ITR 6 (Private / Public Company)

Description

 ITR 6 for Private and Public Companies

Introduction:

ITR 6 is an Income Tax Return form specifically designed for companies other than those claiming exemption under Section 11 (i.e., charitable or religious trusts).

It is applicable to both private and public companies, including those registered under the Companies Act, 2013. This detailed guide aims to provide comprehensive insights into ITR 6 for private and public companies, covering its applicability, features, filing procedure, and implications.

Applicability of ITR 6:

1. Private Companies:

Private limited companies, regardless of their size or turnover, are required to file their income tax return using ITR 6. This includes closely-held companies with a limited number of shareholders.

2. Public Companies:

Public limited companies, listed or unlisted, are also required to file their income tax return using ITR 6. Public companies typically have a larger shareholder base and are subject to more stringent regulatory requirements.

Features of ITR 6:

1.Detailed Information:

ITR 6 requires detailed information about the company, including its name, address, Permanent Account Number (PAN), and financial particulars such as turnover, profit, and tax liabilities.

2. Financial Statements:

Companies need to provide their financial statements, including the balance sheet, profit and loss account, and other relevant financial documents, along with the ITR 6 form.

3.Tax Computation:

Companies must compute their taxable income, taking into account various income heads, deductions, exemptions, and tax credits as per the provisions of the Income Tax Act.

4. Audit Requirements:

Companies meeting certain turnover thresholds are required to get their accounts audited by a qualified Chartered Accountant (CA) and provide an audit report along with ITR 6.

Filing Procedure for ITR 6:

1. Preparation of Financial Statements:

Companies need to prepare their financial statements, including the balance sheet, profit and loss account, and other relevant documents, in accordance with the applicable accounting standards.

2. Tax Computation:

Companies must compute their taxable income, taking into account income from all sources, deductions, exemptions, and tax credits as per the provisions of the Income Tax Act.

3. Filling out the Form:

Companies need to carefully fill out all sections of ITR 6, providing accurate and complete information as per the requirements of the form.

4. Audit Report:

If applicable, companies must attach an audit report prepared by a qualified Chartered Accountant, certifying the accuracy and completeness of the financial statements and tax computation.

Implications of Filing ITR 6:

1. Compliance:

Filing ITR 6 ensures compliance with the provisions of the Income Tax Act, 1961, and fulfills the company’s obligation to furnish its income tax return.

2. Avoidance of Penalties:

Timely and accurate filing of ITR 6 helps companies avoid penalties and legal repercussions for non-compliance with income tax laws.

3. Assessment and Scrutiny:

The information provided in ITR 6 may be subject to assessment or scrutiny by the Income Tax Department, and companies may be required to provide additional documentation or explanations if necessary.

Conclusion:

ITR 6 is an important income tax return form for both private and public companies, ensuring compliance with income tax laws and regulations. By understanding its applicability, features, filing procedure, and implications, companies can fulfill their tax obligations effectively and avoid potential penalties or legal consequences. It is advisable for companies to seek professional assistance from qualified Chartered Accountants or tax advisors to ensure accurate and timely filing of ITR 6.

10 FAQs: ITR 6 for Private and Public Companies

1. Who needs to file ITR 6?

– ITR 6 is required to be filed by companies other than those claiming exemption under Section 11 of the Income Tax Act, 1961. This includes both private and public companies registered under the Companies Act, 2013.

2. What information is required to file ITR 6?

– Companies need to provide detailed information about their financials, including turnover, profit, loss, tax liabilities, balance sheet, and profit and loss account. Additionally, they may need to attach an audit report if applicable.

3.Is ITR 6 applicable to all types of companies?

– Yes, ITR 6 is applicable to both private limited companies and public limited companies, regardless of their size, turnover, or whether they are listed or unlisted.

4.What is the deadline for filing ITR 6?

– The deadline for filing ITR 6 is typically September 30th of the assessment year. However, the due date may vary depending on specific circumstances or extensions granted by the Income Tax Department.

5.Can companies file ITR 6 electronically?

– Yes, companies can file ITR 6 electronically through the Income Tax Department’s e-filing portal. They need to register on the portal, fill out the form online, and submit it electronically.

6. What are the consequences of not filing ITR 6?

– Failure to file ITR 6 within the prescribed deadline may result in penalties, fines, and legal consequences imposed by the Income Tax Department. It may also lead to difficulties in availing tax benefits and claiming refunds.

7. Do companies need to attach any documents while filing ITR 6?

– Companies may need to attach supporting documents such as financial statements, audit reports, and TDS certificates as specified in the instructions provided with ITR 6.

8.Can companies revise their ITR 6 after filing?

– Yes, companies can revise their ITR 6 within the prescribed time limit if they discover any errors or omissions in the original filing. However, revisions can only be made for certain types of errors and within the specified timeframe.

9.Is it necessary to keep a copy of the filed ITR 6?

– Yes, it is advisable for companies to keep a copy of the filed ITR 6, along with all supporting documents and receipts, for future reference. This helps in case of any inquiries or audits by the Income Tax Department.

10. Where can companies seek help if they have questions or need assistance with filing ITR 6?

– Companies can seek assistance from qualified Chartered Accountants, tax advisors, or the customer support services provided by the Income Tax Department for any queries or assistance related to filing ITR 6.

Sources : https://cleartax.in/s/itr6

For More Information : https://taxgyany.com/product/itr-6-private-public-company/