All About ITR 6 Company Annual Filing | Ebizfiling

  Introduction 

 If a company does not eligible for an exemption under Section 11 of the Income Tax Act of 1961, it must file an ITR 6 Form electronically to file its income tax returns. It is an annual compliance for a Private Limited Company. The companies that receive income from real estate held for charitable or religious purposes are eligible to seek an exemption under Section 11 ((Income from property held for charitable or religious purposes) of the Income-tax Rules. Therefore, companies that do not claim tax exemption under section 11 have to file an ITR 6.




 


 

 What is ITR 6 form? 

 

The ITR 6 form is an electric form filed by companies that do not claim an exemption under section 11 of the Income Tax Rules. It is a form that represents the company's income and expenses for the specific year. It is a mandatory compliance that a Private Limited Company has to file annually.

 

 Who is qualified for filing ITR 6 form? 

 

The following are eligible for filing ITR 6 form:

 

 

  • The entity must have the accounts audited by a certified Chartered Accountant if the sales, turnover, or gross revenues in the previous financial year were greater than Rs.1 crore.

 

 Who is not qualified to file ITR 6 form? 

 

The following are not eligible for filing ITR 6 form:

 

  • Companies that draw their revenue from assets held for charitable or religious reasons are not eligible to file ITR 6 Form. This covers under section 11 of the Income-tax Rules.

 

  • Individuals, associations of persons, bodies of individuals, Hindu- undivided families, local authorities, and artificial judiciary persons are also not eligible for filing ITR 6 form.

 

 Structure of ITR 6 form 

 

ITR 6 is subdivided into 2 parts: Part A and Part B (together with the sub-sections), and it has several schedules that contain data about the taxpayer's income and taxes. Let's explore it in more detail.

 

PART A

 

1. General information- It includes the details of the company such as name, PAN Card number address, CIN, date of incorporation, etc.

 

2. Trading account- It includes the details of the relevant expenditure and expenses of the company.

 

3. Balance sheet- It includes the details of the company such as liabilities, share capital, current liabilities, and more, etc.

 

4. Manufacturing account- It requires the figures of manufacturing the accounts regarding the inventory such as opening stock, closing stock, and cost of the goods which are produced.

 

5. Profit and loss- It includes the details of the company's profit or the loss that is suffered during the particular financial year.

 

PART B

 

  • Part B-TI: Calculation of Total Income.

  • Part B-TTI: Calculation of Tax liability of the Total Income.

 

 Benefits of filing the ITR 6 form 

 

There are several benefits of filing the ITR 6 form by the Private Limited Company. The benefits are as follows:

 

  • Legal document: The ITR 6 form act as legal proof of your income proof because the form shows all expenses and income for the particular year.

 

  • Avoid fines: The ITR 6 form should be filed on or before due dates to escape the penalties incurred when a company does not file the ITR 6 on time.

 

  • Carry forward losses: Companies cannot carry forward the losses of the current year to the next year until an ITR 6 is completed. The income tax law states that if the ITR is not listed by the expected date, taxpayers are not permitted to carry forward losses and deduct them from earnings in the following year. Due to this, it is essential to submit your ITR 6 form on time in order to claim the losses in the following years.

 

 Due date of filing the ITR 6 form 

 

The due date for filing ITR 6 form for the companies is 30th July for whom audit is not applicable. On the other hand, the companies who are applicable for audit have to file ITR 6 form on 30th October.

 

 Penalties for not filing ITR 6 form 

 

When a Private Limited Company fails to file ITR 6 within the specified time then the company is liable to pay a maximum of Rs.5, 000.

 

 Conclusion 

 

The ITR 6 form is submitted to the Income Tax officers through online mode. It is one of the mandatory Private Limited Company compliance. There are two different due dates, when an audit is applicable to the company the date is 30th October, and when an audit does not apply to the company the date is 30th July.  There are certain benefits a company can enjoy when ITR 6 form is filed on time as it act as a legal document, carry forward the losses to the next year, and avoid penalties.  

 

 

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