ITR-6

What is the ITR-6 Form?

Companies apart from companies that which are claiming for exemption under section 11 should refurbish their income tax return in the ITR-6 Form. Companies that can claim exemptions under Section 11 are the ones who hold their income from property for religious or charitable purposes.

ITR 6 applies to all companies except those claiming an exemption under Section 11 of the Income Tax Act. Section 11 applies to income derived from property held under a trust or legal obligation for charitable or religious purposes. Therefore, companies with income used for charitable or religious purposes are not eligible to file ITR 6.

Applicable Entities

Companies registered under the Companies Act of 2013 or the Companies Act of 1956 are required to file the ITR 6 Form. This includes:

• Private Limited Company
• One Person Company
• Public Limited Company

When to File ITR-6 Form?

• According to the Income-Tax Act, accounts must be audited by 31 October of the assessment year.
• The deadline for submitting a report in Form No. 3CEB is 30 November of the assessment year.
• Alternatively, if the accounts do not require an audit, the deadline is 31 July of the assessment year.

Which companies claim an exemption under Section 11?

Under Section 11, the following sorts of entities are eligible to claim exemption:

• Religious Institutions: Temples, mosques, churches, gurudwaras, and other places of worship are involved in religious activities, the spread of a certain religion, and communal welfare.
• Charitable Trusts: Trusts established for charity objectives, such as advancing any other item of wide public use, providing healthcare, advancing education, or helping the impoverished, etc.
• Political Parties: Section 11 exempts political parties registered under the Representation of the People Act, 1951, from paying certain taxes on their income.
• Societies: Non-profit organisations that participate in activities like education, healthcare, promotion of culture, sports, etc. and are registered under the Societies Registration Act.
• Section 8 Companies: Companies formed in accordance with Section 8 of the Companies Act of 2013 (formerly Section 25 of the Companies Act of 1956), which are dedicated to advancing charity endeavours, social welfare, or any other non-profit goals.