ITR Series: Day 13: ITR-6 – The Corporate Tax Return for Companies

When it comes to companies, whether private, public, or foreign, ITR-6 is the go-to income tax return. It’s comprehensive, detailed, and mandatory for most corporate entities not claiming exemption under Section 11.

Let’s simplify this robust and highly regulated return form.

Who Can File ITR-6

ITR-6 must be filed by:

• All companies registered under the Companies Act (Indian or foreign)
• Companies engaged in trading, manufacturing, finance, services, etc.
• Private Limited, Public Limited, One-Person Companies (OPCs)
• Foreign companies operating in India (not claiming Sec 11 exemption)

Who Cannot File ITR-6?

ITR-6 does not apply to:

• Companies claiming exemption under Section 11 (income from property held for charitable/religious purposes) – such entities file ITR-7
• LLPs and Firms – use ITR-5
• Individuals, HUFs, AOPs, BOIs – use ITR-1 to ITR-4, ITR-5 accordingly

Key Structure 

Being a return for companies, ITR-6 contains exhaustive schedules:

1. Part A – General Info, P&L, Balance Sheet, Manufacturing A/C
2. Part B – Computation of Total Income and Tax
3. Schedule BP – Income from Business/Profession
4. Schedule DPM/DOA/DEP – Depreciation Schedules
5. Schedule ICDS – Adjustments as per Income Computation Disclosure Standards
6. Schedule MAT/MATC – Minimum Alternate Tax & Credit
7. Schedule AL – Assets and Liabilities (mandatory if income > INR 1 crore)
8. Schedule SH, SH1, SH2 – Shareholding patterns, including foreign investors
9. Schedule FA – Foreign assets and income
10. Schedules for TDS, TCS, Dividend Distribution, Advance Tax, Deductions, etc.

Important Considerations

• Mandatory e-Filing with DSC: ITR-6 must be filed online and signed using a Digital Signature Certificate
• Tax Audit: Required if turnover crosses INR 1 crore (or INR 10 crore with 95%+ digital transactions)
• MAT (Minimum Alternate Tax): Applies to companies with adjusted book profits—computed in Schedule MAT
• Reconciliation: Income reported must match with GST filings, AIS/TIS, and financial statements
• ICDS Compliance: Income must be adjusted per ICDS norms for tax computation
• Dividend Income: Since DDT (Dividend Distribution Tax) is removed, disclosure of dividend payouts and recipient tax liability is key.

Why ITR-6 Is Highly Complex

• Requires line-by-line reporting of financial statements, adjusted for tax purposes
• MAT computation and MAT credit carry forward are highly detailed
• ICDS adjustments can significantly alter taxable income
• Disclosure of foreign holdings, share capital structures, and related-party transactions
• Alignment with Companies Act compliance and board resolutions

💡Did you know?

Many companies receive notices simply because of mismatch between income tax returns and GST filings or AIS reports. Even an innocent omission in Schedule AL or MATC can trigger scrutiny.

🏁 Final Word

ITR-6 is not just a return, it’s a reflection of your company’s financial discipline. Whether you’re a startup scaling fast, an MNC with global operations, or a company with foreign funding, this return form speaks volumes about your transparency.

🔍 Avoid shortcuts—even small missteps in MAT, ICDS, or foreign asset declarations can attract notices, penalties, or worse—a detailed scrutiny.

✍️ Pro tip: Professional tax and audit assistance is strongly recommended—especially if your company has foreign investors, cross-border operations, or complex capital structures.

 💬 “Compliance isn’t a burden—it’s a badge of trust for your stakeholders.”