ITR Filing of Companies

 ITR-6 Filing for Private Limited, OPC & Public Companies

The correct company ITR form depends on the taxpayer's legal status, applicable exemptions and the assessment year. For AY 2026–27, ITR-6 is generally the income tax return form applicable to companies other than those claiming exemption under Section 11.

What Is ITR-6?

ITR-6 is an income tax return form prescribed for eligible companies to report their annual income, expenses, deductions, financial statements, tax calculations and other required information. The company return form in India contains multiple reporting schedules that help the Income Tax Department assess the corporate taxpayer's financial and tax position.

Which Companies Can File ITR-6?

ITR-6 vs ITR-7 for Companies

ITR-6 and ITR-7 serve different reporting purposes. ITR-6 is generally used by companies not claiming exemption under Section 11. ITR-7 applies to specified taxpayers required to furnish returns under particular provisions, including certain entities claiming charitable or religious exemptions. A Section 8 Company should not automatically select ITR-6 or ITR-7 merely based on its incorporation status. Its income tax registration, exemption claim and applicable return provisions must be reviewed.

Which ITR Company India – How Is the Correct Form Selected?

Company ITR selection should begin with the following checks:

• Confirm the company's legal status and PAN classification.
• Identify whether the company claims an exemption under Section 11.
• Review its income sources and applicable tax provisions.
• Identify the appropriate assessment year.
• Check the prescribed form and reporting schedules.
• Confirm whether additional reports or tax forms are required.

Is ITR-6 Available Online for AY 2026–27?

Yes. The Income Tax Department enabled online filing of ITR-6 for AY 2026–27 on 18 August 2026 and made the offline utility available on 20 August 2026. Companies can use the applicable electronic filing facility to prepare and submit their returns, following the portal's validation and verification requirements.

Documents Required for ITR-6 Filing

The documents and information commonly required include:

• Company's PAN and incorporation details.

• Audited financial statements.

• Balance Sheet and Profit and Loss Account.

• Tax audit report, where applicable.

• Details of directors and shareholders, where required.

• Bank account and financial transaction information.

• Form 26AS and Annual Information Statement (AIS).

• TDS, TCS and advance tax records.

• Depreciation and fixed asset schedules.

• Previous returns and carried-forward loss details.

• Tax regime option details and relevant forms.

• Additional transaction and disclosure records, where applicable.

Corporate Tax Rates – Sections 115BAA & 115BAB

Corporate tax rates in India depend on the company's eligibility, turnover and the tax regime selected. Businesses should not assume that every Private Limited Company is taxed at the same rate. The Income Tax Act provides different rates for eligible domestic companies.

Corporate Income Tax Rates for AY 2026–27

The rates shown exclude applicable surcharge and Health and Education Cess.

Section 115BAA – Corporate Tax at 22%

Section 115BAA allows eligible domestic companies to choose a concessional basic tax rate of 22%. However, companies choosing this option must satisfy the prescribed conditions and generally cannot claim certain exemptions, incentives and deductions. The tax rate must be considered together with the applicable surcharge and cess. A domestic company opting for Section 115BAA is generally subject to a surcharge of 10% and Health and Education Cess of 4%. The effective rate on income taxed at 22% is approximately 25.17%.

Section 115BAB – Corporate Tax at 15%

Section 115BAB provides a concessional tax rate for eligible new domestic manufacturing companies satisfying the prescribed incorporation, commencement and other conditions. The benefit is not automatically available to every manufacturing company. Among other requirements, eligibility depends on the applicable incorporation and manufacturing commencement conditions and restrictions on specified deductions. The concessional 15% rate generally applies to qualifying income. Other income may be subject to different treatment.

Which Tax Regime Should a Company Choose?

Before selecting a tax regime, a company should review:

• Its eligibility for the concessional rate.
• Available deductions and exemptions.
• Business losses and depreciation.
• Existing MAT credit.
• Nature of manufacturing or business activities.
• Long-term implications of the tax regime option.
• Required declarations and prescribed forms.

A lower headline tax rate does not always mean a lower final tax liability.

Forms Required for Concessional Corporate Tax Regimes

For AY 2026–27, the following forms may be relevant:

• Form 10-IB: For eligible companies opting under Section 115BA.
• Form 10-IC: For eligible domestic companies opting under Section 115BAA.
• Form 10-ID: For eligible new manufacturing companies opting under Section 115BAB.

These options and their deadlines should be reviewed carefully before the company files its income tax return.

Income Tax Filing for Companies With No Turnover or Losses

A company does not become exempt from income tax return filing merely because it has not generated revenue. Newly incorporated companies, inactive companies and businesses reporting losses must review their tax obligations.

Is ITR Filing Mandatory for a Zero-Turnover Company?

Yes. A company generally has an annual income tax return filing obligation even when it has zero turnover. For example, a Private Limited Company incorporated in January 2026 that has not started sales by March 2026 would generally still be required to file its return for AY 2026–27. However, any expenses, bank interest, capital transactions or other relevant financial information should be accounted for correctly.

Company ITR Filing With No Business Activity

A company may have no sales but still incur expenses such as:

• Incorporation and registration expenses.
• Office rent.
• Accounting and professional charges.
• Bank charges.
• Software subscriptions.
• ROC compliance expenses.
• Employee or consultant payments.

These transactions must be reviewed to determine their appropriate accounting and income tax treatment.

• Can a Loss-Making Company File ITR-6: Yes. A company reporting a business loss can generally file ITR-6, provided the form is applicable to the company. For example, if a company earns revenue of Rs.12 lakh but incurs eligible business expenditure of Rs.15 lakh, it may report a business loss after the required tax adjustments. The loss should be calculated and disclosed correctly.

• Carry Forward of Company Business Losses: Eligible business losses may be carried forward to future years, subject to income tax provisions. For many categories of losses, filing the return within the prescribed due date is necessary to preserve the carry-forward benefit. The company should also check restrictions that may apply to the set-off of losses.

• Impact of Changes in Shareholding: In certain closely held companies, changes in shareholding can affect the ability to carry forward and set off business losses under Section 79. Companies planning a share transfer, funding round or ownership restructuring should review these conditions before relying on accumulated tax losses.

• Important Point for Newly Incorporated Companies: A company's first income tax return should be prepared based on its actual accounting period and financial records. A nil-income return should not automatically be treated as a return containing no transactions.

Directors' Remuneration, Dividends & TDS Compliance

Payments made by a company to its directors, shareholders, employees and other parties may affect its income tax return. Correct classification and reporting are important because different payments can attract different tax and TDS provisions.

• Tax Treatment of Directors' Remuneration: A company may pay remuneration to directors through salary, sitting fees, commission or other arrangements. The income tax treatment depends on the nature of the payment and the relationship between the company and the director. For example, salary paid under an employer-employee relationship may be subject to salary-related TDS provisions. Certain non-salary payments to directors may attract TDS under Section 194J.

• Director Sitting Fees and Commission: Director sitting fees and commission should be recorded under the appropriate accounting and tax categories. The company should examine applicable TDS provisions and maintain supporting documentation.

• Dividend Payments by Companies: Dividends are generally taxable in the hands of shareholders under the applicable provisions. A company distributing dividends may have withholding tax obligations, depending on the shareholder category, payment amount and other relevant conditions. The company should also maintain dividend payment records and applicable tax deduction details.

• Loans and Transactions With Directors: Loans, advances and other transactions involving directors or shareholders may have tax implications. For example, certain payments or loans involving closely held companies may require examination under the deemed dividend provisions. The company should review the nature of each transaction rather than assuming it has the same treatment as an ordinary business expense.

Common TDS Requirements

Depending on the transactions, companies may need to comply with TDS provisions relating to:

• Employee salaries.
• Professional and technical fees.
• Contractor payments.
• Rent.
• Interest.
• Dividends.
• Director-related payments.
• Payments to non-residents.

Reconciliation Before Filing ITR-6

Before filing its annual return, a company should reconcile:

• Salary and director remuneration records.
• TDS deductions and deposited amounts.
• Applicable TDS returns.
• Form 26AS and AIS information.
• Related-party transaction records.
• Dividends and other relevant financial disclosures.

Incorrect classification or reporting can result in tax differences, interest, disallowances or additional compliance requirements.

ITR-6 Schedules & Financial Statement Reporting

ITR-6 contains detailed schedules for reporting the financial and tax information of eligible companies. Understanding the applicable schedules helps businesses organise their documents and reduce filing errors.

What Information Is Required in ITR-6?

The return generally includes details relating to the company's identity, business activities, income, expenses, tax computation and financial statements. Additional schedules may apply depending on the nature of the business and its transactions.

Important ITR-6 Reporting Areas

Financial Statements Required for Company ITR Filing

Companies should generally prepare and review:

• Balance Sheet.
• Statement of Profit and Loss.
• Relevant financial statement notes.
• Fixed asset and depreciation schedule.
• Tax computation statement.
• TDS and advance tax records.
• Tax audit reports, where applicable.
• Other applicable statutory disclosures.

• Reporting Related-Party Transactions: Companies undertaking transactions with directors, shareholders, group companies or other related parties should review the reporting requirements. The transactions must be properly accounted for, and additional tax disclosures may be required depending on their nature.

• International and Transfer Pricing Reporting: A company entering into qualifying international transactions or specified domestic transactions may have transfer pricing compliance obligations. These may include prescribed documentation and an accountant's report in Form 3CEB. Such requirements depend on statutory conditions and should not be assumed to apply merely because a company has overseas customers.

• Digital Signature for ITR-6: Company ITR filing generally requires verification through a valid Digital Signature Certificate of the authorised signatory. The DSC must be properly registered and functional on the Income Tax e-filing portal.

How to File ITR-6 Online

The general filing process involves:

• Finalising the company's financial statements and accounts.
• Preparing the corporate income tax computation.
• Completing applicable audit and statutory reports.
• Selecting AY 2026–27 and the relevant ITR-6 utility.
• Entering or importing the required financial information.
• Completing the applicable schedules.
• Validating the return and resolving errors.
• Paying outstanding tax, where necessary.
• Submitting the return electronically.
• Verifying the return through the prescribed DSC process and retaining the acknowledgement.

Revised ITR, Updated Returns & Income Tax Notices

A company may discover an error after submitting its income tax return or receive a communication from the Income Tax Department. The available response depends on the type of error, filing status, assessment year and relevant legal provisions.

• Revised Company Income Tax Return: A revised return allows eligible taxpayers to correct certain omissions or incorrect statements in an earlier return. For AY 2026–27, revised returns are governed by the applicable provisions of the Income Tax Act, 1961. The company must submit the revised return within the prescribed statutory period and follow the relevant filing and verification requirements.

• Updated Return – ITR-U: An updated return may be available in certain circumstances under Section 139(8A), subject to prescribed conditions. The updated return mechanism can allow eligible taxpayers to disclose additional income within the applicable period. However, it cannot generally be used to reduce tax liability, increase a refund or increase a loss. Additional tax and statutory restrictions may apply.

• Common Income Tax Notices Received by Companies

Companies may receive notices or communications relating to:

• Incorrect or incomplete return information.
• Differences between income and tax records.
• TDS and advance tax mismatches.
• Unreported or incorrectly reported income.
• Defective returns.
• Outstanding tax demands.
• Requests for supporting documents.
• Scrutiny or other assessment proceedings.

Defective Return Notice Under Section 139(9)

An income tax return may be considered defective if prescribed information is missing or the filing does not meet applicable requirements. The Income Tax Department may provide an opportunity to correct the defect within the permitted time. A company receiving such a notice should review the specific deficiency and submit the appropriate response.

How to Respond to an Income Tax Notice

The company should:

1. Identify the notice type and assessment year.
2. Check the statutory response deadline.
3. Review the stated issue or discrepancy.
4. Collect relevant financial and tax documents.
5. Prepare an accurate response.
6. Submit the response through the applicable process.
7. Retain the acknowledgement and supporting records.

Why Professional Review Can Help

Corporate tax notices may involve complex financial and legal issues. Professional review can help a company understand the notice, identify the correct supporting records and prepare its response according to the relevant provisions.