Income Tax

ITR-7 Return Filling

Income Tax Return - Filing Form ITR-6

Every Indian Resident with any source of income is required to pay tax to the government in the form of Income Tax. The government imposes tax on every entity such as individuals, HUFs, Companies, LLPs, Association of Person, Body of Individuals, and any artificial judicial person. Income Tax Return is the form filed to furnish the information to the government about Income incurred along with tax liability. The form filed would vary depending upon the type of entity filing the return.

Applicability to file ITR-6

Every Company irrespective of its structure registered under the Companies Act 2013 or earlier under the Companies Act, 1956, shall file Income Tax Return through form ITR-6. However, those companies whose income is from the charitable or religious organization are not required to file Form ITR-6 (exempt under Section 11).

The taxpayer liable to file Form ITR-6 must obtain an audit report under Section 44-AB. As per section 44-AB, an entity whose sales, turnover, or gross receipt exceed INR 1 Crore in the preceding financial year must compulsorily get its accounts audited from a Chartered Accountant.

Procedure to fill out ITR-6

The following is a convenient sequence for filing Form ITR-6:

  • Part A (and its sub-sections) – All the Schedules
  • Part B (its sub-section) – Verification

This income tax return is a complete online form and has to be furnished electronically by affixing the DSC of the assessee. While filling ITR-6, no document is required to be attached with return. It is advisable for the taxpayers to tally the data with their Tax Credit Statement Form 26 AS about tax deducted, collected, and paid by them.

Who all cannot file Form ITR-6?

This form is not filed by the following taxpayers:

  • Firms
  • Individual
  • HUFS
  • Association of Person
  • Body of Individual
  • Local authority
  • Companies that claim exemption u/s 11

Those companies who have any component of income from the religious or charitable organization can seek exemption under section-11. Thus, in simpler words, an entity not seeking exemption under section-11 shall file ITR-6.