ITR-6: Applicability for Companies Filing Income Tax
- Asharam Swain
- 9 hours ago
- 10 min read
ITR-6 is the prescribed income tax return form for all companies in India, except those claiming exemption under Section 11. Applicable for Assessment Year 2025-26, this form must be filed electronically, typically using a digital signature, to ensure statutory compliance. Companies, whether Indian or foreign, must disclose income, deductions, and other mandatory details accurately to avoid penalties. Proper adherence to ITR-6 requirements helps businesses maintain transparency, manage audits efficiently, and claim applicable deductions or exemptions without errors. TaxBuddy offers a seamless platform to assist companies in filing ITR-6 with minimal hassle.
Table of Contents
What is ITR-6 and Who Must File It?
ITR-6 is applicable to all companies, including domestic and foreign companies, that do not claim exemption under Section 11. Companies engaged in regular business operations, manufacturing, services, or trading must file ITR-6. Non-filing or incorrect filing can attract penalties and affect compliance records with the Income Tax Department.
Companies Exempt from ITR-6 Filing
Companies claiming exemption under Section 11, such as charitable or religious trusts, are not required to file ITR-6. Instead, these entities must file ITR-7. Other exempt entities include political parties and specified institutions outlined under the Income Tax Act.
Mandatory E-filing and Digital Signature Requirements
All companies are required to e-file ITR-6, and those with a turnover exceeding ₹5 crore in the relevant financial year must submit the return using a digital signature certificate (DSC). Smaller companies may use electronic verification methods, but DSC ensures authentication and compliance with government regulations.
Key Updates in ITR-6 for AY 2025-26
For Assessment Year 2025-26, the Income Tax Department has introduced several important updates in ITR-6 to improve accuracy, transparency, and compliance for companies and businesses required to file this form.
One significant update is the enhanced reporting of Tax Deducted at Source (TDS) and advance tax details. Taxpayers are now required to provide a more comprehensive breakdown of TDS deducted on various payments, as well as advance tax paid during the financial year. This ensures that all tax credits are accurately reflected and reduces discrepancies between the taxpayer’s records and
Form 26AS.
Additionally, several schedules for tax payments, deductions, and exemptions have been revised. These revisions aim to simplify reporting by clearly distinguishing between eligible deductions and taxable amounts. Companies must carefully review these schedules to ensure proper classification of expenses, eligible deductions, and exemptions claimed under different sections of the Income Tax Act.
Another key change is the integration with the updated Form 26AS. This allows the Income Tax Department to verify TDS credits, advance tax payments, and other reported amounts more efficiently. It helps prevent mismatches and errors that could delay processing or trigger notices.
ITR-6 also introduces new sections for reporting changes in shareholding patterns, which are particularly relevant for companies with significant transfers or issuance of shares during the year. Additionally, the form now requires disclosure of Corporate Social Responsibility (CSR) expenditures to ensure compliance with Section 135 of the Companies Act. This provides a transparent record of CSR contributions and enhances corporate accountability.
These updates in ITR-6 emphasize the importance of accurate reporting, timely filing, and careful verification of tax-related data, helping companies maintain compliance while minimizing potential errors or mismatches with the Income Tax Department.
Important Disclosures and Schedules in ITR-6
ITR-6 requires companies to fill multiple schedules:
Schedule BP: Business and profession income.
Schedule TDS: Tax deducted at source details.
Schedule IT: Computation of tax liability.
Schedule 8A/8B: Dividend distribution and capital gains disclosures.
CSR contributions and other statutory disclosures must also be accurately reported.
Bank Account Details Required in ITR-6
Companies must provide complete bank account details, including account numbers, IFSC codes, and branch details, for refund processing. Accurate bank details are crucial to prevent delays in refund credit and ensure compliance with Income Tax regulations.
Stepwise Filing Process for Companies
Download ITR-6 Utility:
The first step for companies filing their Income Tax Return is to download the ITR-6 utility from the official Income Tax Department portal. This utility is available in both Excel and Java versions and is designed specifically for companies that are not claiming exemption under Section 11. Choosing the correct utility version is important, as it ensures compatibility with the current Assessment Year requirements and the updated ITR form structure for FY 2024–25.
Fill Company Details:
After downloading the utility, the company needs to enter its basic details, including PAN, TAN, CIN, and registered office address. Accurate entry of these details is critical, as mismatches can lead to processing delays or errors in validation. Companies should also verify their incorporation details and ensure that all information matches the records maintained with the Ministry of Corporate Affairs and the Income Tax Department.
Complete Schedules:
The next step is to fill in all applicable schedules in the ITR-6 utility. This includes reporting business income, capital gains, deductions under various sections, taxes already paid (TDS, advance tax, self-assessment tax), and other statutory disclosures. Each schedule has specific instructions, and it is important to provide accurate and complete information to prevent processing errors or scrutiny notices.
Verify Bank Details:
Companies must ensure that all bank account details are correctly listed in the utility. This is essential for refund processing, if applicable. Multiple bank accounts can be added, but care should be taken to verify account numbers, IFSC codes, and account types. Any discrepancies can delay refunds or cause failed transactions.
Generate XML/JSON File: Once all details are entered and verified, the utility allows the company to generate an XML or JSON file for online submission. This file contains all the financial and corporate information in a structured format recognized by the Income Tax Department. Generating this file correctly is essential, as it forms the official return that will be submitted and validated.
Upload and E-Verify: The final step is to upload the generated XML or JSON file to the Income Tax e-filing portal. After uploading, the company must authenticate the return using a Digital Signature Certificate (DSC) or any available e-verification method, such as Aadhaar OTP, net banking, or EVC. Successful e-verification ensures that the return is legally accepted, and the filing process is complete.
Common Mistakes to Avoid While Filing ITR-6
Entering incorrect PAN or TAN details
One of the most common errors while filing ITR-6 is entering incorrect PAN (Permanent Account Number) for the taxpayer or TAN (Tax Deduction Account Number) for the deductors. Even a minor typo can lead to a mismatch in the Income Tax Department’s database, causing your return to be rejected or flagged for correction. It is essential to cross-check the PAN of all parties involved, including directors and deductors, before submitting the return. Ensuring accuracy at this stage
prevents unnecessary notices or delays in processing your return and refunds.
Mismatching TDS or advance tax figures with Form 26AS
Another frequent mistake is reporting TDS (Tax Deducted at Source) or advance tax incorrectly in the return, especially when it does not match the entries in Form 26AS. Discrepancies between your declared TDS or advance tax and the official records can result in notices, delays in refund processing, or even interest and penalty charges. Always reconcile your TDS and advance tax amounts with Form 26AS before filing the ITR-6 to ensure accuracy.
Omitting mandatory schedules like CSR or dividend disclosures
ITR-6 requires certain schedules to be filled mandatorily, including corporate social responsibility (CSR) contributions and dividend income disclosures. Failing to include these schedules can lead to an incomplete return, triggering notices or additional scrutiny from the tax authorities. Even if the amount is zero, declaring it in the relevant schedule ensures compliance and prevents avoidable errors.
Providing inaccurate bank account details
Bank account details are crucial for receiving tax refunds. Entering incorrect account numbers, IFSC codes, or mismatched names can result in failed refund transfers or delays. It is important to verify that the account details provided in the ITR match exactly with your bank records. Correct information ensures timely credit of refunds without repeated follow-ups or corrections.
Late submission or failure to e-verify the return
Submitting the ITR-6 after the due date can lead to penalties under the Income Tax Act, and late filing may also delay refund processing. Additionally, failing to e-verify the return within the stipulated 120 days renders the ITR invalid, as unverified returns are considered incomplete. E-verification can be completed instantly using methods like Aadhaar OTP, net banking, or electronic verification codes provided by authorized banks, ensuring that your return is successfully filed and processed without any complications.
Role of TaxBuddy in Simplifying ITR-6 Filing
TaxBuddy provides a guided platform for filing ITR-6, reducing manual errors and ensuring compliance. Features include automated calculation of taxes, pre-filled schedules, TDS verification, and step-by-step filing instructions. Companies can also track the status of their filings and get expert assistance whenever needed.
Deadlines and Penalties for Late Filing
For businesses and individuals, adhering to the ITR filing deadlines is crucial to ensure compliance and avoid unnecessary financial liabilities. For companies that require an audit, the normal filing deadline for submitting Income Tax Returns for the Financial Year 2024-25 is October 31, 2025. This allows audited companies sufficient time to complete their financial statements, have them verified by a chartered accountant, and accurately report all income and deductions. Filing within this timeline ensures smooth processing of returns and reduces the risk of scrutiny or penalties.
In cases where taxpayers miss the normal deadline, there is still an opportunity to file a belated return. The belated filing deadline is set at December 31, 2025. However, it is important to note that filing after the prescribed due date comes with financial consequences. Late filing attracts a penalty of up to ₹5,000 under Section 234F of the Income Tax Act. In addition, interest is levied on any unpaid taxes, calculated from the original due date until the actual payment date.
Timely e-filing using the updated ITR utilities, along with accurate reporting of income, deductions, and TDS credits, can help taxpayers avoid these penalties. Proper planning and adherence to deadlines ensure that returns are processed efficiently, and refunds, if applicable, are issued without unnecessary delays.
Conclusion
Filing ITR-6 is critical for companies to maintain compliance and avoid penalties. By understanding the latest updates, required schedules, and mandatory disclosures, companies can file accurately and efficiently. Platforms like TaxBuddy simplify the process, guiding companies through the stepwise filing and e-verification, ensuring error-free submissions. For companies seeking a hassle-free solution, using the TaxBuddy app platform streamlines the filing process while maintaining compliance with the Income Tax Department.
FAQs
Q1. Who is required to file ITR-6?
ITR-6 is mandatory for companies other than those claiming exemption under Section 11 (income from charitable or religious trusts). This form is specifically designed for companies that need to report their financial statements, profits, losses, and tax computations in a structured format. It is applicable to both private and public limited companies, including those with foreign investments, as long as they do not fall under the charitable exemption.
Q2. Are companies claiming exemption under Section 11 required to file ITR-6?
No. Companies claiming exemption under Section 11, which pertains to income from charitable or religious activities, must instead use ITR-7 for filing. Filing ITR-6 in such cases is not permitted, as it is designed for taxable companies, not exempt entities.
Q3. Is e-filing mandatory for all companies?
Yes. E-filing of ITR-6 is mandatory for all companies, regardless of turnover or type of business. Filing must be done online through the Income Tax Department’s portal using the ITR utility or JSON file upload. This ensures faster processing, secure submissions, and easier reconciliation of TDS and advance tax.
Q4. Do all companies need a Digital Signature Certificate (DSC) to file ITR-6?
Yes. A Digital Signature Certificate (DSC) is required for authenticating ITR-6. The DSC ensures the integrity and authenticity of the return submitted. Without a valid DSC, the return will be rejected by the system.
Q5. What are the key schedules in ITR-6?
ITR-6 includes several schedules to capture detailed information, such as:
Balance Sheet Schedule – Assets, liabilities, and capital structure
Profit & Loss Account Schedule – Revenue, expenses, and profits
Tax Computation Schedule – Taxable income, deductions, and advance tax
Other Information Schedule – Related-party transactions, CSR expenditure, and compliance with corporate regulations
These schedules ensure comprehensive reporting and compliance with the Companies Act and Income Tax Act.
Q6. What bank account details must be provided in ITR-6?
Companies must provide all operational bank account details, including:
Account number(s)
IFSC code(s)
Bank name and branch Providing accurate bank details is crucial for receiving refunds and ensuring proper tax credit adjustments.
Q7. Can TaxBuddy assist with ITR-6 filing?
Yes. TaxBuddy offers both self-filing and expert-assisted solutions for ITR-6. The platform helps companies prepare returns accurately, upload JSON files, validate schedules, and e-file using DSC. Expert-assisted plans ensure full compliance, even for complex corporate structures.
Q8. What are the deadlines for filing ITR-6 for FY 2024-25?
For FY 2024-25 (AY 2025-26), the deadlines are:
Regular filing (audit companies): October 31, 2025
Revised or belated returns: December 31, 2025 Filing after these dates will attract penalties and interest on tax dues.
Q9. What penalties apply for late filing?
Late filing of ITR-6 attracts a penalty under Section 234F:
Q10. How can errors in TDS and advance tax reporting be avoided?
Errors can be minimized by:
Reconciling Form 26AS with internal records
Double-checking TDS and advance tax payments
Using validated JSON files TaxBuddy provides automated checks and validation tools to ensure TDS and advance tax data match before submission, reducing the risk of mismatches and notices from the IT department.
Q11. Can ITR-6 be revised after filing?
Yes. Companies can file a revised ITR-6 under Section 139(5) to correct errors or omissions in the original return. Revised returns can be filed before the end of the relevant assessment year or the belated filing deadline, whichever is earlier, ensuring adjustments for mistakes or updated information.
Q12. How does TaxBuddy ensure accurate and compliant ITR-6 filing?
TaxBuddy ensures accuracy and compliance by:
Providing pre-filled JSON files from financial statements
Validating all schedules and fields against IT rules
Offering expert review to catch discrepancies
Guiding companies in DSC-based e-filing This approach ensures timely, error-free, and compliant ITR-6 submissions, reducing the risk of penalties and audit notices.
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