A Complete Guide to file ITR-6 for AY 2024-2025

The Central Board of Direct Taxes (CBDT) issued the Guidelines ITR-6 return filing to help the taxpayers for filing the particulars in Income-tax Return Form-6 for the Assessment Year 2024-2025 relating to the Financial Year 2023-2024. The ITR 6 Form is for companies that are not claiming exemption under section 11 of the Income Tax Act. Companies claiming exemption under section 11 are those whose income from the property is held for charitable or religious purposes. The current article briefs the Guidelines for ITR 6 online filing for AY 2024-2025. IndiaFilings helps you to file ITR-6 for the AY 2024-2025 with expert assistance!! [shortcode_25]

What is ITR-6?

ITR-6 is an income tax return form specifically designed for companies in India. It's used by companies, excluding those claiming tax exemption for religious or charitable purposes, to report their income and claim deductions for the financial year. Essentially, it's the document companies use to declare their taxable income to the Indian government.

ITR 6 is for whom?

The ITR 6 form for AY 2024-2025 is to be filed by the following persons

A company as per section 2(17) of the Income Tax Act
This form is filed by a company other than a company which is required to file a return in Form ITR-7

Note on section 2(17) of the Income Tax Act

According to section 2(17) of the Income Tax Act, the companies eligible to file ITR 6 For is as follows:

Indian Company (Domestic Company)
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

Companies exempt from filing ITR-6

Companies claiming exemptions under Section 11 are not required to file ITR-6.

Religious Institutions: Temples, mosques, churches, gurudwaras etc., though not companies themselves, can claim exemption under Section 11 if they meet specific criteria. These criteria include registration under relevant acts and utilizing income solely for religious purposes and charitable activities.
Charitable Trusts: Established for philanthropic goals like education, healthcare, poverty alleviation etc., trusts can claim exemption under Section 11. The income must be genuinely applied towards these charitable purposes.
Political Parties: Registered under the Representation of the People Act, 1951, political parties are exempt from paying certain taxes on their income under Section 13A.
Societies: Registered under the Societies Registration Act, non-profit societies involved in education, healthcare, cultural promotion, sports etc., might be eligible for tax exemptions under different sections depending on their specific activities. Section 11 applies if their activities align with religious or charitable purposes.
Section 8 Companies: Formed specifically to promote charitable endeavors, social welfare, or other non-profit goals, these companies can claim exemptions under Section 11. However, they must adhere to stricter regulations than regular companies.

E-filing of audit reports under Section 44AB

Suppose an assessee is liable for audit under Section 44AB and the accountant audits. In that case, the details regarding the audit must be furnished to the department electronically, along with the income tax return. This can be done by the taxpayer with the help of a Chartered accountant.

Procedure for filling and verification of ITR-6

The applicant can do the ITR 6 online filing electronically on the e-filing web portal of the Income-tax Department and verify by way of digital signature only. Here are the brief procedure for an ITR 6 online filing,

1. Login:

Visit the Income Tax Department's e-filing portal
Enter your valid User ID (PAN) and password to log in. You'll need to do so if you haven't registered yet.

2. Go to 'File Income Tax Return':

Once logged in, locate the section for filing income tax returns. This might be labeled "e-File" or "Income Tax Return" depending on the portal's layout.

3. Select the Assessment Year (AY):

Choose the relevant assessment year (AY) for filing the ITR. The AY is based on the financial year you're reporting income (previous year + 1). For example, if you file for income earned between April 1, 2023, and March 31, 2024, the AY would be 2024-25.

4. Select Status and ITR Type:

Here, you'll specify your filing status. Since you're filing for a company, it likely won't be "Individual." It could be "Company" or another category, depending on your business structure.
Then, choose the ITR form type. Select "ITR-6" from the available options.

5. Reason for Filing:

Indicate the reason for filing the ITR. This could be "Original Return" if it's the first time you're filing for the AY, or "Revised Return" if you're correcting a previously filed return.

6. Pre-filled Information:

The portal might pre-fill some information based on your previous filings or information received from third parties (like tax deducted at source - TDS). Carefully review this pre-filled data.
Edit any pre-filled information that's inaccurate or incomplete.

7. Fill ITR-6 Form: The applicant is required to furnish the following details in the income tax return Form-6 (ITR-6),

General Information of the company
Audit Information
Filing and Holding Status
Details of Business Organization
Shareholders information and Ownership Information
Nature of Company
Nature of Business
Details of the Balance Sheet
Manufacturing Account Details
Trading Account Details
Details of the profit and loss account
Details of income from the business of plying, hiring, or leasing of goods carriages on a presumptive basis as per section 44AE.
Details of income comprise solely of profits and gains from a business referred to in sections 44B, 44BB, 44BBA or 44BB
Quantitative details of trading and manufacturing account
Details of allowances & disallowances under Income Tax Act
Quantitative details of trading and manufacturing account
Details of Income from House Property
Computation of income from business or profession
Computation of depreciation admissible under the Income-tax Act
Computation of depreciation admissible under the Income-tax Act
Summary of depreciation admissible under the Income-tax Act
Summary of deemed short-term capital gains on the sale of depreciable assets
Details of expenditure on scientific research etc. referred to in section 35, expenditure on agricultural extension projects referred to in section 35CCC of Income Tax Act and expenditure on skilled development project referred to in section 35CCD of Income Tax Act
Capital gains arising from sale/transfer of different types of capital assets
The scrip wise/unit wise detail of the sale of equity shares of a company, an equity-oriented fund, or a unit of a business trust on which STT is paid under section 112A of Income Tax Act
Details of Income from other sources
Details of Income after set-off of current year losses
Details of Income after Set off of Brought Forward Losses of earlier years
Details of Losses to be carried forward to a future year
Unabsorbed depreciation and allowance under section 35(4) of Income-tax Act
Effect of Income Computation Disclosure Standards on profit
Deduction in respect of units located in Special Economic Zone
Details of donations entitled for deduction under section 80G of Income-tax Act
Details of donations for scientific research or rural development
Details of donations to research associations etc. [deduction under sections 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)]
Details of deduction under the sections 80-IA/ 80-IB/ 80-IC and 80-IE of Income-tax Act
Deductions under section 80P of Income-tax Act
Details of deduction claimed under various provisions of Chapter VI-A during the year
Income chargeable to tax at special rates
Information regarding partnership firms in which the applicant is a partner
Details of Exempt Income (Income not to be included in Total Income or not chargeable to tax)
Details of Income from outside India and tax relief
Pass-Through Income/loss details from business trust or investment fund as per section 115UA, 115UB
Computation of Minimum Alternate Tax payable under section 115JB
Computation of tax credit under section 115JAA
Details of tax on distributed profits of domestic companies and its payment
Details of tax on distributed income of a domestic company on buy-back of shares
Details of Shareholding of Start-ups (which has filed a declaration in Form-2 with DPIIT)
Assets and liabilities as at the end of the year (for an unlisted company other than the start-up
Information regarding turnover/gross receipt reported for GST
The break-up of payments/receipts in foreign currency
Computation of total income
Computation of tax liability on total income
Assets and liabilities as at the end of the year (for a start-up which has filed a declaration in Form-2 with DPIIT only)
Details of payments of Advance Tax and Self-Assessment Tax
Details of Tax Deducted at Source of income
Details of Tax Collected at Source (TCS
Quantitative details of trading and manufacturing account

8. E-verification:

Once you've completed filling out the ITR-6 form, you'll need to verify it electronically. The portal will provide various e-verification methods like Aadhaar OTP, digital signature certificates, etc.
Choose a convenient method and follow the on-screen instructions to sign the ITR, making it a valid submission electronically.

Format of ITR 6 Form

Here is the ITR 6 Form for your reference,

Due Date for filing ITR-6

ITR 6 due date and the common deadline to file ITR-6 without a late fee is July 31, 2024. The ITR-6 form is activated on the income tax e-filing website. Use that to file ITR 6 before the last date. File your ITR-6 for the AY 2024-2025 before the due date with IndiaFilings experts!! [shortcode_25]

Key changes in the ITR-6 for AY 2024-2025

Legal Entity Identifier (LEI): Companies seeking a tax refund of Rs. 50 crore or more must now furnish their LEI details.
Tax on Accreted Income (New Schedule 115TD): A new schedule captures details for reporting tax payable on accreted income, applicable to entities losing eligibility for tax exemptions.
Capital Gains Accounts Scheme (CGAS): ITR-6 now requires additional information on deposits made to CGAS, including the date, account number, and IFS code.
Political Party Donations (New Schedule 80GGC): Details of contributions to political parties are required, including a breakdown by mode (cash/other) and transaction reference numbers.
Start-up Deductions (New Schedule 80-IAC): Companies claiming deductions under Section 80-IAC must provide details like incorporation date, nature of business, and certificate number.
Offshore Banking Unit/IFSC Deductions (New Schedule 80LA): Companies claiming deductions under Section 80LA must furnish details such as entity type, income type, registration details, and the first year of claiming deduction.
Payments to MSMEs beyond Time Limit: Information on any payments exceeding the time limit specified in the MSME Act, disallowing deduction under Section 43B, is required.
Online Gaming Winnings: Schedule OS is amended to capture income from online games taxable under Section 115BBJ.
Dividend Income from IFSC Units: Schedule OS reflects the reduced tax rate of 10% for dividend income received from a unit located in an IFSC.
Due Date for Return Filing: A new column requires selecting the applicable due date for filing the return (October 31st or November 30th).
Audit Report Acknowledgement & UDIN: Companies undergoing audits must now furnish the audit report's acknowledgement number and the UDIN.
Micro or Small Enterprise Recognition: Companies must specify their recognition status under the MSME Act and provide the registration number.
Reason for Tax Audit under Section 44AB: Companies subject to audit under Section 44AB must furnish the reason for the audit (exceeding turnover limits, opting out of presumptive taxation, etc.).