ITR-6
ITR-6 is a tax return form companies in India use to file their income tax returns with the Income Tax Department. It requires detailed information on the company's income, expenses, assets, liabilities, and taxes paid. Therefore, filing ITR-6 accurately and on time is essential to avoid penalties and legal issues.
ITR-6 Form Filing
ITR-6 Form is to be furnished by the Companies to e-file the income tax returns if they are not claiming exemption under Section 11 of the Income Tax Act 1961. Under the Income-tax Rules, the Companies that can claim an exemption under section 11 are those that have income from the property that is held for the charitable or religious person.
Hence, ITR-6 is to be filed by the companies that do not claim an exemption under section 11.
Eligibility for filing ITR-6 Form
-
ITR-6 Form is to be filed by every company irrespective of its structure registered under the Companies Act 2013 or the earlier Companies Act 1956. However, the companies whose source of income comes from the property that is held for religious or charitable purposes are not required to file ITR-6 Form.
-
If the sales, turnover, or gross receipts are more than Rs.1 crore in the preceding financial year the entity must get the accounts audited from a certified Chartered Accountant.
Who is not eligible to file ITR-6 Form?
The companies who have sources of income from religious or charitable organizations can seek exemption under Section 11. In simpler words, an entity that is seeking exemption under Section 11 should not file ITR-6 Form.
Structure of ITR-6 Form-
ITR-6 is divided into Part A and Part B ( along with the sub-sections) with multiple schedules that include information relevant to the income and tax of the taxpayer. Let us have a detailed look at this.
Part A (and its subsections)
General information: This Sub-section should be filed with the basic details of the entity such as the Name, PAN number, address, CIN, Incorporation date, etc.
Trading Account: This sub-section requires the details that are relevant to the income and the expenditure of the company.
Balance sheet: This subsection should consist of the details of the balance sheet of the company such as the liabilities, current liabilities, share capital, and more.
Manufacturing account: This Sub-section required the figures of manufacturing the accounts relating to the inventory such as opening stock, closing stock, and cost of the goods that are produced.
Profit and Loss Account: This subsection should be filed with the details of the company's profit or the loss that is incurred during the relevant financial year.