ITR-6 for Companies: Tax Audit, MAT & Filing Process

ITR-6 is the income tax return form designated for companies under the Indian Income Tax Act, 1961, except those claiming exemption under Section 11. For Assessment Year 2025-26, the form has been updated with several crucial changes that affect audit compliance, MAT calculations, and disclosure requirements. With new reporting fields, revised due dates, and integration of updated Finance Act amendments, corporate taxpayers must stay informed to ensure timely and error-free filing.

The ITR-6 form is mandatory for all companies registered under the Companies Act that do not claim charitable exemptions. It now includes detailed reporting for capital gains, buyback losses, TDS traceability, and MSME classification. Timely tax audit completion and accurate MAT reporting are essential for compliance under the updated structure.

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Table of Contents

• ITR-6 Applicability and Latest Updates for AY 2025-26

• Key Features and New Disclosures in ITR-6 Form

• Tax Audit Requirements for Companies under Section 44AB

• Extended Tax Audit and ITR-6 Filing Due Dates for AY 2025-26

• Minimum Alternate Tax (MAT) – Meaning, Applicability, and Computation

• MAT Credit under Section 115JAA – Carry Forward and Set-Off Rules

• Step-by-Step Process to File ITR-6 Online

• Common Mistakes to Avoid While Filing ITR-6

• How TaxBuddy Simplifies ITR-6 Filing for Companies

• Conclusion

• FAQs

ITR-6 Applicability and Latest Updates for AY 2025-26

ITR-6 is applicable to all companies registered under the Companies Act that are not claiming exemptions under Section 11 of the Income Tax Act, 1961. This means charitable or religious institutions earning income from property held for such purposes are excluded from this filing requirement. For the Assessment Year 2025-26, the Central Board of Direct Taxes (CBDT) has revised the ITR-6 form through Notification No. 44/2025, aligning it with the amendments introduced by the Finance Act, 2024.

The new version of ITR-6 includes enhanced disclosures related to capital gains, buyback of shares, and TDS reconciliation through Form 26AS. Companies must also mention their audit acknowledgement number, MSME classification, and specify the applicable filing due date. These changes aim to promote transparency, improve traceability of transactions, and simplify compliance for corporates.

Key Features and New Disclosures in ITR-6 Form

The updated ITR-6 form has introduced several new disclosure fields to strengthen financial reporting and compliance oversight. Companies are now required to provide:

• Detailed reporting of capital gains before and after 23 July 2024 to match the revised computation rules.
  

• Buyback loss adjustments and related disclosures for accurate profit computation.
  

• TDS mapping with PAN-based traceability through Form 26AS for better reconciliation.
  

• MSME classification to determine the eligibility for benefits and compliance under the MSME Act.
  

• Audit details, including the date of audit completion, UDIN (Unique Document Identification Number), and the auditor’s particulars.
  

These additional disclosures ensure that corporate entities maintain greater accuracy and accountability in their tax filings. They also enable the Income Tax Department to cross-verify data more efficiently, minimizing the chances of scrutiny notices for discrepancies.

Tax Audit Requirements for Companies under Section 44AB

A tax audit under Section 44AB is mandatory for companies whose total sales, turnover, or gross receipts exceed ₹10 crores in a financial year. However, for companies conducting their transactions primarily through non-cash modes, the threshold remains ₹1 crore. The audit ensures that books of accounts are maintained in accordance with prescribed standards and that income and deductions are correctly computed.

The audit must be conducted by a Chartered Accountant, and the report should be uploaded on the Income Tax e-filing portal using the auditor’s UDIN before the due date. Failure to complete the audit within the prescribed timeline attracts penalties under Section 271B. The audit report should include details of all major transactions, related party dealings, and compliance with accounting standards.

Extended Tax Audit and ITR-6 Filing Due Dates for AY 2025-26

For Assessment Year 2025-26, the CBDT has extended the due dates for corporate taxpayers to ease compliance pressures. The tax audit report submission deadline has been extended to November 10, 2025. Subsequently, the deadline for filing the ITR-6 return has been set at December 10, 2025.

These extensions provide companies additional time to reconcile financial statements, complete statutory audits, and ensure error-free filing. However, missing these deadlines can lead to late fees under Section 234F and interest penalties under Section 234A. Companies must plan their compliance calendar well in advance and coordinate with auditors to avoid last-minute delays.

Minimum Alternate Tax (MAT) – Meaning, Applicability, and Computation

The concept of Minimum Alternate Tax (MAT) ensures that companies with substantial book profits do not avoid paying taxes through excessive exemptions or deductions. Under Section 115JB, every company must pay a minimum of 15% of its book profit as MAT, if the normal tax liability is less than this threshold.

Book profit is calculated by adjusting the company’s profit as per the Profit and Loss Account in accordance with the Companies Act, adding back or reducing specific items such as deferred tax, provisions, or revaluation reserves. The MAT computation details must be accurately filled in Schedule MAT of the ITR-6 form. Incorrect MAT reporting can lead to miscalculations in tax credits and trigger notices from the Income Tax Department.

MAT Credit under Section 115JAA – Carry Forward and Set-Off Rules

When a company pays MAT in a financial year, it becomes eligible to claim MAT credit under Section 115JAA. This credit represents the difference between the MAT paid and the regular tax liability, and it can be carried forward for up to 15 assessment years. In subsequent years, if the company’s regular tax liability exceeds the MAT, the credit can be set off against the excess amount.

For instance, if a company pays ₹5 lakh as MAT and its regular tax liability in the next year is ₹8 lakh, it can claim ₹5 lakh as MAT credit, reducing its tax payable to ₹3 lakh. The ITR-6 form provides a dedicated schedule to track these credits and set-offs. Proper maintenance of MAT credit records is essential to avoid mismatches in future assessments.

Step-by-Step Process to File ITR-6 Online

• Prepare financial statements: Ensure all books of accounts, ledgers, and financial statements are audited and verified by a Chartered Accountant.
  

• Compile documents: Collect the audit report, UDIN, PAN, TAN, bank details, and particulars of directors.
  

• Log in to the income tax e-filing portal: Access the ITR-6 utility under the “File Returns” section.
  

• Fill relevant sections: Report income, deductions, TDS, MAT computation, and capital gains as applicable.
  

• Attach audit report: Upload the tax audit report before the due date and link it to the ITR filing.
  

• Verify bank details: Provide operational bank account numbers and, where required, Legal Entity Identifier (LEI) codes.
  

• Validate and submit: Review the data, validate entries, and submit using Digital Signature Certificate (DSC).
  

• Download acknowledgement: Save the generated ITR-V acknowledgement for future reference and compliance verification.
  

Common Mistakes to Avoid While Filing ITR-6

• Incorrect or incomplete reporting of MAT computation and credits.
  

• Missing or invalid UDIN in the audit report submission.
  

• Failing to reconcile TDS data with Form 26AS or AIS.
  

• Providing outdated bank account details or missing LEI codes for high-value transactions.
  

• Ignoring newly added disclosure fields such as MSME classification or buyback losses.
  

• Filing the return without finalizing audited financial statements.
  

Avoiding these mistakes ensures smooth processing of the return and reduces the risk of scrutiny notices from the Income Tax Department.

How TaxBuddy Simplifies ITR-6 Filing for Companies

TaxBuddy simplifies the complex process of ITR-6 filing through its AI-powered platform designed for accuracy and compliance. The platform offers both self-filing and expert-assisted options, allowing companies to choose the mode that best fits their operational needs.

For companies subject to tax audits, TaxBuddy ensures seamless integration of audit reports, automatic MAT computation, and real-time TDS reconciliation with Form 26AS. Its intelligent interface identifies missing details, prevents common filing errors, and keeps track of due dates to avoid penalties. Businesses can also benefit from expert-reviewed filings that guarantee accuracy, timely submission, and complete compliance with the latest tax provisions.

Conclusion

Filing ITR-6 requires meticulous attention to audit details, MAT computations, and disclosure updates introduced for AY 2025-26. Companies must ensure all reports, statements, and schedules are accurately filled before submission. Using digital tax platforms like TaxBuddy can simplify the process through automation, expert review, and real-time data validation.

For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides both self-filing and expert-assisted ITR filing plans, catering to different needs of taxpayers. The self-filing plan uses an AI-driven interface that automatically extracts data from documents like Form 16, PAN, and Aadhaar, and guides users through each step of the filing process. It’s designed for those who prefer independence but still want digital assistance to avoid errors. For companies or individuals with complex income sources such as business profits, capital gains, or foreign income, the expert-assisted plan connects users with certified tax professionals. These experts prepare, review, and file the return, ensuring full compliance with the Income Tax Act.

Q2. Which is the best site to file ITR? The official e-filing portal of the Income Tax Department (incometax.gov.in) is the primary statutory platform for all taxpayers in India. However, many businesses prefer using platforms like TaxBuddy for a more efficient and error-free experience. TaxBuddy’s system integrates automation with professional oversight, reducing manual data entry and minimizing chances of mismatch with Form 26AS or AIS data. Its AI tools also provide real-time validation and ensure every deduction and schedule is correctly reported. For corporate taxpayers, this translates into faster processing, higher accuracy, and fewer compliance errors compared to manual filings on the government portal.

Q3. Where to file an income tax return? An income tax return can be filed either through the official government portal or via an authorized online tax filing platform. The government’s e-filing website allows direct submission for all ITR forms, including ITR-6. Alternatively, TaxBuddy offers a secure and simplified filing experience with step-by-step guidance, automatic data import, and instant compliance checks. Companies often prefer using TaxBuddy because it ensures audit-linked filing, MAT computation, and director details are correctly uploaded without errors. Once the form is filed and verified, an acknowledgment (ITR-V) is generated as official proof of submission.

Q4. Who is eligible to file ITR-6? ITR-6 must be filed by every company registered under the Companies Act, 2013 or any earlier law, except those that claim exemptions under Section 11. Section 11 applies to institutions whose income is derived from property held for charitable or religious purposes. Hence, private limited companies, public limited companies, and one-person companies involved in commercial activities must file ITR-6 each year. It covers all sources of income including business profits, capital gains, interest, and dividends. Filing ITR-6 ensures the company remains compliant with tax laws, enables loss carry-forward benefits, and establishes financial transparency before regulatory bodies.

Q5. What are the due dates for filing ITR-6 for AY 2025-26? For Assessment Year 2025-26, the CBDT has extended the due dates for companies to provide adequate time for audit and filing. The tax audit report under Section 44AB must be filed on or before November 10, 2025, and the ITR-6 return must be filed by December 10, 2025. These deadlines apply to all companies subject to audit under the Income Tax Act. Late submission can attract penalties and interest under Sections 234A, 234B, and 234F. To avoid such penalties, companies should finalize their audited financial statements early and coordinate with their Chartered Accountant for timely submission.

Q6. Is a tax audit mandatory for every company? A tax audit is mandatory under Section 44AB for companies whose total sales, turnover, or gross receipts exceed ₹10 crores in a financial year. However, if 95% or more of transactions are digital (non-cash), the threshold is ₹1 crore. The purpose of the audit is to ensure that the financial statements present a true and fair view and comply with tax laws. The audit must be conducted by a Chartered Accountant, and the report uploaded to the Income Tax Portal using a valid UDIN. Failure to comply can lead to a penalty of 0.5% of turnover or ₹1,50,000, whichever is lower.

Q7. How is MAT calculated in ITR-6? Minimum Alternate Tax (MAT) is calculated under Section 115JB of the Income Tax Act. It applies when the normal income tax liability of a company is less than 15% of its book profit. Book profit is derived from the company’s profit and loss account, prepared as per Schedule III of the Companies Act, after making certain additions (like deferred tax, provisions) and deductions (such as income exempt under Section 10A or 10AA). The resulting figure is multiplied by 15% to compute MAT liability. Companies must report MAT in Schedule MAT of ITR-6, ensuring all calculations are verified by the statutory auditor.

Q8. Can MAT credit be carried forward to future years? Yes, MAT credit can be carried forward for up to 15 assessment years as per Section 115JAA. If a company pays MAT in one financial year because its regular tax liability is lower, it can adjust this credit in subsequent years when the regular tax exceeds MAT. For instance, if MAT paid in FY 2024-25 is ₹5 lakh and regular tax liability in FY 2025-26 is ₹8 lakh, ₹5 lakh can be adjusted, and only ₹3 lakh will be payable. Proper maintenance of MAT schedules and accurate reporting in ITR-6 are essential to claim this benefit.

Q9. What documents are required before filing ITR-6? Before filing ITR-6, companies should prepare the following documents:

• Audited financial statements (Balance Sheet, Profit & Loss Account, Notes to Accounts)
  

• Tax audit report and UDIN from the auditor
  

• Details of directors, shareholders, and authorized signatories
  

• Form 26AS and AIS for TDS and tax payment reconciliation
  

• Bank account details with IFSC and account type
  

• Details of capital gains, depreciation schedules, and carried forward losses
  

• Information on MAT calculations and credits These documents ensure accuracy in reporting income, deductions, and compliance with audit requirements under the Income Tax Act.
  

Q10. How can companies verify their ITR-6 submission? After submission, every company must verify its ITR-6 electronically using a Digital Signature Certificate (DSC) registered on the Income Tax Portal. Once verified, the system generates an acknowledgement known as ITR-V, which serves as proof of filing. Companies should download and securely store this acknowledgment for future reference, especially in case of scrutiny or audit verification. Verification must be completed within 30 days of submission; otherwise, the return is considered invalid. Proper verification ensures that the return is processed by the Income Tax Department and any refund, if due, is released promptly.

Q11. What penalties apply for late filing of ITR-6? Late filing of ITR-6 attracts multiple consequences under the Income Tax Act. Under Section 234F, a company may face a penalty of ₹5,000 if the return is filed after the due date but before December 31 of the assessment year, and ₹10,000 if filed later. Additionally, Section 234A imposes interest at 1% per month on the unpaid tax amount for delayed filing. Late filing also leads to the disallowance of certain deductions and delays in refund processing. For companies subject to audits, failure to submit reports on time can further invite scrutiny and financial penalties.

Q12. How does TaxBuddy assist companies with ITR-6 and tax audits? TaxBuddy simplifies ITR-6 filing and tax audit compliance through its AI-based platform that combines automation with expert assistance. The platform automatically fetches data from audited financials, reconciles TDS information with Form 26AS, and ensures accurate computation of MAT and carry-forward credits. It also tracks due dates and alerts users about upcoming compliance deadlines. Companies opting for expert-assisted plans get end-to-end support—from document collection and audit report upload to final submission and verification. This reduces the chances of human error, saves time, and ensures seamless compliance with the Income Tax Department’s latest requirements.