What is ITR6 and How to File It?

What is ITR6 and How to File It?

Deskera Content Team
Deskera Content Team
Table of Contents
Table of Contents

Filing the tax returns requires you to have complete knowledge of the process. For the convenience of the taxpayers, the Income Tax Department categorizes the ITR forms into seven different types: ITR1, ITR2, ITR3, ITR4, ITR5, ITR6, and ITR7.

What is ITR6 and How to File It?

This article comprises of all the information related to the ITR6. By the end of this article, we should have covered the following points:

  • Brief Look at ITR
  • What is ITR6?
  • Eligibility for filing ITR6
  • Individuals ineligible for filing
  • Structure of ITR6
  • Prominent modifications for the year 2021-22
  • We shall also learn how to fill out and file the ITR6 form
  • We will learn about the important instructions for filing the ITR6

Brief Look at ITR

ITR or the Income Tax Return is the process of filing tax by the eligible taxpayers. The ITR form should be submitted to the Income Tax Department of India. Fundamentally, the ITR form aims at collecting entire information of the taxpayer’s income for a particular fiscal year.

You can log in to the income tax website through the following link:

https://eportal.incometax.gov.in/iec/foservices/#/login

What is  ITR6?_1

What is  ITR6?

All the companies irrespective of their registered structure with the Companies Act 2013 or 1956, must file ITR6.

But we must note that the companies that claim an exemption in accordance with section 11 are not required to file the ITR6 form.

What companies fall under section 11?

The companies who have earnings from a property that carries out religious or charitable causes fall under Section 11. These companies can claim an exemption and are not required to file ITR6.

E-filing of Audit Reports


Assessees subject to audit under Section 44AB and have their accounts audited by accountants must provide the name of the accountant, the date of the audit, and the date of providing the audit to the department electronically.

What is ITR6?_2

Eligibility for filing ITR6 form

ITR 6 Form must be rendered by the companies for the purpose of e-filing of the income tax returns in the case where they don’t claim an exemption under Section 11 of the Income Tax Act 1961.

Individuals Ineligible to File ITR6

The companies that claim an exemption under Section 11 of the Income Tax Act need not file the ITR6.

Structure of ITR6

The structure of ITR6 is constituted by 2 Parts: Part A and Part B. It also has numerous sub-sections. Additionally, there are multiple schedules that aim at acquiring all the information regarding the income of the taxpayer.

Let’s look at the details in this table:

Part A (along with subsections obtains the following information of the taxpayer)

General Information: This includes Name, PAN, Address, Incorporation Date, CIN, and so on.

Trading Account: This subsection captures the details of the income and expenditure of the firm.

Balance Sheet: Details like liabilities, share capital, current liabilities should be entered here.

Manufacturing Account: In this subsection, you must provide the details related to stock, inventory, the cost of produced goods, and so on.

Profit and Loss Account: This subsection requires the details of the incurred profit or loss of the company in the financial year.

Part B (along with its subsections)

Part B-TI: Calculating the Total Income

Part B-TTI: Calculating the tax liability

Schedules

Purpose


Information of the Bank account 

Schedule –HP

Calculating income under the head Income from House Property

Schedule –BP

Calculating earning for the head “profit and gains from business and profession

Schedule –DPM

Computing plant & machinery depreciation

Schedule –DOA

Summarizing asset depreciation

Schedule –DCG

Evaluating capital gains from selling depreciable assets

Schedule –ESR

scientific research expenditure

Schedule –CG

Capital gains income

Schedule –OS

Earnings from other sources

Schedule –CYLA

Income from setting off the current year's loss

Schedule –BFLA

Income from setting off the previous year’s unabsorbed loss 

Schedule –CFL

Losses carried forward to next year

Schedule –UD

Unabsorbed depreciation and allowance

Schedule –ICDS

Calculating income from disclosure standards on profit

Schedule –10AA

Deductions u/s 10AA

Schedule –80G

Details of deduction u/s 80G (donations)

Schedule –80 GGA

Details of donations made for rural development and scientific research

Schedule –VIA

Deductions on the total income under chapter VI-A

Schedule –SI

Information about the Chargeable Income at special tax rates

Schedule –PTI

Information of passing through income from an investment fund or business trust

Schedule –EI

Exempted income details

Schedule –MAT

Information related to tax payable u/s 115JB

Schedule –DDT

Details of the dividend distribution tax

Schedule –BBS

Information of the tax distributed income for buying back the shares

Schedule –ESI

foreign incomes and related tax relief information

Schedule –IT

self-assessment tax and advance-tax paid details

Schedule –TDS

Details of TDS on incomes other than salaries

Schedule –TCS

Information of Tax collected at source (TCS)

Schedule –FSI

Details of Accrued income outside India

Schedule –TR

tax relief claimed against the tax paid (foreign)

Schedule –FA

Foreign income and foreign assets

Schedule –SH1

Information of the (unlisted company) shareholding 

Schedule –SH2

Information of start-ups’ shareholding

Schedule –AL1

Complete information of the assets and liabilities at the year-end

Schedule –GST

Information of reported turnover for GST

Schedule –FD

Any foreign currency receipt or payment

Prominent Modifications in ITR6 for the Year 2020-21

In AY 2020-21, the following key changes were made to the ITR-6 Form:

  • Schedule 112A is a separate schedule for evaluating the long-term capital gains on the sale of equity shares or units of a business trust that are subject to STT.
  • Section 92CE(2A) provides details about the secondary adjustments to transfer prices.
  • Information about tax deductions for investments or payments or expenditures made between 1 April 2020 and 30 June 2020.
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How to Fill out the ITR6?

You can follow the sequence described here for filing ITR6. This is the recommended sequence by the Income Tax Department for filing.

  • Part A along with all its subsections followed by All the Schedules
  • Part B along with all its subsections followed by the Verification

How to File ITR6?

In order to file this income tax return online, the taxpayers must attach their digital signature. ITR 6 Form is a form that is devoid of any annexures and appendices. When filing Form ITR 6, no document needs to be attached. Tax deducted, collected, and remitted data must be calculated based on Form 26 AS.

Instructions for Filing ITR6

Let’s look at the instructions for filing the ITR6 form:

  • Be sure to sign the verification before providing the return.
  • The Verification document must be filled out with all required information. Remove any information that isn't relevant.
  • Specify the designation of the person signing the return.
  • If a false statement is made by any person in the return, it may lead to prosecution under section 277 of the Income Tax Act, 1961.

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Key Takeaways

Before we wrap up the article, let’s take a quick look at the key points discussed:

  • For the convenience of the taxpayers, the Income Tax Department categorizes the ITR forms into seven different types: ITR1, ITR2, ITR3, ITR4, ITR5, ITR6, and ITR7.
  • All the companies irrespective of their registered structure with the Companies Act 2013 or 1956, must file ITR6 except the ones claiming exemption under Section 11.
  • The structure of ITR6 is constituted by 2 Parts: Part A and Part B with the respective subsections.

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