Legal Darbar provides ITR-6 Return filing, which is an Income Tax Return form used by firms registered under the Firms Act, with the possible exception of those claiming a break under Section 11 (charitable or religious reasons). It is relevant to both private and public limited businesses, as well as other corporate bodies. Companies must file ITR-6 online using a valid Digital Signature Certificate (DSC). The form covers information about company earnings, capital gains, payment of dividend tax, and worldwide transactions. Filing ITR-6 assures legal compliance, allows for loss carry-forward, facilitates deduction claims, and is critical for financial transparency. Late filing may result in penalties and interest under the Income Tax Act. legaldarbar.com
Legal Darbar will tell you who should file for ITR-6 return filing.
- Private Limited Companies
- Public Limited Companies
- One Person Companies (OPCs)
- Startups Registered as Companies
- Foreign Companies Operating in India
- Others Not Claiming Exemption Under Section 11.
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Legal Darbar will tell you about the importance of ITR-6 return filing:
1. Ensure Legal Compliance and Avoid Penalties: Filing ITR-6 guarantees that a corporation follows tax rules and avoids fines under Section 234F (late filing) and other sections of the Income Tax Act, 1961.
2. Mandatory for carrying forward business losses: If an organization experiences business losses, capital losses, or loss of value, timely filing of ITR-6 allows it to carry those losses forward to future years and credit them against future earnings.
3. Adjust TDS and claim refunds: Companies frequently have TDS deducted from payments received. Filing ITR-6 allows you to reconcile with Form 26AS and receive payments for excess tax paid.
4. Required for business loans, investments, and vendors: Banks, investors, and regulatory bodies require ITR-6 as proof of financial stability before presenting business loans or investment funding or government contracts.
5. Avoid Tax Inspection and Legal Issues: Regular ITR-6 filing lowers the danger of tax scrutiny, audits, and legal notices from the Income Tax Department.
6. GST Compliance and Financial Record Keeping: Proper ITR filing promotes easy comparison with GST returns and helps maintain transparent financial records.
7. Helps in claiming tax deductions: Companies can claim deductions under Sections 80C to 80U for business expenses, obsolescence (Section 32), and R&D expenses (Section 35), which reduce taxable income.
Legal darbar gives the best advantages for ITR-6 return filing:
1. Legal compliance and fines: Filing ITR-6 ensures complying with the Income Tax Act, 1961, and avoids fines for noncompliance.
Late filing might result in a penalty.
2. Claim deductions and tax benefits: Section 30-37 allows companies to claim deductions for business expenses, impairment, R&D, and gifts, which allows businesses to lower their taxable income correctly.
3. Carry forward taxes and business losses: Filing ITR-6 on time allows corporations to carry forward business losses, capital losses, and unrealized losses for up to 8 years, which can be adjusted for future earnings.
4. Proper ITR filing: Provides financial proof for banks and financial organizations, simplifying loan and credit approvals.
Required for business loans, overdrafts, investor finance, and credit approvals.
5. TDS Reconciliation and Tax Refunds: Companies can use form 26AS to verify TDS deduction and demand refunds if excessive tax is paid.
6. Requirement for business contractors: Many government tenders and business contracts require businesses to provide past years’ ITR-6 files as proof of financial soundness.
7. Avoid legal compliances and ensure transparency: Regularly completing ITR-6 decreases the risk of inspections and legal notices from the Income Tax Department, ensuring transparency.
8. Improves the company’s reputation: Among investors, partners, and regulatory authorities, using digital filing is mandatory to file ITR-6 electronically with a digital signature. This ensures security, which simplifies the entire process and minimizes human mistakes. legaldarbar.com
Documents Required for ITR-6 Return filing:
1. Personal Information:
- PAN Card Aadhaar Card of the person.
- Bank Account Details (Bank name, IFSC, Account number, etc.) of that particular person.
2. Income Documents:
- Salary/Pension Income
- Form 16 from your employer
- Salary slips
- House Property Income
- Rental agreement
- Home loan
- Interest certificate
- Municipal tax receipts
- Capital Gains Income
- Stock trading statement (for shares, mutual funds)
- Property sale contract
- Purchase contract of the sold property
- Interest documents from banks, post offices, etc.
- Dividend income statement
- PPF/NSC interest details
3. Investment and deductions documents:
- LIC/PPF/EPF receipts
- ELSS/Mutual Fund investment proofs
- Home loan interest & principal payment receipts
- Tuition fee receipts
- Medical insurance premium receipts
4. Foreign Income & Assets: Details of foreign bank accounts, properties, and income sources
5. Tax Payments: Form 27AS used for verifying TDS Details Advance tax/ self-evolution tax payment challans. legaldarbar.com
FAQs for ITR-6 Return filing?
The due date for reporting ITR-6 (for companies not claiming exception is October 31st of the evaluation year, subject to delay.
Late filing of ITR-6 results in penalties, interest on tax dues, loss of carry-forward losses, and possible criminal charges for large delays or avoidance of taxes.
Yes, an organization can carry forward losses by filing ITR-6 on or before the due date, of the Income Tax Act.
There is no government fee for submitting ITR-6, however professional fees will apply if done through a CA or tax advisor. E-filing with DSC must be done.
Yes, you may amend ITR-6 by filing a revised return under before the evaluation year ends or the evaluation is completed.
Maintaining accuracy of ITR-6 records by keeping correct books, balancing financials, checking expenses, using tax software, and consulting an accountant as necessary.
A Chartered Accountant investigates financial accounts, monitors compliance, confirms tax calculations, and files Form 3CA/3CB with 3CD for companies that file ITR-6 under the taxation laws.
Yes, companies filing ITR-6 can claim deductions.
Legal Darbar performs ITR-6 filing on behalf of organizations, ensuring compliance, correct financial reporting, deductions, e-filing, tax optimization, and timely submission.