ITR-6 Return Filing for Companies
Regime selection under Section 115BAA, MAT computation and credit tracking, tax audit coordination, and financial statement reconciliation for private, public, and one-person companies
What Is ITR-6?
For a company, the return is rarely the hard part. The hard part is the decision that precedes it — whether to opt into the concessional regime under Section 115BAA, because that election is irreversible, forfeits most deductions and incentives, and removes access to accumulated minimum alternate tax credit. Companies that opt in while sitting on unused MAT credit routinely discard something worth more than the rate saving.
N D Savla & Associates prepares ITR-6 returns for private limited, public limited and one person companies. The work runs across regime comparison, MAT computation under Section 115JB, disallowances, and reconciliation against the financial statements filed with the Registrar, which must agree with the return. Tax audit under Section 44AB is handled by the same team as the income tax audit.
Who Files ITR-6?
ITR-6 is filed by every company registered under the Companies Act — private limited, public limited, one person company and foreign companies with Indian income — other than a company claiming exemption under Section 11 as a charitable or religious institution, which files ITR-7.
Filing is compulsory regardless of income. A company with no operations, no revenue and no profit must still file a return each year, and a dormant company is no exception. The return must be filed electronically with a digital signature, accompanied by the tax audit report where Section 44AB applies, together with any transfer pricing report where international or specified domestic transactions have taken place.
Which Tax Regime Should Your Company Choose?
The choice determines both the rate and what the company can claim — and for two of the options it cannot be undone.
| Regime | What It Offers | What It Costs |
|---|---|---|
| Normal provisions | Full access to deductions, incentives and MAT credit carry-forward | Higher headline rate; MAT applies where regular tax is below book profit threshold |
| Section 115BAA | Lower flat rate (22%); MAT not applicable | Irreversible; most deductions and MAT credit forfeited permanently on election |
| Section 115BAB | Lowest rate (15%) for new manufacturing companies | Strict eligibility conditions; commencement deadline; irreversible |
| Small company benefit | Lower rate for companies within turnover threshold | Rate depends on prescribed turnover limit |
| MAT under 115JB | Credit usable in future years when regular tax exceeds MAT | Applies where normal tax is below the book profit threshold; generates credit limited to 15 years |
Which Companies File ITR-6?
Operating Private Limited Companies
Business income computed from audited accounts, adjusted for disallowances, with depreciation computed separately under Income Tax Act rates. The return must agree with financial statements filed with the Registrar. Most such companies are within tax audit.
Startups and Loss-Making Companies
A company with losses must still file, and filing by the due date is what preserves the ability to carry business losses forward. A late return forfeits that carry-forward for business loss — for a startup accumulating losses against future profitability, this is an expensive consequence of a missed date.
Dormant and Non-Operating Companies
Companies with no activity still file a nil return each year. Groups holding dormant entities for future use frequently allow this to lapse — reviving the company later requires clearing every intervening default. The cost of filing a nil return annually is trivial against the cost of regularising several years of non-filing.
Companies with International Transactions
A company transacting with associated enterprises abroad must maintain transfer pricing documentation and obtain a report in Form 3CEB, which extends the filing due date. Connects with our transfer pricing documentation work — the analysis needs to be in place well before the return.
How Our ITR-6 Filing Process Works
Finalisation of Audited Accounts
The statutory audit is completed and the financial statements finalised, since the return draws directly from them and must reconcile to what is filed with the Registrar. Discrepancies between the accounts and the return are a common audit trigger.
Tax Audit and Form 3CD Preparation
Where Section 44AB applies, the tax audit report is prepared with the Form 3CD annexure, which itself identifies most of the disallowances that will feed the computation. The tax audit report must be filed before or with the return.
Business Income Computation and Disallowances
Profit is adjusted for disallowances under Sections 40, 40A and 43B, expenditure on which TDS was not deducted or deposited, and expenditure of a personal or capital nature charged to revenue.
Depreciation and Allowance Computation
Depreciation is computed on the block of assets basis at Income Tax Act rates, which differ from the Companies Act rates used in the books, with additional depreciation where the asset qualifies.
Regime Comparison and Election
Liability is computed under the normal provisions and under Section 115BAA (and Section 115BAB where the company qualifies), taking into account deductions forfeited, MAT credit at stake and the irreversibility of the election. This analysis is presented before any option is exercised.
MAT Computation and Credit Tracking
Where the company remains under normal provisions, book profit under Section 115JB is computed with the prescribed adjustments, MAT compared against regular tax, and credit brought forward from earlier years set off within the permitted period.
Transfer Pricing Compliance
Where the company has international or specified domestic transactions, Form 3CEB is obtained from the transfer pricing accountant, the transactions documented, and the extended filing deadline managed.
Electronic Filing with Digital Signature
ITR-6 is filed electronically with a digital signature — no exceptions. Acknowledgement is retained and the return confirmed as processed on the portal.
Frequently Asked Questions About ITR-6 Return Filing
Who files ITR-6?
Every company registered under the Companies Act — private limited, public limited, one person company and foreign companies with Indian income — except companies claiming exemption under Section 11 as charitable or religious institutions, which file ITR-7. Filing is compulsory regardless of whether the company has income or operations.
Should my company opt for Section 115BAA?
The election is irreversible and forfeits accumulated MAT credit, most deductions, and incentives permanently. A company should model the tax liability under both regimes across several years — factoring in unused MAT credit, planned capital expenditure (additional depreciation), and any unexpired incentive periods — before opting in. We prepare this analysis before any election is made.
What is minimum alternate tax (MAT)?
MAT under Section 115JB applies where a company's regular income tax is below 15% of its book profit. In that situation, the company pays tax at 15% of book profit. The excess of MAT over regular tax becomes a credit usable in future years (within 15 years) when regular tax exceeds MAT. Companies opting for Section 115BAA are outside the MAT provisions entirely.
Can a dormant company skip filing ITR-6?
No — filing is compulsory for every company regardless of whether it has income, operations, or profit. A dormant company must file a nil return each year. Non-filing accumulates defaults that must be cleared before the company can be restored to active status or struck off under the simplified procedure.
What is the due date for ITR-6 filing?
31 October for all companies subject to tax audit (which is most operating companies). Where a transfer pricing report is required (Form 3CEB), the due date is typically 30 November. The return must be filed with a digital signature — physical filing is not available for companies.
ITR-6 Filing for Companies — Regime Analysis & Complete Compliance
Corporate return preparation including regime comparison, MAT computation, tax audit coordination, and financial statement reconciliation for private, public, and one-person companies across India.
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