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Filing of Income Tax Return - 6

9450* Basic Package

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Overview

Income Tax return form 6 is a form for the organizations that are not exempted under Section 11 of IT Act 1961. All such entities can use this form to file their Income tax returns. The entities that are exempted under Section 11 of IT Act 1961 are usually the charitable trust or religious properties.

Entities that can file ITR form 6:

Under the Companies Act 2013, every company registered in India shall file their Income Tax return form 6 within the due dates. However, any organization whose income is from any charitable trust or religious organizations are exempted from filing ITR form 6.

The taxpayers responsible for filing ITR form 6 also should obtain their audit report under section 44AB. Section 44AB states that any organization whose annual turnover exceeds INR 1 Crore must get their accounts audited. A practicing chartered accountant should also audit the account.

Entities that cannot file ITR form 6:

1) Individuals

2) Firms

3) Hindu Undivided families

4) Association of persons

5) Organizations that are exempted under Section 11

6) Local Authority

Note:

The organizations that have income from charitable trusts or religious organizations can seek exemption under section 11. This means they shall not file ITR.

Due dates for filing ITR form 6:

Under the provisions of IT Act, 1961, the entities that qualify to file ITR-5 must file their return on or before 31st August. 

Latest Update:

The due dates for filing ITR -6 for the AY 2020-21 has been extended till 30th November 2020. It is done by the Income-tax department as a relief measure for Covid-19. Thus, the Taxpayers can file their return within 30th November.

Penalties for filling ITR-6 late:

As per the provisions made under section 234F, any entity that fails to file ITR form 6 within the due dates will have to pay up to INR 10,000 as a penalty. The penalties shall keep on adding until the date you file your returns.

Advantages

1. ITR receipt is a precious document

When you file your income tax returns, the income tax department provides you a receipt in return. This receipt is a precious document. It contains more detailed data as compared to Form 16. Thus, filing your income tax returns helps you record all your taxations with revenue from different sources.

2. ITR receipt serves as address proof

When an individual files his/her income tax returns, the IT department sends the receipt to the registered address of the person/ entity. Thus, it serves you as your residential proof. You can show it as your proof of address in organizations like banks and NBFCs. 

3. Easy processing of bank loans

Filing your income tax returns offers you various benefits to avail loans. One such is easy processing of bank loans. When you apply for a bank loan, the bank will verify your eligibility. Thus, filing income tax returns makes it easier for you to avail any loan. The returns act as a strong document. It shows the poof of income to the loan provider. 

Whether it is a house credit, personal mortgage, or vehicle loan, you can show provide the copies of your ITR statements for easy processing of the bank loans.

4. Compensation of the losses in the next financial year

Until you file your income tax returns, you cannot compensate for your losses to the next financial year. According to the IT Act, if you do not file your income tax returns on time, your losses will not be adjusted. You cannot compensate losses for the next financial year. Thus, to ensure that you compensate your losses, you must file your Income-tax returns on time. 

5. Avoid extra interests

If you don’t file your income tax returns on time, you will be liable to pay extra interest 1% on the tax as a penalty. This penalty shall keep on adding until you file your returns. For example, a bank deducts taxes at source from the interest of the fixed deposit. In order to claim the refund of the TDS, you must file your taxable income. In case you don’t file your returns then you have to pay extra interest on the deposits, 

6. Avoid penalties

As per the IT Act, if an individual doesn’t file income tax returns on time, he/she will be held liable to pay the penalty up to INR10, 000. and this penalty shall keep on adding until you file your returns.

7. Easy credit card processing

When you apply for credit cards, the banks usually verify your income tax returns. So, if you don’t file your income tax returns, the bank may reject your credit card application. 

8. Hassle-free visa processing 

Sometimes the Visa Authorities may ask you the documents of your past tax returns. Thus, if you are applying for Visa, you must file your income tax returns on time. Filing the IT will eliminate all the hassles in Visa applications. You can get a Visa easily. 

9. Helpful for the freelancers and independent professionals 

The individuals who are independent professionals or freelancers don’t have form 16. Thus it might get difficult for them to avail of any financial benefits. Income tax returns are the only document that shows the proof of income for them. Thus, if you are freelancers or independent professional, you must file you ITR without wasting time. It will eliminate the funding issues and transactional problems.

Disadvantages

1. No carry forward of losses:  

If you do not file your ITR form 6 within the date, you will not be able to carry your losses to the next financial year. Only loss from house property shall carry forward.

2. Interest on unpaid tax:  

Delay filling the ITR form 6 will make you liable to pay an interest 1% for the unpaid tax. It would not come under the penalties. That means this interest is separate from the penalties.

3. Not eligible for interest on refunds: 

When you file your ITR 6 late, you will lose all interest on tax refunds that you paid in advance.

Document Required

  • Aadhar card
  • Pan card
  • A financial statement that includes the balance sheet, profit and loss account
  • Annual report 
  • Auditor report 

Time Lines

  • (3 to 5 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with department
  • Receipt of Acknowledgement
  • Confirmation to client

No Annexure needed:

If your file ITR forms, you are not required to attach any document. You would not add the TDS certificate as well. Any documents attached shall be returned back.

Service Covered

Pricing for what you want required service

Basic

9450*
  • Expert Consultation
  • Company Income Tax Return filing for a taxpayer with taxable income of less than Rs.10 lakhs.

Business

12450*
  • Expert Consultation
  • Company Income Tax Return filing for a taxpayer with taxable income of more than Rs.10 lakhs.

Enterprise

14950*
  • Expert Consultation
  • Company Income Tax Return filing for a taxpayer with taxable income of more than Rs.25 lakhs.
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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