Corporate Tax Return Filing (ITR-6)

Under the concessional regime of Section 115BAA, a domestic company pays tax at 22 percent plus a surcharge of 10 percent and health and education cess of 4 percent, resulting in an effective rate of 25.17 percent. Under the regular regime, the base rate is 30 percent for companies with turnover exceeding Rs 400 crore (surcharge 12 percent where income exceeds Rs 10 crore). New manufacturing companies under Section 115BAB pay at 15 percent. Section 8 companies and cooperative societies have separate rates.

Minimum Alternate Tax under Section 115JB applies to all domestic companies that do not opt for the concessional regime under Section 115BAA. It is levied at 15 percent of book profit as computed under Explanation 1 to Section 115JB. Where the regular tax computed on total income is less than the MAT liability, the company pays MAT. The excess MAT paid over regular tax is available as MAT credit under Section 115JAA and can be set off against regular tax liability in any of the subsequent fifteen assessment years.

Yes. Every company is required to file ITR-6 irrespective of whether it has taxable income, has incurred a loss, or has nil income. Section 139(1) mandates return filing for all companies. Filing even a nil or loss return is important because it preserves the right to carry forward business losses and unabsorbed depreciation under Sections 72 and 32(2). A nil return also ensures that the company's PAN remains active and the company can respond to TDS credit mismatches and issue Form 16A to employees.

The due date for filing ITR-6 for a company is 31 October of the assessment year, as all companies are required to get accounts audited under Section 44AB. For companies with international transactions requiring a transfer pricing report under Section 92E, the due date is 30 November of the assessment year. The Central Board of Direct Taxes may extend these dates by notification, as has occurred in recent years. Late filing beyond the extended due date attracts a penalty under Section 234F.

Companies must pay advance tax in four instalments under Section 211: at least 15 percent of estimated tax by 15 June, at least 45 percent by 15 September, at least 75 percent by 15 December, and 100 percent by 15 March of the financial year. Failure to pay advance tax or underpayment triggers interest at 1 percent per month under Section 234B on the shortfall from 90 percent coverage, and Section 234C for each deferred instalment. Advance tax must be paid using challan ITNS 280 through authorised banks or net banking.

Yes. Every company incorporated under the Companies Act, 2013 must file ITR-6 annually from the assessment year following its incorporation. A startup company recognised by DPIIT may claim a tax holiday for three consecutive years out of the first ten years of incorporation under Section 80-IAC, provided it is incorporated on or after 1 April 2016 and its annual turnover does not exceed one hundred crore rupees in any year of the deduction. This deduction must be claimed in ITR-6; it does not apply automatically.

Yes. Unlike individual and HUF returns, ITR-6 can only be filed using a valid digital signature certificate of a director of the company who is registered on the income tax portal. The Income Tax (Electronic Verification) Rules do not permit companies to use Aadhaar OTP, net banking EVC, or other non-DSC verification methods. The DSC must be a Class-3 certificate issued by a licensed certifying authority and must be registered on the income tax portal before the return is uploaded.

A company that has international transactions with associated enterprises must comply with transfer pricing provisions under Sections 92 to 92F of the Income Tax Act. It must maintain contemporaneous documentation under Rule 10D describing the nature and value of transactions, the method used to determine the arm's length price, and benchmarking analysis. It must obtain a chartered accountant's report in Form 3CEB and upload it on the income tax portal before filing ITR-6. The aggregate value of international transactions must be disclosed in Schedule SPI and Schedule TP of ITR-6.

Under Section 234F, a fee of Rs 5,000 applies if the return is filed after the due date but before 31 December of the assessment year. The fee is Rs 10,000 if the return is filed after 31 December. However, where the total income of the company does not exceed Rs 5 lakh, the maximum fee is Rs 1,000. In addition to Section 234F, interest under Section 234A at 1 percent per month on the outstanding tax applies from the due date to the date of filing. Non-filing can also result in best judgment assessment under Section 144 and prosecution under Section 276CC.

A company can carry forward business losses under Section 72 for up to eight assessment years following the year of loss. Unabsorbed depreciation under Section 32(2) can be carried forward indefinitely. Capital losses under Section 74 can be carried forward for eight years but can only be set off against capital gains. For the carry-forward to be available, the return must generally be filed on or before the due date under Section 139(1). Losses can be set off within the year against other heads of income subject to the restrictions in Section 71, and brought-forward losses against business income in subsequent years.