What is ITR 6? Applicability and How to File It?
Income tax return filing is a crucial activity for Indian businesses. The Central Board of Direct Taxes (CBDT) significantly altered the ITR-6 form. When a business does not meet the conditions set out in Section 11 of the Income Tax Act, it must file an ITR-6. It is crucial because it deals with the sources of income involving job losses and capital gains. Corporations in the United States and other nations use the form to seek tax relief for religious or charitable purposes. This article has included the details such as applicability, due date, and filing procedure of ITR 6. File your ITRs now with expert guidance from TaxDunia.
Eligibility Criteria
The following entities can make use of the ITR-6 form:
- Domestic Companies:
- The Indian law firms are formed by domestic companies under the Companies Act.
- Law firms that are outside of India but work in India are called “foreign companies.”
- Other Corporate Entities:
- Bodies, associations, or institutions declared by the Board to be companies.
Important Modifications in ITR-6
A lot of big changes have been made to the ITR-6. These changes are meant to make things clearer and easier to follow. Some of these changes are discussed below:
Legal Entity Identifier (LEI):
The LEI is now mandatory for companies to include in the ITR-6 form. It is one of the measures to increase financial transparency and regulatory scrutiny.
Micro, Small, or Medium Enterprise (MSME) Recognition:
Disclosure of MSME registration status is mandatory. Additionally, there is a requirement to disclose payments made beyond the time limit to MSMEs.
Reason for Tax Audit under Section 44AB:
Companies must provide reasons for undergoing a tax audit under Section 44AB. This includes audits under Section 92E.
Acknowledgement Number and UDIN for Audit Reports:
Firms need to provide the Unique Document Identification Number (UDIN). the acknowledgment number for the audit report to talk about an audit.
Winnings from Online Games (Section 115BBJ):
Online game winnings are taxable under Section 115BBJ and have to be reported in ITR-6.
Reporting Dividend Income from the International Financial Service Centre (IFSC):
Dividend income from units placed in IFSCs is taxable at a reduced rate of 10 percent instead of 20 percent. This change is reflected in Schedule OS of the ITR-6 form.
Schedule-CG Disclosure of Capital Gains Accounts Scheme (CGAS):
The form includes a new schedule for disclosing capital gains under the CGAS.
Schedule 115TD (Accreted Income):
A new schedule has been included for reporting tax payable on accreted income. This involves information like the calculation of accreted income and challans of tax payment1.
Schedules 80GGC, 80-IAC, and 80LA:
New or changed schedules need to be used to report donations to political campaigns and deductions for new businesses.
Company’s Due Date for Filing Return:
A new column has been included so that the due date for filing returns can be specified. The intention is to bring greater clarity and compliance to corporate tax returns. The filing due date for ITR-6 for AY 2025-2026 is July 31, 2025, for non-audit companies. In case of an audit, the due date is November 15, 2025.
Supporting Documents
- Ensure the availability of the following documents before availing of the e-Return form:
- Balance Sheet and Profit and Loss Account
- Information regarding T.D.S. and Advance Tax paid.
- Capital Gains Statements: Information on capital gains or losses.
- MSME Registration Certificate: If applicable.
- LEI Certificate: If applicable.
Filing Process
Companies not claiming exemption under Section 11 of the Income Tax Act use the ITR-6. This covers the majority of international, public limited, and private limited companies. Filing it online is covered in this step-by-step manual:
Go to the e-Filing Portal
- Visit the Income Tax Department’s official homepage at https://www.incometax.gov.in.
- Log in with the company’s PAN (as User ID), password, and captcha code.
Navigate to e-File > Income Tax Return
Choose the relevant Assessment Year, for example, 2024–25 for FY 2023–24. Select Form ITR-6.
Select Filing Mode
Choose either the offline tool (Excel/Java-based) or the online form. If filing offline, download the tool.
Provide the Information
- If relevant, provide corporate information, income sources, balance sheets, profit & loss, tax deductions, and audit data.
- Verify ITR-6 using a Digital Signature Certificate registered with the site.
- Using DSC, submit the return and confirm. ITR-V will be produced.
- Usually, the due date is 31st October of the Assessment Year.
Fill ITR-6 Form:
Besides tax deductions and account statements, submit any new data you possess, like your LEI and MSME registration.
Tips for Successful Filing
- Ensure Accuracy: Double-check all tax and financial information.
- Consult Professionals: If in doubt about anything, seek a tax advisor.
- Keep Records: Keep detailed records of all documents and filings.
Get Started with TaxDunia
Filing ITR-6 requires knowledge of the new changes and a systematic procedure. You can meet tax requirements and avoid penalties if you are ready with all the necessary paperwork and meet all the due dates. Always seek the advice of tax professionals in case you face any difficulty while filing. Reach out to TaxDunia to file your returns and get the best advice to ensure the consistent growth of your business.
