Corporate Tax Return Filing (ITR-6)

What is Corporate Tax Return Filing (ITR-6)?

Every company incorporated under the Companies Act, 2013 or any earlier Companies Act is required to file its income tax return in Form ITR-6 on an annual basis under the Income Tax Act, 1961. Corporate tax filing integrates with the company's statutory audit, tax audit, and MCA annual filings, making it one of the most significant compliance obligations for any registered company in India. Accurate and timely filing protects the company from penalties and supports banking, fundraising, and regulatory credibility.

Corporate income tax compliance is among the most consequential obligations for any company registered in India. Every domestic company incorporated under the Companies Act, 2013 or the earlier Companies Act, 1956, as well as every foreign company that earns income from Indian sources, is required to file an income tax return in Form ITR-6 under the provisions of Section 139 of the Income Tax Act, 1961. The ITR-6 form is comprehensive and captures income from all heads, details of assets and liabilities, transactions with related parties, details of tax deducted at source, and disclosures required under various provisions of the Act. Domestic companies are taxed at different rates depending on their form and the regime they choose. A domestic company can opt for the new concessional tax regime under Section 115BAA, which provides a flat tax rate of 22 percent (effective rate of 25.17 percent including surcharge of 10 percent and cess of 4 percent) without any exemptions or incentives such as accelerated depreciation or investment-linked deductions. Alternatively, a company may choose the regular regime at 30 percent where it can avail of deductions under Chapter VI-A and other incentive provisions. New manufacturing companies incorporated after 1 October 2019 and commencing production before 31 March 2024 may opt for the even lower rate of 15 percent under Section 115BAB. Once a company opts for the concessional regime under 115BAA, it cannot revert to the regular regime. Under the regular regime, all domestic companies are also subject to Minimum Alternate Tax under Section 115JB. MAT applies at 15 percent of book profit where the normal tax computed on income is lower than MAT. Book profit is defined under the Companies Act and is essentially the net profit as per the profit and loss account, with specific additions and deductions prescribed in the Explanation to Section 115JB. The MAT credit so paid can be carried forward and set off against regular tax for up to fifteen years in subsequent assessment years. The due date for filing ITR-6 is 31 October of the assessment year for companies whose accounts are required to be audited. Since all companies registered under the Companies Act are required to have their accounts audited under Section 44AB of the Income Tax Act (turnover exceeding one crore rupees for business or fifty lakh rupees for profession) and under the Companies Act, 2013 (mandatory statutory audit for all companies), the 31 October due date effectively applies universally. Companies with international transactions requiring a transfer pricing accountant's report under Section 92E must file by 30 November. The Income Tax Act imposes several advance tax obligations on companies. A company must estimate its tax liability for the year and pay advance tax in four instalments — 15 percent by 15 June, 45 percent by 15 September, 75 percent by 15 December, and 100 percent by 15 March of the financial year. Failure to pay adequate advance tax results in interest under Sections 234B and 234C. Companies also have substantial TDS obligations — deducting tax at source on salaries, contractor payments, rent, professional fees, interest, and dividends, and remitting the same to the government within the prescribed due dates with quarterly TDS returns. Transfer pricing provisions under Sections 92 to 92F of the Income Tax Act apply to any company that has international transactions with associated enterprises. Such companies must maintain transfer pricing documentation under Rule 10D, obtain a transfer pricing accountant's report in Form 3CEB, and file it before the ITR-6. Domestic transfer pricing under Section 92BA applies to specified domestic transactions exceeding twenty crore rupees in aggregate. Common issues in corporate tax filing include incorrect computation of brought-forward loss set-off limits, errors in MAT computation, non-compliance with Section 43B cash payment provisions, incorrect treatment of capital vs revenue expenditure, and failure to disclose all related-party transactions in the schedule of transactions with persons specified under Section 40A(2)(b). The Income Tax Department's risk-based scrutiny increasingly focuses on companies with large cash transactions, significant royalty or management fee outflows, or turnover mismatches with GST data. Expert professional assistance from a qualified chartered accountant is not merely beneficial but is in many cases legally required. The statutory audit report under the Companies Act, the tax audit report under Section 44AB, and the ITR-6 itself must all be consistent. A professional ensures that all MAT computations, depreciation schedules, deferred tax workings, and TDS reconciliations are accurate, minimising the risk of costly assessments and penalties.

How It Works

1. 1

   Statutory Audit Completion

   Ensure the statutory audit under the Companies Act is complete and the auditor has issued the signed audit report. The tax audit report under Section 44AB must also be completed and uploaded by the auditor on the income tax portal before ITR-6 can be filed.

2. 2

   MAT and Advance Tax Computation

   Compute book profit under Section 115JB for MAT assessment. Verify advance tax paid in all four instalments. Compute interest payable under Sections 234B and 234C for any shortfall in advance tax payment.

3. 3

   Income Computation and Deduction Schedules

   Prepare income computation under all heads, apply admissible deductions under Chapter VI-A and business deductions, set off brought-forward losses as permitted under Section 72, and compute the final tax liability under regular regime and MAT, taking the higher of the two.

4. 4

   Transfer Pricing Compliance (if applicable)

   Where the company has international transactions, ensure Form 3CEB has been obtained from a chartered accountant and uploaded on the portal. Transfer pricing documentation under Rule 10D must be maintained and ready for submission if called for.

5. 5

   ITR-6 Preparation and Validation

   Prepare the ITR-6 return covering all mandatory schedules including Schedule BP, Schedule CG, Schedule HP, Schedule TDS, Schedule IT (advance tax), Schedule SH (shareholding), and Schedule AL. Cross-verify with AIS data and audited financials.

6. 6

   DSC-Based Filing and Acknowledgement

   File ITR-6 on incometax.gov.in using the DSC of a director who is also registered on the portal. Companies cannot e-verify via Aadhaar OTP. Download the ITR-V acknowledgement and maintain it with the audited accounts.

Government Fees

Professional Fees