Companies often receive scrutiny notices due to incorrect reporting, MAT miscalculations, or non-compliance with audit provisions. Filing ITR-6 accurately is essential to ensure compliance and avoid penalties.

Who Should File ITR-6?

ITR-6 is applicable for:

• Private Limited Companies
• Public Limited Companies
• One Person Companies (OPC)

Note: Companies claiming exemption under Section 11 (charitable/religious trusts) must not use ITR-6.

Due Dates for AY 2026-27

• Companies (audit mandatory): 30th September / 31st October

Late filing consequences:

• Penalty under Section 234F
• Interest under Sections 234A, 234B, 234C
• Loss of carry forward of losses

Taxation of Companies

1. Corporate Tax Rates

Depending on regime opted:

• 25% for companies with turnover up to ₹400 crore (Section 115BA)
• 22% under Section 115BAA (new regime, no exemptions)
• 15% for new manufacturing companies (Section 115BAB)

Plus surcharge and cess applicable.

1. Minimum Alternate Tax (MAT) – Section 115JB

• Applicable to companies not opting for Section 115BAA/115BAB
• Tax calculated on book profits
• Ensures minimum tax payment

MAT Credit can be carried forward for future adjustment.

Books of Accounts & Compliance

Companies must:

• Maintain proper books under Companies Act
• Follow accounting standards
• Ensure compliance with Income Tax provisions

Key components:

• Profit & Loss Account
• Balance Sheet
• Notes to accounts

Tax Audit (Section 44AB)

Audit is mandatory for all companies.

Audit Report:

• Form 3CD (Tax Audit Report)
• Statutory Audit under Companies Act

Key Adjustments in Company Tax Computation

While filing ITR-6, companies must adjust:

• Disallowances (Section 37, 40(a)(ia))
• Depreciation (Section 32)
• Income recognition as per ICDS
• Related party transactions

TDS & Compliance Checks

• Reconcile income with Form 26AS and AIS
• Verify TDS credits
• Check TDS compliance for:
  • Contractors (Section 194C)
  • Professionals (Section 194J)
  • Rent (Section 194I)

Mismatch may trigger notices.

Advance Tax for Companies

Mandatory if tax liability exceeds ₹10,000:

• 15 June – 15%
• 15 September – 45%
• 15 December – 75%
• 15 March – 100%

Non-payment leads to interest under Sections 234B and 234C.

Important Forms

• ITR-6: Income tax return for companies
• Form 26AS: TDS statement
• Form 3CD: Tax audit report

Transition to Income-tax Act, 2025

Key renumbering:

• Section 32 → Section 205

• Section 44AB → Section 287

• Section 115JB → Section 390

Highlights:

• Introduction of “Tax Year”
• Simplified structure
• No major change in tax rates or MAT concept

Practical Example

A company with ₹10 crore profit:

• Normal tax @25% = ₹2.5 crore

If book profit higher and MAT applicable:

• MAT calculated on book profit ensures minimum tax liability

CA INSIGHT / PRACTICAL TIP

• Choose tax regime (old vs new) carefully—it impacts deductions and MAT
• Ensure consistency between financial statements and tax computation
• Reconcile TDS and income thoroughly to avoid notices
• Plan advance tax properly to avoid interest burden

FAQ SECTION

1. Is ITR-6 mandatory for all companies?
   Yes, except companies claiming exemption under Section 11.
2. Can companies opt for presumptive taxation?
   No, presumptive schemes like 44AD/44ADA are not applicable to companies.
3. What is MAT applicability?
   MAT applies if tax payable under normal provisions is lower than prescribed minimum.
4. What happens if company files ITR late?
   Penalty, interest, and loss of certain benefits like carry forward of losses.
5. Is audit compulsory for companies?
   Yes, both statutory and tax audit are mandatory.

CONCLUSION

Filing ITR-6 correctly is critical for companies to ensure compliance, avoid penalties, and manage tax liabilities efficiently. With structured reporting and evolving tax laws, proper planning and accurate filing are essential for smooth operations.

For expert guidance on this topic, contact your tax professional today.