The ITR 6 form is an income tax form that should be used by businesses that do not qualify for Section-11 exemptions.
Companies that can claim Section-11 exemptions are those that hold their property income for religious or charitable purposes.
Who is eligible to file Form ITR 6?
Every company, regardless of structure, that is registered under the Companies Act 2013 or the earlier Companies Act 1956 must file an ITR 6 Form. Companies whose income is derived from property held for religious or charitable purposes, on the other hand, are exempt from filing ITR 6 Form. If the entity’s sales, turnover, or gross receipts exceed Rs.1 crore in the previous fiscal year, the accounts must be audited by a certified Chartered Accountant.
Who is ineligible to file Form ITR 6?
Companies that receive income from religious or charitable organisations are eligible for Section 11 exemption. In other words, an entity seeking Section 11 exemption should not file ITR 6 Form.
What is the ITR-6 Form’s structure?
The Form is divided into two sections and several schedules:
Part A: Basic information
Part A-BS: Balance Sheet as of March 31, 2021
Part A-BS-Ind AS: Balance Sheet as of March 31, 2021, or as of the date of the business combination
Part A- Trading Account for 2020-21 fiscal year
Part A-P&L: Profit and Loss Account for 2020-21 fiscal year
Part A-Manufacturing Account-Ind AS: Manufacturing Account for 2020-21 fiscal year
Part A-Trading Account Ind-AS: Trading Account for 2020-21 fiscal year
Part A-P&L Ind-AS: Profit and Loss Account for 2020-21 fiscal year
Part A-OI: Additional information
Part A-QD: Quantitative information
Part A-OL: Receipt and payment account of a liquidated company Schedules are as follows:
Part B-TI: Total Income Calculation
Part B-TTI: Calculation of total income tax liability Taxes paid:
The 42 schedules are as follows:
Schedule-HP: Income computation under the heading Income from House Property
Schedule-BP: Income computation under the heading “profit and gains from business or profession”
Schedule-DPM: Depreciation on plant and machinery under the Income-tax Act
Schedule DOA: Depreciation on other assets under the Income-tax Act
Schedule DEP: Depreciation summary on all assets under the Income-tax Act
Schedule DCG: Depreciation on sale of depreciable assets
Schedule ESR: Section 35 Deduction (expenditure on scientific research)
Schedule-CG: Income computation under the heading Capital Gains
Schedule-OS: Income from other sources computation.
Schedule-CYLA: Income statement after deducting current-year losses
Schedule-BFLA: Income statement after deducting unabsorbed losses carried forward from prior years.
Schedule- CFL: Statement of losses to be carried forward to future years.
Schedule -UD: Details of unabsorbed depreciation and allowance under Section 35
Schedule ICDS: The Impact of Income Computation Disclosure Standards on Profit
Schedule- 10AA: Deduction computation under Section 10AA
Schedule- 80G: Information about donations eligible for a tax deduction under Section 80G.
Schedule 80GGA: Donations for scientific research or rural development
Schedule RA: Information on donations to research organizations, etc.
Schedule- 80IA: Deduction computation under Section 80IA
Schedule- 80IB: Deduction computation under Section 80IB
Schedule 80IC or 80IE: Deduction computation under Section 80IC or 80IE
Schedule-VIA: Statement of Chapter VIA deductions (from total income).
Schedule-SI: Statement of income subject to special taxation.
Schedule PTI: Enter income information from a business trust or investment fund.
Schedule-EI: Income Statement Not Included in Total Income (exempt incomes)
Schedule-MAT: Calculation of the Minimum Alternate Tax under Section 115JB
Schedule-MATC: Tax credit computation under Section 115JAA
Schedule BBS: Details of tax on distributed income of a domestic company on share buybacks that are not publicly traded.
Schedule TPSA: Secondary adjustment to transfer price in accordance with Section 92CE
Schedule FSI: Information on income earned outside of India and tax breaks
Schedule TR:A summary of tax breaks claimed for taxes paid outside of India
Schedule FA: Information on foreign assets and income earned outside of India.
Schedule SH-1: Unlisted Company Shareholding
Schedule SH-2: Start-up Shareholding
AL-1: Assets and liabilities at the end of the fiscal year
AL-2: Assets and liabilities at the end of the fiscal year (applicable for start-ups only) GST Schedule: Information on turnover/gross receipts reported for GST. Schedule FD:
Payment/receipt breakdown in foreign currency
What is the procedure for submitting ITR Form 6?
The income tax department advises taxpayers to file ITR Form 6 in the following order when filing an income tax return:
● Part A
● Schedules
● Part B
● Verification
When is the deadline for submitting ITR Form 6?
The deadline for filing ITR Form 6 for the purpose of filing an income tax return is September 30th. If an assessee files the form after this date, it will be considered late and subject to a late fee.
Changes to the ITR Form-6 in 2020-21
The following are the major changes to the ITR-6 Form in fiscal year 2020-21:
● A separate schedule 112A for calculating long-term capital gains on the sale of STT-liable equity shares or units of a business trust.
● Section 92CE tax details on secondary adjustments to transfer price (2A).
● Details of tax deduction claims for investments, payments, or expenditures made between April 1, 2020, and June 30, 2020.
Conclusion
Companies must also file income tax returns with the income tax department. Companies must complete ITR Form 6 in order to file income tax returns. This form cannot be completed by companies that claim exemption under Section 11, i.e, companies with income from holding properties for charitable and religious purposes