A Step-By-Step Guide to File ITR-6

Income Tax

The Income Tax Act 1961 requires every company to file their income tax return by the end of the financial year. For this purpose, a person needs various documents, as mentioned by the IT department. One of such vital documents is ITR-6. It is applicable for commercial entities not claiming exemption u/s 11, i.e., for income from religious and charitable establishments. 

Read on to learn how to file ITR-6 without any hassle!

How to File ITR-6?

You can easily fill and submit your ITR-6 form online. You just have to download a soft copy, fill in the details and upload it digitally. The steps of how to file ITR-6 are explained below in detail:

Step 1: Provide details mentioned in the form

First, log into the official e-filling portal by entering your PAN details and registered password. There you will find different sections of details divided into Part A, Part B, and Schedules:

Part A – It requires general information regarding your company like name, address, CIN, PAN, registered number, email ID, and incorporation date. 

Part B – Part B asks you for gross income details. However, mention NA in the space if a column does not apply to you. Also, make sure to round off the amount and not provide incorrect details; otherwise, you may be liable for prosecution u/s 277. Also, you don’t need to attach documents with annexure-less form. 

Schedules – This section contains questions like bank details, depreciation submission, balance sheet data, spending, P&L details, deduction availed, tax details and revenue from different sources.

Step 2: Calculate tax

After filling out the ITR-6 form, you can now carry out the tax computation process to determine how much advance tax you have paid and how much more is payable as tax. For better calculation purposes, it is advisable to tally the calculation against Tax Credit Statement Form 26AS. 

If the IT department finds that you have paid more tax than required, it will initiate the refund process after filing your ITR. 

Step 3: Verify your return

The IT Department has made it compulsory to verify returns by providing digital signature. Note that you will receive an acknowledgement number for completing the process.

Step 4: Complete the filing process

Finally, after filling up all the columns and verifying your return, provide the designation of the person certifying the return. Then complete the process by transferring all the data using electronic mode on the official IT website. 

Who Are Eligible to File ITR-6?

As per Section 2(17) of the Income Tax Act, 1961, those companies who are registered under the Companies Act of 1956 and do not claim any exemption under Section 11 must file ITR-6 . Here is what company means:

• An Indian or domestic company
• A body incorporated under and by Indian law. 
• Any association or body, institution, declared by special or general order of the company board. It does not matter if it is incorporated or not, Indian/non-Indian. 

Who Are Not Eligible to File ITR-6?

The following taxpayers are not eligible to file an ITR-6 form:

• Individuals
• Firms
• Body of Individuals (BOI)
• Hindu Undivided Families (HUF)
• Association of Persons (AOP)
• Local authority & artificial judicial person
• A company claiming exemption u/s 11

What Is the Due Date for Filing ITR-6?

The due date for filing ITR 6 in the assessment year 2022-2023 is October 31. If an assessee files after this date, the Income Tax Department will consider it a late filing and charge a late fee according to the delay. However, those taxpayers who have not carried out an audit of their accounts have to file ITR-6 on or before February 15 2022. 

Details of E-filling Audit Reports

Suppose an assessee is liable for auditing his/her books under Section 44AB, and they have completed it with the help of an accountant. In such a case, the person needs to provide information of their auditor, details of the audit report and the date of furnishing the return digitally.  

Key Changes Introduced in ITR-6

Here are the latest changes in the ITR-6 form:

• A separate section is added to incorporate the computation of long-term capital gains on the sale of listed equity shares and business units that are subject to STT or Security Transaction Tax u/s 112A. 
• Under the ‘Filing Status’ section, a new option is available for availing option covered under Section 115BAA/115BAB 
• Provision for providing information about tax-deductible investment/expenses 
• The IT Department requires an assessee to mention tax details concerning the adjustment of the transfer price taking place in the books of accounts u/s 92CR(2A)

Final Word

This is an in-depth guide providing every detail on how to file ITR-6, who should file it, and other information. So, follow these sections thoroughly and complete your filing process before the due date to avoid paying additional charges. 

FAQs on How to Fill ITR-6

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.