Pvt Companies all registered under the companies act are required to submit their income tax returns through ITR 6 form. It is very important for companies to file timely returns in order to avoid hefty charges that might hamper growth of the business. Experts at legalwiz.in can not only help you in filing the income tax returns , but also in figuring out which income tax form is applicable to you. Contact us today!