ITR 6 Form

ITR 6 Form: Complete Guide for AY 2026-27

Every company registered under the Companies Act 2013 — private limited, public limited, One Person Company, or Section 8 — that does not claim exemption under Section 11 of the Income Tax Act, 1961 must file ITR-6. For AY 2026-27 (income earned April 2025 – March 2026), the deadline is 31 October 2026, and because a statutory tax audit is mandatory for all companies, the Form 3CA/3CD must be uploaded before you can submit this return. Companies under the concessional regimes of Section 115BAA (22% rate) or Section 115BAB (15% rate) are exempt from MAT but must have filed Form 10-IC or Form 10-ID in time to lock that choice.

Who Must File ITR-6 — and Who Must Not

ITR-6 is the designated return for companies that fall outside the Section 11 charitable-trust exemption. In practice, that covers:

• Private limited and public limited companies registered under the Companies Act 2013, regardless of turnover
• One Person Companies (OPCs) — often overlooked, but an OPC is a company under the Act and must file ITR-6
• Section 8 companies (not-for-profit companies) that do not claim exemption under Section 11 — for example, a Section 8 company whose objects are not "charitable" within the definition of Section 2(15), or one that has not applied for registration under Section 12A/12AA/12AB
• Foreign companies with Indian-source income file ITR-6 if they are companies and not otherwise prescribed a different form

Who must not file ITR-6:

This distinction matters because some Section 8 companies mistakenly file ITR-7 on the assumption that "not-for-profit" equals "charitable trust." Unless the Section 8 company holds a valid registration under Section 12A or 12AB and actually claims Section 11 exemption, it is an ITR-6 filer.

Section 115BAA vs Section 115BAB: Choosing the Right Regime

The two concessional corporate tax regimes introduced in 2019 remain fully operative for AY 2026-27. The choice between them — or the decision to stay in the old regime — has lasting consequences because both options are irrevocable once exercised.

Section 115BAA: The 22% Regime for Existing Companies

Any domestic company can opt for Section 115BAA, which taxes income at a basic rate of 22%. With a flat 10% surcharge and 4% health-and-education cess, the all-in effective rate works out to:

> 22% × 1.10 × 1.04 = 25.168%

This is significantly below the standard 30% base rate for companies under the old regime. However, the trade-off is strict: the company surrenders almost all deductions and incentives. Specifically, a company under 115BAA cannot claim:

• Section 10AA (SEZ units)
• Section 32(1)(iia) (additional depreciation at 20%)
• Section 32AD, 33AB, 33ABA, 35, 35AD, 35CCC (investment and R&D allowances)
• Chapter VI-A Part C deductions (80IC, 80IE, 80IB, 80IACB, etc.) — except Section 80JJAA (employment of new employees) and Section 80M (inter-corporate dividend deduction), which are permitted
• Brought-forward losses or unabsorbed depreciation that arose in prior years solely on account of the above-excluded deductions (this is a trap for companies mid-way through a multi-year deduction window)

Minimum Alternate Tax (MAT) under Section 115JB does not apply to 115BAA companies. This is a genuine cash-flow advantage for companies with large book profits but thin taxable income.

Section 115BAB: The 15% Regime for New Manufacturers

Section 115BAB is available only to domestic companies that were incorporated after 1 October 2019 and commenced manufacturing or production of an article or thing by the date as notified by the government. The base tax rate is 15%; the effective all-in rate is:

> 15% × 1.10 × 1.04 = 17.16%

The conditions are stricter than 115BAA: the company must be a new entity (not a reconstituted, split, or amalgamated existing business), must not use second-hand plant and machinery beyond prescribed thresholds, and must not use a building previously used as a hotel or convention centre. If these conditions are violated in any year, the company loses 115BAB for that year and is taxed at 22% under 115BAA.

Regime Comparison at a Glance

Filing Form 10-IC Before You File ITR-6

If your company is opting for Section 115BAA for the first time in AY 2026-27, you must file Form 10-IC on the income tax portal (incometax.gov.in) on or before 31 October 2026 — and in practice, file it before you submit the ITR-6 itself.

This is a separate electronic form under Rule 21AE of the Income Tax Rules. Once filed, the option applies to all subsequent assessment years automatically; you do not refile it every year. But if you miss filing it in the year you first want to claim the regime, courts and the CBDT have taken varying positions on whether a condonation or late filing is possible — it is a contested area you do not want to test.

Three things to confirm before filing Form 10-IC:

1. The company has no pending deduction entitlement under 80IC, 80IE, 10AA, or similar sections that it is still within the time window to claim. Once you opt for 115BAA, those deductions are permanently lost.
2. The company has not claimed MAT credit under Section 115JAA in prior years with the intention of using it against future tax. MAT credit accumulated before 115BAA cannot be used after opting in.
3. The company's financials for FY 2025-26 have been reviewed under the new regime's computation before you irrevocably commit.

For Section 115BAB, the equivalent is Form 10-ID, filed under Rule 21AEA.

Key Reporting Changes in AY 2026-27 ITR-6

The AY 2026-27 version of ITR-6 carries forward several disclosure enhancements introduced in prior years and tightens a few more:

Schedule BP (Business Income Computation): This schedule requires explicit add-backs for disallowances under Section 14A (expenditure incurred on exempt income), Section 40(a) (TDS disallowances), and Section 43B (certain deductions allowed only on actual payment). The breakup between cash and non-cash items under 43B has been expanded, specifically to capture GST, PF, ESI, and bonus payouts.

AIS/TIS Pre-Filled Data: The Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) now feed substantially more pre-filled data into ITR-6 — TDS credits, advance tax challans, GST turnover reported by the company's counterparties, and securities transactions. Reconciling the AIS data against your own books before submitting the return is not optional; mismatches trigger automated scrutiny notices.

Schedule FA (Foreign Assets): Directors and shareholders who are Indian residents and beneficial owners of foreign assets must ensure their company-level disclosures tie to the Schedule FA data. There is no de minimis threshold.

Schedule TPSA (Transfer Pricing Safe Harbour): Companies with international transactions or specified domestic transactions that want to apply the safe harbour rules must populate this schedule and separately file Form 3CEB.

ESOP-linked expenses: The ITR-6 for AY 2026-27 requires clearer disclosure of employee stock option (ESOP) cost, including the phased recognition difference between accounting standards (Ind AS 102) and the income tax treatment under Section 17(2)(vi).

Tax Audit Linkage: Forms 3CA, 3CB, and 3CD

Every company is mandatorily required to get its accounts audited under Section 44AB of the Income Tax Act. There is no turnover threshold — the obligation arises from the entity type, not the revenue. This means:

• Form 3CA applies when the company is already required to get its accounts audited under any other law (which is always the case under the Companies Act 2013).
• Form 3CB applies when there is no other statutory audit requirement — rare for companies, but possible for a foreign company or a dormant company in a specific situation.
• Form 3CD is the detailed statement of particulars that accompanies both 3CA and 3CB.

The tax auditor uploads Form 3CA/3CD directly on the income tax portal and links it to the company's PAN. The company must then accept the tax audit report in its e-filing account before the ITR-6 can be submitted. This creates a hard dependency: the tax audit must be complete before the return can be filed.

For companies with international transactions or specified domestic transactions, a Transfer Pricing (TP) audit report in Form 3CEB must be filed by a Chartered Accountant. This moves the ITR-6 due date from 31 October 2026 to 30 November 2026 for AY 2026-27.

Critical Schedules You Cannot Ignore

ITR-6 is a dense form — well over 30 schedules in the full version. Most of these are auto-populated or NIL for a typical company, but the following require active attention:

Schedule CG (Capital Gains): Any sale of listed or unlisted shares, mutual funds, land, or buildings must be reported here with the cost of acquisition, fair market value as of 1 April 2001 (if applicable), and holding period. Post the Finance Act 2024 amendments, the indexation benefit for assets acquired before 23 July 2024 has specific transitional rules — review carefully for assets disposed of in FY 2025-26.

Schedule OS (Income from Other Sources): Interest on FDs, dividends received from domestic or foreign companies, and income from sub-letting must all go here. Note that dividends from domestic companies are now fully taxable and do not get any Section 80M deduction unless the company has paid dividend to its own shareholders (i.e., 80M applies to the payer, not the receiver of inter-corporate dividends, subject to conditions).

Schedule MAT (Minimum Alternate Tax): Applicable only to companies under the old regime. The schedule requires you to start from book profit under Companies Act financials and make prescribed adjustments — it is not the same as your income tax computation.

Schedule SH-1 (Shareholding of Unlisted Companies): All shareholders holding equity as at the end of the year must be listed with their PAN, number of shares, and consideration. Errors here are common and attract notices.

Part A-BS and Part A-P&L: These are the balance sheet and profit & loss account as per the company's audited financial statements, recast into the ITR-6 format. Any mismatch between these schedules and Form 3CD figures is a red flag in automated processing.

Due Dates, Penalties, and the True Cost of a Late Return

Section 234F imposes a late fee that is separate from and in addition to any tax dues:

• Return filed after due date but on or before 31 December 2026: Rs. 5,000
• Return filed after 31 December 2026: Rs. 10,000
• If total income is Rs. 5 lakh or less: capped at Rs. 1,000 (rarely relevant for companies)

Section 234A charges interest at 1% per month or part thereof on the amount of tax payable (after deducting TDS, TCS, and advance tax) from the due date to the actual filing date. This is cumulative.

The strategically expensive consequence is Section 72(3): a belated return loses the right to carry forward business losses to future years. For a company in the growth or start-up phase, this is often worth multiples of the Section 234F fee.

Worked Example: Why the 31 October Deadline Is Worth Rs. 10 Lakh+

Scenario: A mid-stage technology company has a business loss of Rs. 2.8 crore in FY 2025-26. It misses the 31 October 2026 deadline and files its ITR-6 on 15 November 2026.

Direct monetary cost:

On paper, Rs. 5,000 seems trivial. But the company cannot carry forward Rs. 2.8 crore of business losses under Section 72(3) because the return was belated.

Future tax cost: In year 2, the company turns profitable with a taxable income of Rs. 2.8 crore. Under 115BAA at an effective rate of 25.168%, tax on that income = Rs. 70.47 lakh. If the carry-forward had been preserved, the set-off would have reduced taxable income to zero, saving Rs. 70.47 lakh in tax.

The real cost of the 15-day delay: Rs. 70.47 lakh — not Rs. 5,000.

Second scenario: A manufacturing company with Rs. 10 lakh self-assessment tax unpaid files on 5 January 2027 (67 days late; rounds up to 3 months):

• Section 234F: Rs. 5,000 (filed before 31 December 2026 – no, wait, 5 January 2027 is after 31 December, so Rs. 10,000)
• Section 234A: Rs. 10 lakh × 1% × 3 months = Rs. 30,000
• Total extra cost: Rs. 40,000 — in addition to losing any unreconciled carry-forward losses

Step-by-Step Filing Workflow for ITR-6

Follow this sequence to avoid rework:

1. Close the books for FY 2025-26 and get the statutory audit under the Companies Act completed. The tax audit cannot begin until the financial statements are finalised and signed.

1. Complete the tax audit. Your Chartered Accountant uploads Form 3CA and Form 3CD on the income tax portal. You, as the company (through a director's login), must accept the tax audit report before the return is submitted.

1. Reconcile TDS, TCS, and advance tax. Download AIS and TIS from the income tax portal. Compare every TDS credit entry against your own deduction records. Disputes must be raised with the deductor — the ITR will be processed based on AIS data if you do not flag mismatches.

1. Determine the tax regime. If opting for 115BAA for the first time, file Form 10-IC on the portal now — before you touch the ITR. If already in 115BAA from a prior year, verify you have not inadvertently claimed prohibited deductions in the P&L computation.

1. Prepare the tax computation. Compute income under Schedule BP (business), Schedule CG (capital gains), Schedule OS (other sources). Apply MAT computation if under old regime. Cross-check depreciation under the Income Tax Rules against the Companies Act depreciation — these often differ and Schedule DPM needs both.

1. Populate ITR-6 on the portal or through the offline JSON utility. Enter all schedule data, validate using the built-in validation tool, and generate the JSON file.

1. Attach the DSC (Digital Signature Certificate) of any authorised director and submit. ITR-6 cannot be verified using Aadhaar OTP or EVC — DSC is mandatory.

1. Confirm receipt. Download the ITR-V acknowledgment. No physical posting to CPC Bengaluru is required — DSC submission is the final step.

Common Mistakes That Create Scrutiny and Penalties

1. Claiming 115BAA and still deducting additional depreciation. Schedule BP add-backs are scrutinised. Any Section 32(1)(iia) claim in books that is not added back in the tax computation triggers a mismatch.

2. Filing the ITR before the tax audit is accepted. The system allows submission, but the audit report linkage fails and the return is treated as defective under Section 139(9).

3. Ignoring the AIS mismatch before submission. High-value TDS credits in AIS that do not appear in your books (or vice versa) lead to demands under Section 143(1) even if you are actually entitled to the credit.

4. Confusing Form 3CA with Form 3CB. Companies, having a Companies Act audit, must use Form 3CA. Using 3CB creates a structural mismatch in the ITR-6 audit linkage fields.

5. Treating the Schedule SH-1 shareholding list as optional. For unlisted companies, this is mandatory. Gaps in PAN data for shareholders cause processing delays and notices.

6. Assuming MAT does not apply merely because profits are low. MAT is computed on book profit under the Companies Act, not on taxable income. A company with large depreciation reversals or provisions written back can face a significant MAT liability even in a marginal-profit year — unless it is under 115BAA.

7. Missing Form 10-IC when switching to 115BAA. If you compute taxable income at 22% in your ITR-6 but have not filed Form 10-IC, the return will be processed at 30% and a demand will be raised automatically.

8. Overlooking the transfer pricing extended deadline. If the company has international transactions but does not file Form 3CEB, it misses both the 30 November deadline and the audit report requirement, exposing it to penalty under Section 271BA (Rs. 1 lakh) and transfer pricing additions.

Key Takeaways

• ITR-6 is mandatory for all companies not claiming Section 11 exemption — including OPCs and non-profit Section 8 companies that are not registered under Section 12A/12AB.
• Section 115BAA (25.168% effective) and Section 115BAB (17.16% effective) offer lower rates at the cost of deductions; once opted, they are irrevocable — model the numbers before committing.
• File Form 10-IC before the ITR-6 if opting for 115BAA for the first time in AY 2026-27; missing this form means the concessional rate cannot be claimed for the year.
• Tax audit (Form 3CA/3CD) must be accepted by the company on the income tax portal before ITR-6 can be submitted — plan your CA's timeline accordingly.
• The 31 October 2026 due date is hard for non-TP companies; TP companies get 30 November 2026 — but the loss of carry-forward rights under a belated return can cost far more than the Rs. 10,000 Section 234F fee.
• Reconcile AIS/TIS before filing to prevent automated Section 143(1) demands on TDS mismatches.
• Dormant companies are not exempt — even a company with zero transactions must file ITR-6 if it is registered under the Companies Act and has not been struck off.