Filing your income tax return (ITR) is mandatory irrespective of your income source and amount. However, what's more important is filling in a correct return. There are numerous rules and forms that you need to be mindful of to ensure you file an accurate tax return.
While it is possible to rectify your ITR after filing it, it is best to ensure accuracy from the get-go to avoid any hassles. Among the many things you need to remember is the form that you need to file.
ITR forms are classified based on your income and exemptions. The Income Tax Department has put forth seven forms labelled ITR 1, ITR 2, ITR 3, and so on. Read on to learn what ITR 6 means, its due date, how to file it, and more.
Filing ITR is mandatory for every citizen, corporation, body, company, and other entity as specified by the Income Tax Department. However, not all entities have to file the same tax form. Different entities have different forms depending on their income source, deductions, exemptions, and more.
ITR 6 is one such form applicable to companies. However, it is not applicable to all companies. Only those who claim deductions under section 11 of the Income Tax Act need to file ITR 6.
You can check which form is applicable to you by visiting the official income tax website. Choose the tab applicable to you, and click on the ‘Return Forms’ section on the page.
ITR 6 is for companies that do not claim deductions u/s 11. This means that companies claiming the deductions under this section are automatically ineligible for filing.
Section 11 offers deductions for companies that have income from properties held for charitable or religious purposes. Following are the entities included under companies as per the Income Tax Department:
Body corporate incorporated by or under the laws of a country outside India
Any institution, association or body, whether incorporated or not and whether Indian or Non-Indian, which is declared by general or special order of the Board, to be a Company, etc.
Accurate return filing is essential in ensuring you do not have to rectify your returns later on or pay the penalty for late filing. If you are wondering how to file ITR 6, the answer is simple – you can do it online and offline.
Keep in mind that you need to verify the ITR electronically through a digital signature.
Following are the steps on how to file ITR 6 online:
Step 1: Visit the official Income Tax website
Step 2: Register/ Login with your credentials
Step 3: Choose filing type and form (ITR 6)
Step 4: Fill in the form with accurate details
Step 5: Cross-verify all your information
Step 6: Verify your form
Step 7: Download ITR-V as proof of return filing
On the other hand, learning how to file ITR 6 offline can be complicated. The process requires you to download the common utility tool, and use it to fill the form. If you plan to go this route, it may be wise to avail the services of a professional CA.
Be sure to complete the ITR 6 online filing or offline filing before the due date to avoid any penalties. You can check the ITR 6 due date on the official website. Remember, the department may change the due date.
ITR 6 is a lengthy form, and as such, you need to ensure utmost accuracy at the time of filling it. The form structure can be divided into three parts, as mentioned below:
Here you will have to mention personal information and business/company information. This includes trading accounts, balance sheets, P and L accounts, manufacturing accounts and more.
This section will be for your total income (TI) and tax on total income (TTI). You will have to fill in all the schedules under this section accurately.
Once you cross-verify your information, you will have to verify your return. Remember that the verification of ITR 6 has to be through an electronic digital signature.
Now that you know the details and the steps for ITR 6 online filing process, be sure to file the returns before the due date. Delayed return filing is subject to penalties, which can include fines and imprisonment.
ITR 6 is the form that companies need to use for return filing if they are not claiming exemptions under section 11. Exemption u/s 11 is for companies that have income from properties held for religious or charitable purposes.
ITR 6 filing requires no documentation as it is an annexure-less return form. However, you should cross-check the TCS/TDS details in the ITR with Form 26AS to ensure accuracy.
ITR 6 form is available for companies that do not claim exemptions under section 11 of the Income Tax Act.
Companies can file ITR 6 on the official website by downloading and uploading the form or electronically filling out the form. Remember, you can complete verification only through a digital signature.