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September 23, 2020

ITR 6 is now available for AY 2020-21. Know all about ITR 6

by shivam jaiswal in Income Tax

ITR 6 is now available for AY 2020-21. Know all about ITR 6

An income tax return is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. Due date for all income-tax return for FY 2019-20 is extended from July 31 2020 and 31 October 31, 2020 to November 30, 2020 to provide relief to taxpayers in view of the current COVID 19 pandemic.

The Central Board of Direct Taxes (CBDT) has notified and released various ITR forms for different purposes. If you file your return using the wrong form, then it will be considered defective. If the defect is not rectified, the return will be regarded as invalid, and the department will treat it as if the person did not file his return. Hence it is extremely important to know which ITR is applicable for which kind of assessee and for what income.

ITR 6 is an income tax return form that is used by companies to e-file income tax return if they do not claim exemption under Section 11 of the Income Tax Act, 1961. Under existing Income Tax rules, companies that can claim exemption u/s 11 are those who have income from property that is held for charitable or religious purposes.

The Central Board of Direct Taxes (CBDT) has notified the income tax return (ITR) form for the assessment year 2020-21. The new form comprises savings benefits for individuals, professionals, business units, and Hindu undivided families (HUF) for the investment made between April 1 and June 30. CBDT released new ITR 6 for AY 2020-21 on 22.09.2020. Here is all you need to know about ITR 6.

Who can file ITR 6?

ITR-6 can be used by companies that are not claiming exemption u/s 11 (Income from property held for charitable or religious purposes).

Who is not eligible to file ITR 6?

The below mentioned taxpayers are not liable to file ITR-6 Form:

  • Individuals, Hindu Undivided Family (HUF), Firm, Association of Person (AOP), Body of Individuals (BOI), Local Authority and Artificial Judiciary Person
  • Companies that claim an exemption under section 11 (Income from property held for charitable or religious purposes)
  • A Company required to file return of income in ITR-7.

What is the manner of filing ITR 6?

  • ITR 6 can be filed with the Income-tax Department electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified by way of digital signature only.
  • No document (including TDS certificate) should be attached with this return form while filing ITR-6
  • If the assessee is liable for Audit u/s 44AB and the accounts have been audited by an accountant, the details of such audit report, auditor along with the date of furnishing it to the department electronically has to be provided.

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What is the structure of ITR 6?

  • Part A: General information
  • Part A-BS: Balance Sheet as on 31st March 2020
  • Part A-BS-Ind AS: Balance Sheet as on 31st March 2020 or as on the date of the business combination
  • Part A-Manufacturing Account for the financial year 2019-20
  • Part A-Trading Account for the financial year 2019-20
  • Part A-P&L: Profit and Loss Account for the financial year 2019-20
  • Part A-Manufacturing Account-Ind AS: Manufacturing Account for the financial year 2019-20
  • Part A-Trading Account Ind-AS: Trading Account for the financial year 2019-20
  • Part A-P&L Ind-AS: Profit and Loss Account for the financial year 2019-20
  • Part A-OI: Other information
  • Part A-QD: Quantitative details
  • Part A-OL: Receipt and payment account of company under liquidation
  • Schedule-HP: Details of Income from House Property
  • Schedule-BP: Computation of income from business or profession
  • Schedule-DPM: Depreciation on plant and machinery
  • Schedule DOA: Depreciation on other assets
  • Schedule DEP: Summary of depreciation on all the assets
  • Schedule DCG: Deemed capital gains on sale of depreciable assets
  • Schedule ESR: Expenditure on scientific research etc (Deduction under section 35, 35CCC or 35CCD)
  • Schedule-CG: Capital gains.
  • Schedule 112A: From sale of equity share in a company or unit of equity-oriented fund or unit of a business trust on which STT is paid under section 112A
  • Schedule 115AD(1)(b)(iiii)- Proviso: From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A
  • Schedule-OS: Income from other sources
  • Schedule-CYLA: Details of income after set off of current year’s losses
  • Schedule-BFLA: Statement of income after set off of brought forward losses of earlier years
  • Schedule- CFL: Details of losses to be carried forward to future years.
  • Schedule –UD: Unabsorbed depreciation and allowance under section 35(4)
  • Schedule ICDS: Effect of Income Computation Disclosure Standards on profit
  • Schedule- 10AA: Deduction under section 10AA
  • Schedule- 80G: Details of donation entitled for deduction under section 80G
  • Schedule 80GGA: Details of donations for scientific research or rural development
  • Schedule RA: Details of donations to research associations etc
  • Schedule- 80IA: Deduction under section 80IA
  • Schedule- 80IB: Deduction under section 80IB
  • Schedule- 80IC or 80IE: Deduction under section 80IC or 80 IE
  • Schedule-VIA: Deductions under Chapter VIA.
  • Schedule-SI: Income chargeable to tax at special rates
  • Schedule-EI: Details of exempt income
  • Schedule PTI: Pass through income details from business trust or investment fund
  • Schedule-MAT: Computation of Minimum Alternate Tax payable under section 115JB
  • Schedule-MATC: Computation of tax credit under section 115JAA
  • Schedule-DDT: Details of payment of Dividend Distribution Tax
  • Schedule BBS: Details of tax on distributed income of domestic company on buy back of shares, not listed on stock exchange
  • Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Summary of tax relief claimed for taxes paid outside India
  • Schedule FA: Details of Foreign Assets and income from any source outside India
  • Schedule SH-1: Shareholding of unlisted company
  • Schedule SH-2: Shareholding of Start-ups
  • Schedule AL-1: Assets and liabilities as at the end of the year
  • Schedule AL-2: Assets and liabilities as at the end of the year (applicable for start-ups only)
  • Schedule DI: Details of investments
  • Schedule GST: Information regarding turnover/gross receipt reported for GST
  • Schedule FD: Break-up of payments/receipts in Foreign currency
  • Part B-TI: Computation of total income
  • Part B-TTI: Computation of tax liability on total income
  • Tax payments:
  • Details of payments of Advance Tax and Self-Assessment Tax
  • Details of Tax Deducted at Source (TDS) on Income (As per Form 16A/16B/16C)
  • Details of Tax Collected at Source (TCS)

The key changes in the ITR-6 Form in AY 2020-21 are:

  • A separate schedule 112A for the calculation of the long-term capital gains on the sale of equity shares or units of a business trust which are liable to STT.
  • The details of tax on secondary adjustments to transfer price under section 92 CE(2A).
  • The details of tax deduction for investments or payments or expenditure made between 1st April 2020 and 30th June 2020.

How to fill out the verification document?

While filling up the data in the income tax return, a taxpayer should also fill up the verification. One has to furnish all the required information in the verification document. Any person making a false statement in the return or in any of the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

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