Income Tax Returns for Companies
Filing an income tax return is an important process for the company through which it reports its income and tax paid thereon to the Income Tax department.
All companies registered in India, be it a private limited company, company, limited company, one person and section 8 company have to mandatorily file an income tax return and MCA annual return every year.
The income tax return must be filed by the companies regardless of profit or loss. So, even dormant companies, who have not executed any transaction, need to file an income tax return every year.
ITR for Companies
Income Tax Return has to be filed in Form ITR -6 by private limited companies, one-person companies and limited companies before the due date to file the ITR for a company i.e. on or before the 30th of September.
Companies other than companies who are eligible to claim exemption u/s 11 companies have to file their income tax return in ITR-6 Form. Companies who earn income from properties which are held by them for charitable or religious purposes are eligible to claim exemption u/s 11.
So, the companies which do not claim an exemption for income earned from property held by them for charitable and religious purposes, are eligible to file ITR 6.
Due Date to File ITR for Companies
30th of September is the due date to file an income tax return by the companies registered in India. Unlike MCA annual returns, even if companies are registered from January to March, they must file income tax returns on or before 30th September of the same calendar year.
Businesses which do not need to get their accounts audited have to file ITR on or before July 31.
ITR to Be Filed
|ITR-7||Section 8 company|
Companies registered in India and engaged in a business for profit must file Form ITR 6. Hence, limited companies, private limited companies and one person companies must file Form ITR6. ITR 7 must be filed by Section 8 Company i.e. Companies carrying operations for non-profit purposes.
Any annexures including the TDS certificate, bank statement, investment proof need not be submitted while filing ITR-6. However, assesses must cross-check the taxes deducted/paid/collected/paid by them (or on behalf of them) with the Tax Credit Statement Form 26AS.
ITR Form 6: Structure
There are two parts in ITR Form 6- Part A which has 8 sub-sections and Part B which has two sub-sections. Besides, there are a number of schedules in this form.
Part A: General Information: Enter personal details like Name, Address, Email address, Aadhaar number, PAN details.
ITR-6: Return Filing
Income Tax Return-6 must be e-filed or furnished in an electronic mode, alongside The verification with Class 2 Digital Signatures, to the Income Tax Department.
Offline filing of ITR Form 6 is not permissible by the Income Tax Department.
Preparatory Actions to File ITR- 6
Steps to File ITR-6
Form 6 is downloadable from the official e-filing portal of the Income Tax department. However, it is not necessary to download the form because the income tax mandates the complete e-filing of the form in real-time along with verification using the digital signature.
Steps to e-file the Form ITR-6
Points to ponder:
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Content: The CBIC Provisional credit (i.e.10%) reduced to 5% under Rule 36(4) w.e.f. 1 January 2021
Interest not payable if GST return filed belatedly but amount deposited in Cash Ledger within due