Form 6 is to be filed by companies other than companies claiming exemption under section 11. These are companies that do not include those with income from property held for charitable or religious purposes.
The companies that claim exemption under section 11 of the Income Tax Act are the ones that earn income from properties that they hold for charitable or religious purposes.
Form 6 has to be filled and submitted electronically. Verification has to be done using digital signature only.
Who can file ITR Form 6 (Eligibility)
Any company, which does not claim exemption for income earned from property they hold for charitable and religious purposes, is eligible to file Form 6.
Under section 11 of the Income Tax Act, income earned from property held for charitable and religious purposes is exempt from taxation. The companies that do not make use of this section can file their return using Form 6.
How to download Form ITR-6
The Form 6 is available on the e-filing portal of the Income Tax department. The form can be filled digitally. Downloading the form is not necessary as the department mandates that this form be completed electronically and verified with digital signature.
Dates For filing ITR Form 6
Businesses that have to get their accounts audited can submit the form by September 30. For the rest, the last date for filing ITR is July 31.
Structure of ITR Form 6
The ITR Form 6 has two parts. Part A has eight sub-sections and Part B has two. Additionally there are a host of schedules much like Form 5.
General Information: This is where you fill out your personal details such as name, address, PAN details, Aadhaar number and Email address.
BS: This section requires you to enter details of the balance sheet of your firm or LLP.
P&L: Enter the company’s profit and loss details.
Manufacturing Account: Here you enter details of your manufacturing account or open inventory for the year.
Trading Account: Enter your revenue from operations.
OI: Fill out other relevant information asked in this section.
QD: Here fill up the quantitative details of trading and manufacturing accounts.
OL: Here you have to enter details of receipt or payment of company under liquidation.
TI: This is where your total income is calculated. Your income is the sum of income from house property, profits from business, capital gains, any other income. All deductions have to be deducted from this income to find out the taxable income.
TTI: Here your tax liability is calculated based on your come and the applicable rate.
There are a host of schedules that come with this form. Some of the important ones have been discussed in the following:
Schedule HP: This is a detail of your income from house property.
Schedule BP: Fill the details of income from business.
Schedule DPM: Enter the depreciation for any plant and/ or machinery owned.
Schedule DOA: Enter the depreciation for any other assets.
Schedule DCG: If you have sold any depreciable asset any time during the year, this is where you enter your capital gains from the sale.
Schedule CG: Put in details of any capital gains.
How to fill ITR- 6
To fill the Form 6 properly, keep your balance sheets, book of accounts and profit and loss statement handy. The IT department provides detailed instructions on filling up Form 6 on its website.
The instructions available on the website are free to download and guide you through each point that needs to be filled out for the form. You have to fill out both Part and B as well as the schedules. There is no need to attach any documents with Form 6 as it is an annexure-less form.
Once you fill out the Form with your details, your tax is calculated. The Form takes into account all taxes paid in advance. At the end of the return filing process, your tax is settled. If you have paid more than what you are eligible to pay, the Income Tax department will initiate a refund.
Once you have successfully filed your return, you need to verify it. In case of Form 6, only online verification is allowed. So, you have to electronically fill the form and verify using a digital signature.
How to file ITR-6 Offline
The Income Tax department doesn’t allow offline filings for ITR Form 6.
How to file ITR-6 Online
The first step for filing ITR 6 online is to go to the e-filing portal of the Income Tax department. Select Form 6 if you are eligible for filing your return using this form.
You can fill in the details on the form as mentioned above. Once you have filled the form, you can digitally sign the verification form. The Income Tax department does not allow any other kind of verification for Form 6.
I own a company. Does that mean I have to file ITR Form 6?
You need to understand that Form 6 is meant for a specific group of companies. The form is meant for any company that does not claim exemption under section 11. The exemption sought under section 11 is for income from property that is owned for charitable or religious purpose.
So if you do not want to claim such an exemption, your company can file for IT return through Form 6.
How is ITR Form 6 different from Form 7?
Form 6 is for those companies filing returns that are not claiming exemptions under Section 11 of the Income Tax Act. These are companies that do not seek exemption on income from property owned for charitable or religious purposes.
Form 7, on the other hand, is for persons or companies that are required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F). Only online filing allowed.
What does Section 11 of IT Act say?
The Section 11 of the Income Tax Act is for income from property held for charitable or religious purposes. It says that any income derived from the property held under trust for charitable or religious purposes shall not form part of the total income subject to the provisions contained in section 60 to 63 for clubbing of income.
For example: any income derived from the property held under trust for charitable or religious purposes provided such income is utilised for charitable or religious purposes in India is exempt from tax. Any income derived from property held partially under trust if the income is utilised for charitable or religious purposes, is also exempt from tax.