What are the eligibility criteria for availing the ITR 6 Form?

- All Indian companies, regardless of their structure, are required to submit the ITR 6 form. Companies that have generated income exclusively from property for religious or charitable purposes are exempted from filing the ITR 6 form.

- If a company's sales, turnover, or gross receipts exceed Rs.1 crore in the preceding financial year, its accounts must be audited by a certified Chartered Accountant.

It is crucial for Indian companies to follow these regulations to avoid penalties and ensure compliance with tax laws.

Who is ineligible to submit Form ITR 6?

If a company derives income from religious or charitable organizations, it may apply for exemption under Section 11. In other words, if a company is seeking exemption under Section 11, it is not required to file ITR 6 Form.

Structure of Form ITR 6

ITR 6 consists of two parts, namely Part A and Part B, featuring several schedules to provide comprehensive details on income and tax-related information that are applicable to the taxpayer.

- Part A of the document comprises of several subsections.

-  General Information includes critical details such as the entity's name, PAN number, address, CIN, and date of incorporation.

- Trading Account section, which requires details of the company's income and expenditure.

-  Manufacturing Account section, the inventory figures such as opening and closing stock and production costs are recorded.

- Profit and Loss Account section provides insights into the company's financial performance during the financial year.

-  Balance Sheet section includes critical figures such as liabilities, current liabilities, and share capital.

Part B and its subcategories

- Part B-TI involves computation of total income

- Part B-TTI involves computation of tax liability based on total income

The tax return process involves the use of various schedules to accurately compute incomes and deductions. These schedules include:

- Schedule-HP is for computing income from house property.

- Schedule-BP is for computing profits and gains from business and profession.

- Schedule-DPM is for calculating depreciation on plant and machinery.

- Schedule-DOA is for summarizing all depreciation on assets.

- Schedule-DCG is for calculating deemed capital gain on sale of depreciable assets.

- Schedule-ESR is for claiming deductions under section 35 for expenditure on scientific research.

- Schedule-CG is for calculating income under the head capital gains.

- Schedule -OS: for income from other sources

- Schedule -CYLA: for calculating income after setting off current year's loss

- Schedule -BFLA: for setting off unabsorbed loss from previous year

- Schedule -CFL: statement of loss for carrying forward to another year

- Schedule -UD: statements of unabsorbed depreciation and allowance

- Schedule -ICDS: income computation disclosure standards

- Schedule -10AA: deductions under section 10AA

- Schedule -80G: details of deduction under section 80G for donations

- Schedule -80GGA: statement of donations for scientific research and rural development

- Schedule VIA: a statement that details the deductions from your total income as per chapter VI-A

- Schedule SI: details of income that is chargeable at special tax rates

- Schedule PTI: particulars pertaining to passing through income from a business trust or investment fund

- Schedule EI: statement disclosing any exempted incomes you may have

- Schedule MAT: breakdown of the tax payable under section 115JB, which is Minimum Alternate Tax

- Schedule DDT: a report on tax paid in relation to dividend distribution tax

- Schedule BBS:  details related to the distribution of tax on income earned through the buyback of your shares

- Schedule ESI: statement regarding your foreign incomes and the tax relief available to you

- Schedule IT: detailed information on the advance tax paid and self-assessment tax

- Schedule TDS: complete summary of TDS on incomes other than salaries

- Schedule-TCS: This is where you'll report the tax collected at source.

- Schedule-FSI: Use this to disclose any income you earned outside of India.

- Schedule-TR: If you're claiming tax relief for foreign taxes paid, provide details in this schedule.

- Schedule-FA: Give a thorough rundown of your foreign assets and foreign income in this schedule.

- Schedule-SH1: If you have shareholding in an unlisted company, this is where you'll provide the details.

- Schedule-SH2: Use this schedule to report your shareholding in start-ups.

- Schedule-AL1: To provide information about your assets and liabilities at the end of the year, use this schedule.

- Schedule-GST: If you've reported any turnover for GST, enter it in this schedule.

- Schedule-FD: The details of payments or receipts made in foreign currency must be disclosed in this schedule.

DOWNLOADING ITR FORM 6: HOW TO DO IT?

The Income Tax Department's official website offers a free download of ITR 6. Currently, offline options for filing ITR 6 forms are not available.

To access the ITR 6 form, follow these steps:

Step 1: Access the official income tax website at https://www.incometaxindiaefiling.gov.in/home.

Step 2: Look for the "Download" box in the right sidebar.

Step 3: Select "ITR Notified Forms AY 2020-21" in the third step.

Step 4: To obtain the ITR 6 form, click on "ITR 6 Notified Form AY 2020-21." This is available for online download. Make sure to follow the instructions carefully.

SIGNIFICANT CHANGES IN ITR-6 FORM

 Notable revisions to the ITR-6 Form for AY 2020-21 as outlined below:

- In the case of selling equity shares or units of a business trust subject to STT, it is mandatory to use a separate schedule 112A for computing long-term capital gains.

- The details regarding section 92CE's imposition on secondary adjustments to transfer prices (2A) have been specified.

- Important information has been added concerning tax deduction requests for purchases, payments, or expenses made from April 1, 2020, to June 30, 2020.

What is the process for filing ITR 6 Form?

IMPORTANT TIPS FROM THE INCOME-TAX DEPARTMENT FOR FILING RETURNS:

- Fill the returns in a specific sequence as advised by the department

- Begin with Part A (and subsection) and make sure to fill in all schedules

- Move on to Part B (and subsection) and complete the verification process

- File your returns online, electronically, with the DSC of the assessee

- When submitting ITR-6, avoid attaching any documents, including the TDS certificate. Furthermore, the IRS strongly suggests that taxpayers ensure that their Tax Credit Statement Form 26AS is in sync with the taxes that have been deducted, collected, and paid on their account.

When filling out the verification paperwork:

- Provide only relevant information and remove any extraneous details

- Make sure that the verification form is signed by the concerned individual before submission

- Choose the proper role or designation for the signatory of the return

- Any misrepresentation or false statements can lead to prosecution under Section 277 of the Income-tax Act of 1961.

Efiling of audit reports:

When an assessee is subject to audit u/s 44AB and their accounts have been audited by an accountant, it is necessary to electronically transmit the audit report details, including the auditor's name and the date of submission, to the department.