ITR-6 Filing: Income Tax Return for Companies
What is ITR-6?
ITR-6 is the Income Tax Return form that must be filed by companies, except for those that claim exemption under Section 11 of the Income Tax Act, 1961 (for charitable or religious purposes). This form captures the income, expenses, and tax payable for companies in India and is a mandatory annual filing.
Who is Eligible to File ITR-6?
ITR-6 is applicable to companies registered in India, including:
- Private Limited Companies: All private limited companies must file ITR-6 for reporting their income and tax liabilities.
- Public Limited Companies: Public companies not claiming exemption under Section 11 must also file ITR-6.
- Limited Liability Companies (LLCs): Companies operating as LLCs in India.
Who is Not Eligible to File ITR-6?
ITR-6 cannot be used by the following entities:
- Companies claiming exemption under Section 11: These companies, such as those operating for charitable or religious purposes, should file ITR-7.
- Partnership Firms, LLPs, and Individuals: These entities are required to file their respective forms (e.g., ITR-3, ITR-5).
Documents Required for ITR-6 Filing
To file ITR-6, the following documents are typically needed:
- Financial Statements: Profit and Loss statement, balance sheet, and any audit report (if applicable).
- Tax Payment Receipts: Proof of advance tax payments, self-assessment tax, and TDS certificates.
- Form 26AS: Consolidated tax statement showing TDS, advance tax, and other tax credits.
- Details of Investments: Investment proofs for claiming deductions under various sections like 80G, etc.
- Audit Report: If the company’s accounts are audited, the audit report should be provided.
Benefits of Filing ITR-6
Filing ITR-6 offers numerous benefits, including:
- Tax Compliance: Filing ITR-6 ensures that companies are compliant with the Income Tax Act, avoiding penalties and legal issues.
- Carry Forward of Losses: Business losses can be carried forward to future years to set off against future profits.
- Claim Refunds: Filing ITR allows companies to claim any excess taxes paid or claim Tax Deducted at Source (TDS) credits.
- Accurate Financial Records: Helps maintain proper financial records, which is important for audits and business evaluations.
- Enhanced Credibility: Proper tax filing enhances the credibility of the company when applying for loans or dealing with government bodies.
ITR-6 Filing Procedure
The ITR-6 filing process involves the following steps:
- Prepare financial statements: Ensure that your company’s financial records such as the Profit and Loss statement and balance sheet are ready.
- Calculate tax liability: Calculate the total tax liability based on the company’s income, deductions, and exemptions.
- File the return online: ITR-6 can only be filed electronically through the Income Tax Department’s portal.
- Upload audit report: If the company’s accounts are audited, upload the audit report along with the return.
- Verification: After filing, verify your return using an electronic verification code (EVC) or by sending a signed copy of ITR-V to the CPC, Bengaluru.
Penalties for Late Filing of ITR-6
Not filing ITR-6 by the due date can result in the following penalties:
- Late Filing Fee: A penalty of ₹5,000 if the return is filed after the due date but before December 31st. If total income does not exceed ₹5 lakh, the penalty is reduced to ₹1,000.
- Interest under Section 234A: Interest is levied at 1% per month on the unpaid tax if the return is filed after the due date.
- Loss of Carry Forward Benefits: Losses cannot be carried forward if the return is not filed on time.
How WeIncept Helps with ITR-6 Filing
WeIncept offers end-to-end support for filing ITR-6, ensuring that your company meets all compliance requirements. Our services include:
- Tax Calculation: We compute the tax liability of your company, ensuring all deductions and credits are applied accurately.
- Filing Assistance: We handle the entire filing process, from preparing financial statements to submitting the return online.
- Audit Guidance: If your company requires an audit, we guide you through the process and ensure compliance with statutory requirements.
- Compliance Check: Our experts ensure your ITR-6 filing complies with all legal and regulatory requirements, minimizing the risk of penalties.
Why Choose WeIncept for ITR-6 Filing?
WeIncept makes ITR-6 filing easy and hassle-free for companies. Here’s why you should choose us:
- Experienced Professionals: Our team of tax professionals ensures accurate and timely filing of your ITR-6.
- End-to-End Service: From tax calculation to filing and audit assistance, we provide complete support for ITR-6 filing.
- Cost-Effective Solutions: Our services are designed to be affordable and efficient, providing the best value for your business.
- Timely Filing: We ensure that your ITR-6 is filed on time to avoid penalties and ensure compliance.
File Your ITR-6 with WeIncept Today
Let WeIncept handle your company’s ITR-6 filing, ensuring full compliance with tax regulations. Contact us today for seamless, reliable, and cost-effective tax filing services for your company.