ITR-6: Tax Filing for Companies
ITR-6: A Practical Guide for Companies
ITR-6 is the income tax return form for companies registered in India. It is for companies that are not claiming exemption under Section 11 (charitable or religious trusts). Indian private and public companies use ITR-6 for annual tax filing.
This guide explains who can use ITR-6 and how.
What Is ITR-6?
ITR-6 is used by:
- Private limited companies
- Public limited companies
- One Person Companies (OPCs)
- Section 8 companies (in some cases)
The form does not apply to trusts under Section 11.
Who Cannot Use ITR-6?
ITR-6 is not for:
- Charitable or religious trusts under Section 11 (use ITR-7)
- Firms or LLPs (use ITR-5)
- Individuals (use ITR-1 to ITR-4)
Match the form to your entity type.
Why ITR-6 Matters
ITR-6 matters for three reasons:
- It is mandatory for companies
- It supports detailed financial disclosures
- It is needed for corporate tax compliance
A clean ITR-6 filing supports legal and financial health.
What ITR-6 Covers
The form has sections for:
- Company details
- Profit and loss account
- Balance sheet
- Shareholder details
- Director details
- Audit information
- Tax computation
- Dividend distribution
- Transfer pricing (if applicable)
The structure is comprehensive.
How to File ITR-6
A common method:
- Log in to the income tax portal
- Select ITR-6
- Add financial statements
- Provide director and shareholder details
- Compute tax and pay if due
- Submit and verify with DSC
DSC is mandatory for ITR-6.
Documents Needed
Common documents:
- Company PAN
- Profit and loss statement
- Balance sheet
- Audit report
- Director and shareholder details
- Tax audit report (if applicable)
- TDS certificates
- GST returns
The list is detailed.
Benefits
ITR-6 offers:
- Proper corporate disclosure
- Compliance with company law
- Clear shareholder reporting
- Tax law compliance
These benefits suit company filings.
Tax Rates for Companies
Companies pay:
- Domestic companies: 25 percent or 22 percent (special rate under Section 115BAA)
- New manufacturing companies: 15 percent under Section 115BAB
- Foreign companies: 40 percent
- Plus applicable surcharge and cess
Choose the right tax regime carefully.
Audit Requirements
All companies need:
- Statutory audit under the Companies Act
- Tax audit under Section 44AB (if turnover exceeds limits)
- Transfer pricing audit (if applicable)
A CA is essential for ITR-6.
Common Mistakes
Filers often:
- Miss transfer pricing disclosures
- Skip schedule details
- Misclassify income
- Forget MAT calculations
A clean check avoids these errors.
Tips for Better Use
A few habits help:
- Keep books updated all year
- Coordinate with auditors early
- Plan tax optimisation
- Reconcile GST with ITR
- File on time
ITR-6 vs ITR-7
The two differ:
- ITR-6: companies (not claiming Section 11)
- ITR-7: charitable trusts and similar entities
Use ITR-6 unless your company qualifies for Section 11.
ITR-6 vs ITR-5
The two differ:
- ITR-5: firms, LLPs, AOPs
- ITR-6: companies
Match the form to your registration.
ITR-6 Due Date
For companies:
- With audit: October 31 of the assessment year
- For transfer pricing: November 30
Companies usually need audits.
Verification of ITR-6
ITR-6 must be:
- Verified with DSC (Digital Signature)
- Submitted electronically only
DSC is essential.
ITR-6 and MAT (Minimum Alternate Tax)
MAT applies when:
- Tax under normal provisions is below MAT amount
- 15 percent of book profits plus cess
Most profitable companies must check MAT.
ITR-6 and Dividend Distribution Tax
After 2020 changes:
- No DDT on companies
- Dividends taxed in shareholders’ hands
This changed corporate tax planning.
ITR-6 and Section 115BAA
Companies opting for 22 percent rate:
- Cannot claim certain deductions
- Cannot claim accumulated depreciation
- Once opted, the choice cannot be reversed
Plan carefully before opting.
ITR-6 and Section 115BAB
New manufacturing companies:
- 15 percent rate available
- Strict conditions apply
- Must start manufacturing within set dates
A useful option for new units.
Key Takeaways
- ITR-6 is for companies registered in India
- Not for trusts, firms, LLPs, or individuals
- Requires detailed financial disclosure
- DSC is mandatory for filing
- Indian companies should file ITR-6 with proper audit support
ITR-6 supports complete tax compliance for companies. File carefully, work with auditors, and let proper tax management strengthen your business.
