Income Tax Return filing is an important compliance requirement for companies that are required to report their income under the Income Tax Act. The Income Tax Department provides different return forms depending on the taxpayer’s legal status and the nature of income.
ITR-6 is the income tax return form generally applicable to companies that are not claiming exemption under Section 11 of the Income Tax Act, 1961. It is designed specifically for companies and contains detailed schedules for reporting income, deductions, tax liability, financial information, and other applicable details.
For Assessment Year (AY) 2026-27, the Income Tax Department has notified the ITR-6 form for companies other than companies claiming exemption under Section 11.
Because company tax returns can involve detailed financial and tax information, understanding the applicability and filing requirements of ITR-6 is important for maintaining proper compliance.
What Is ITR-6?
ITR-6 is an Income Tax Return form specifically designed for companies that are required to file their return of income and are not claiming exemption under Section 11.
The form can apply to different types of companies, including:
- Domestic companies
- Foreign companies
- Other entities treated as companies under the Income Tax Act
The Income Tax Department’s AY 2026-27 guidance states that ITR-6 applies to companies other than those claiming exemption under Section 11.
Who Can File ITR-6?
ITR-6 is generally applicable to companies that meet the prescribed conditions.
1. Domestic Companies
A company incorporated in India may generally need to file ITR-6 when it does not fall under the Section 11 exemption category.
Domestic companies can have different tax treatments depending on factors such as their turnover, applicable tax provisions, and whether they have opted for certain concessional tax regimes.
2. Foreign Companies
A foreign company that is required to file an income tax return in India may also use ITR-6 when the applicable conditions are satisfied.
The Income Tax Department specifically states that ITR-6 can apply to companies incorporated under the laws of a country outside India, subject to the applicable provisions.
3. Other Entities Treated as Companies
The definition of “company” under the Income Tax Act can cover certain other bodies or institutions that are declared to be companies under the applicable provisions.
Therefore, the legal status of the entity should be checked before selecting the return form.
Who Cannot File ITR-6?
ITR-6 does not apply to every company or taxpayer.
A company that is required to file its return under the provisions applicable to Section 11 exemption claims generally needs to consider ITR-7 instead of ITR-6. The Income Tax Department distinguishes ITR-6 from ITR-7 based on the relevant return-filing provisions.
ITR-6 is also not the appropriate form for:
- Individuals
- Hindu Undivided Families (HUFs)
- Partnership firms
- LLPs
- Other entities required to use different ITR forms
Selecting the correct form should always be based on the company’s legal status and applicable income tax provisions.
What Information Is Reported in ITR-6?
ITR-6 contains several sections and schedules because companies can have complex financial structures.
Depending on the company’s activities, information may include:
1. Company Information
The return includes general information such as:
- Company name
- PAN
- Corporate Identity Number (CIN)
- Date of incorporation
- Date of commencement of business
- Type of company
- Registered or communication address
The notified AY 2026-27 ITR-6 specifically includes fields for company name, PAN, CIN, incorporation date, commencement of business, and company type.
2. Business or Professional Income
Companies generally report income from their business activities.
This may involve information relating to:
- Revenue
- Business expenses
- Profit or loss
- Depreciation
- Other business-related adjustments
The financial information should be consistent with the company’s books and financial statements.
3. Income From House Property
Where applicable, income from house property may also need to be reported.
4. Capital Gains
If a company transfers capital assets, applicable capital gains may need to be reported in the relevant schedules.
This can include transactions involving investments, securities, land, buildings, or other capital assets.
5. Income From Other Sources
Companies may also have income such as:
- Interest
- Dividends
- Other investment income
- Other taxable receipts
Such income should be reported under the appropriate provisions.
Tax Rates for Companies
The applicable tax rate for a company depends on factors such as its status and the tax provisions or options applicable to it.
For AY 2026-27, the Income Tax Department lists different rates for domestic companies. For example, the standard rate can be 25% or 30% depending on the applicable conditions, while certain concessional regimes have specified rates such as 22% under Section 115BAA and 15% for eligible business income under Section 115BAB. These rates are before applicable surcharge and cess.
Therefore, companies should not assume that one tax rate applies to every company.
The applicable tax treatment should be determined based on the company’s circumstances and the provisions under which it is taxed.
Documents and Information Required for ITR-6
Companies should maintain detailed financial and tax records before preparing ITR-6.
Important information can include:
Company Information
- PAN
- CIN
- Incorporation details
- Registered address
- Bank account details
- Company type
Financial Information
- Profit and loss statement
- Balance sheet
- Revenue details
- Expense records
- Asset information
- Liability information
- Depreciation details
- Investment details
Tax Information
- Form 26AS
- Annual Information Statement (AIS)
- Taxpayer Information Summary (TIS)
- TDS details
- TDS certificates
- Advance tax payments
- Self-assessment tax payments
- Tax audit information, where applicable
Companies should reconcile tax information before submitting the return.
ITR-6 and Tax Audit
Some companies may be subject to tax audit requirements depending on their business activities, turnover, and other applicable provisions.
Where a tax audit is applicable, the relevant audit information should be completed and considered while preparing the income tax return.
This makes proper accounting and financial record maintenance particularly important for companies.
How to File ITR-6?
ITR-6 is filed electronically through the Income Tax Department’s e-Filing system.
The general process includes:
Step 1: Prepare Financial Records
Complete the company’s books of accounts and financial statements.
Step 2: Review Tax Information
Check Form 26AS, AIS, TIS, TDS, advance tax, and other available tax information.
Step 3: Select ITR-6
Confirm that the company is required to file ITR-6 and does not fall under the applicable ITR-7 category.
Step 4: Enter Company Details
Provide or verify the company’s PAN, CIN, incorporation details, address, and other general information.
Step 5: Report Income and Deductions
Enter business income, capital gains, house-property income, other sources, deductions, and other applicable information.
Step 6: Complete Applicable Schedules
Complete the schedules relevant to the company’s financial and tax position.
Step 7: Review Tax Calculation
Check taxable income, tax liability, TDS, advance tax, applicable surcharge, cess, and other tax details.
Step 8: Submit and Verify
Submit the return electronically and complete the applicable verification process.
The Income Tax Department currently provides the ITR-6 utility and related filing resources for AY 2026-27.
Common Mistakes While Filing ITR-6
Companies should carefully review their return to avoid common errors such as:
- Selecting the wrong ITR form
- Incorrect company details
- Mismatch between books and tax return
- Incorrect revenue reporting
- Missing income from investments
- Incorrect depreciation
- Not reconciling TDS
- Incorrect tax-rate selection
- Missing applicable schedules
- Incorrect advance-tax information
- Failing to complete required verification
A proper review before submission can help identify discrepancies.
Why Accounting Matters for ITR-6
For companies, income tax filing is closely connected with accounting and financial reporting.
Accurate accounting records help companies:
- Track revenue and expenses
- Prepare financial statements
- Calculate taxable income
- Maintain asset and liability records
- Reconcile tax payments
- Prepare information required for tax filing
- Identify discrepancies before filing
Regular bookkeeping and accounting can therefore make the tax compliance process more organised.
How Seguro Advisors Can Help
Managing company accounts, tax records, payroll, and compliance requirements can require significant time and attention.
Seguro Advisors provides professional services including:
- Accounting services
- Bookkeeping services
- Tax services
- Payroll services
- Compliance services
Professional support can help companies organise their financial records, review tax information, prepare relevant financial data, and manage applicable compliance requirements.
The services required will depend on the company’s size, activities, structure, and financial circumstances.
ITR-6 vs ITR-7
One of the important distinctions for companies is between ITR-6 and ITR-7.
ITR-6 is generally applicable to companies other than companies claiming exemption under Section 11.
ITR-7 applies to persons, including companies, that are required to file returns under specified provisions such as Sections 139(4A), 139(4B), 139(4C), or 139(4D).
Therefore, a company should determine its applicable return based on its activities, exemption claims, and statutory requirements.
Conclusion
ITR-6 is the principal income tax return form for companies that are required to file an income tax return and are not claiming exemption under Section 11. It can apply to both domestic and foreign companies, subject to the applicable provisions.
Because ITR-6 contains detailed information about a company’s income, expenses, assets, liabilities, tax payments, and other financial matters, maintaining accurate accounting records is essential.
Companies should carefully verify their legal status, applicable tax provisions, financial statements, tax credits, and reporting requirements before submitting the return.
Seguro Advisors can support companies with accounting, bookkeeping, tax, payroll, and compliance-related requirements, helping them maintain organised financial records and manage their tax responsibilities.
Frequently Asked Questions
What is ITR-6?
ITR-6 is an Income Tax Return form generally used by companies other than companies claiming exemption under Section 11.
Who needs to file ITR-6?
Companies that are required to file an income tax return and do not fall under the applicable Section 11 exemption/ITR-7 category generally use ITR-6.
Can a foreign company file ITR-6?
Yes. A foreign company that is required to file an income tax return in India can generally use ITR-6 when the applicable conditions are satisfied.
Can an LLP file ITR-6?
No. LLPs generally use ITR-5, not ITR-6.
What is the difference between ITR-6 and ITR-7?
ITR-6 is generally for companies other than those claiming exemption under Section 11, while ITR-7 applies to specified persons and companies required to file under particular provisions of Section 139.
Is ITR-6 filed online?
Yes. The Income Tax Department provides electronic filing resources and utilities for ITR-6.
Can Seguro Advisors help companies with ITR-6 requirements?
Yes. Seguro Advisors provides accounting, bookkeeping, tax, payroll, and compliance-related services that can support companies with their financial and tax requirements.
