Easy Steps Of Filing ITR 6 Company Annual Filing | Ebizfiling from devesh gehani's blog

 Introduction 

If a company does not eligible for an exemption under Section 11 of the Income Tax Act of 1961, it must file an ITR 6 Form electronically to file its income tax returns. It is an annual compliance for a Private Limited Company. The companies that receive income from real estate held for charitable or religious purposes are eligible to seek an exemption under Section 11 ((Income from property held for charitable or religious purposes) of the Income-tax Rules. Therefore, companies that do not claim tax exemption under section 11 have to file an ITR 6.

 What is ITR 6 form? 

The ITR 6 form is an electric form filed by companies that do not claim an exemption under section 11 of the Income Tax Rules. It is a form that represents the company's income and expenses for the specific year. It is a mandatory compliance that a Private Limited Company has to file annually.

 Who is qualified for filing ITR 6 form? 

The following are eligible for filing ITR 6 form:

• Every company registered under the Companies Act, 2013, or the previous Companies Act, 1956 must file an ITR 6 Form. Filing ITR 6 is mandatory compliance for a Private Limited Company.

• The entity must have the accounts audited by a certified Chartered Accountant if the sales, turnover, or gross revenues in the previous financial year were greater than Rs.1 crore.

 Structure of ITR 6 form 

ITR 6 is subdivided into 2 parts: Part A and Part B (together with the sub-sections), and it has several schedules that contain data about the taxpayer's income and taxes. Let's explore it in more detail.

PART A

1. General information- It includes the details of the company such as name, PAN Card number address, CIN, date of incorporation, etc.

2. Trading account- It includes the details of the relevant expenditure and expenses of the company.

3. Balance sheet- It includes the details of the company such as liabilities, share capital, current liabilities, and more, etc.

4. Manufacturing account- It requires the figures of manufacturing the accounts regarding the inventory such as opening stock, closing stock, and cost of the goods which are produced.

5. Profit and loss- It includes the details of the company's profit or the loss that is suffered during the particular financial year.

PART B

• Part B-TI: Calculation of Total Income.

• Part B-TTI: Calculation of Tax liability of the Total Income.

 Benefits of filing the ITR 6 form 

There are several benefits of filing the ITR 6 form by the Private Limited Company. The benefits are as follows:

• Legal document: The ITR 6 form act as legal proof of your income proof because the form shows all expenses and income for the particular year.

• Avoid fines: The ITR 6 form should be filed on or before due dates to escape the penalties incurred when a company does not file the ITR 6 on time.

• Carry forward losses: Companies cannot carry forward the losses of the current year to the next year until an ITR 6 is completed. The income tax law states that if the ITR is not listed by the expected date, taxpayers are not permitted to carry forward losses and deduct them from earnings in the following year. Due to this, it is essential to submit your ITR 6 form on time in order to claim the losses in the following years.