Corporate taxation is an important source of revenue for the Government. A balance between making the compliance process agile and being as comprehensive as possible is necessary for efficient tax collection. In this article, we are going to explore the income tax return
applicable to corporate assessees.
Applicability Of ITR-6
This ITR form applies to all companies other than those who are claiming exemption under section 11 of the Income-tax Act, 1961.
Contents of the ITR-6
The following pages/schedules can be found when using the return filing utility for the A.Y. 2020-21:
- Part-A General: This schedule requires the input of some basic information about the company. As compared to A.Y. 2019-20, this year, the company also needs to declare whether it has opted for taxation under section 115(BAA) and section 115(BAB). Further, details of capital contributions and capital expenditures in cash are also required under certain conditions.
- General 2: This is an extension of the previous sheet. The details regarding the structure of the group the company belongs to, and key persons and shareholders having a significant holding will have to be entered.
- Nature of business: The applicable business code and the trade name is to be provided in this sheet.
- Part A-BS: The companies who are presenting their financial statements as per the Companies (Accounting Standards) Rules, 2006 will have to provide the balance sheet details in this Schedule.
- Schedule Part A-BS – Ind AS: The companies who are presenting their financial statements as per the Indian Accounting Standards (Ind AS) prescribed under Companies (Indian Accounting Standards) Rules, 2015 will have to provide the balance sheet details in this Schedule.
- Schedule Part A-Manufacturing Account: For manufacturing companies presenting their financials as per the Companies (Accounting Standards) Rules, 2006, amounts as per their manufacturing account will have to be provided here.
- Schedule Part A-Trading Account: This form will require particulars of amounts as per the Trading account if the company presents its financials as per the Companies (Accounting Standards) Rules, 2006.
- Schedule Part A-P & L: The necessary particulars relating to the profit and loss account are required to be filled up in this schedule if the company is presenting their financials as per the Companies (Accounting Standards) Rules, 2006.
- Schedule Part A-Manufacturing Account Ind-AS: For manufacturing companies presenting their financial statements as per the Indian Accounting Standards (Ind AS) prescribed under Companies (Indian Accounting Standards) Rules, 2015, amounts as per the manufacturing account will have to be provided here.
- Schedule Part A-Trading Account Ind-AS: This form will require particulars of amounts as per the trading account if the company is presenting their financial statements as per the Indian Accounting Standards (Ind AS) prescribed under Companies (Indian Accounting Standards) Rules, 2015.
- Schedule Part A-P & L Ind-AS: The necessary particulars relating to the profit and loss account are required to be filled up in this schedule if the company is presenting their financial statements as per the Indian Accounting Standards (Ind AS) prescribed under Companies (Indian Accounting Standards) Rules, 2015.
- Schedule Part A-OI: Initial adjustments under the Income-tax Act to the profit/loss figure is made in this schedule. A new field has been inserted, which requires the assessee to confirm if he is exercising the option u/s 92CE(2A). If he selects ‘Yes’, he will have to fill up ‘Schedule TPSA’ too.
- Schedule Part A-QD: The quantitative details relating to the raw materials, finished goods and by-products of manufacturing/trading entities will have to be provided.
- Schedule Part A-OL: In case the company is in the process of liquidation, the receipts and payments account has to be filled as per this schedule.
- Schedule HP: In case there is any income from house property, the relevant details will have to be filled up in this sheet.
- Schedule BP: The final adjustments to calculate the income under the head profits and gains of business or profession are made in this schedule. This will also include set off of business losses if any.
- Schedule DPM and Schedule DOA: The details relating to depreciation of capital assets are entered according to the respective block of assets.
- Schedule DEP and Schedule DCG: A summary sheet of the depreciation for the year is displayed based on figures entered in the previous schedule. Further, the deemed capital gain on transfer of depreciable assets is also calculated.
- Schedule ESR: This schedule is specifically provided to enter details relating to expenditure on scientific research.
- Schedule CG: The calculation of capital gain or loss is done in this schedule. Particulars of transfer of capital assets and various deductions claimed u/s 54 are to be provided. Further, the amount of capital gains accruing at each advance tax instalment date will have to be entered.
- Schedule 112A: A special schedule is provided for calculation of capital gain or loss arising from the sale of equity shares, equity-oriented funds, or a unit of business trust on which securities transaction tax (STT) has been paid.
- Schedule 115AD(1)(b)(iii)-Proviso: The information required in this schedule is similar to the previous schedule except for the fact that this schedule is applicable for Foreign Institutional Investors (FIIs).
- Schedule OS: The computation of income from other sources is done in this schedule. This would also include bifurcation of the income based on the various advance tax instalment due dates.
- Schedule CYLA and Schedule BFLA: This schedule only indicates the amount of current year losses adjusted in the previous year and the amount of losses brought forward that are adjusted in the current year.
- Schedule CFL: After carrying out all the adjustments in the previous schedule, the details of losses to be carried forward to the future years are entered in this schedule.
- Schedule UD: In this schedule, the unabsorbed depreciation from past years is brought forward and set off against the current year income (if necessary) with the balance amount being carried forward to future years. This schedule also helps to keep track of allowance u/s 35(4).
- Schedule ICDS: The effect of the Income Computation and Disclosure Standards (ICDS) prescribed under the Income-tax Act on the profit or loss of the company is recorded.
- Schedule 10AA: This schedule records the deduction u/s 10AA available in respect of units located in Special Economic Zones (SEZs).
- Schedule 80G: The details of the deductions claimed in respect of donations should be provided in this schedule.
- Schedule 80GGA: This schedule will also require details of donation but specifically in respect of scientific research or rural development.
- Schedule RA: Where any amount has been donated to research associations, the relevant particulars will have to be filled in this schedule.
- Schedule 80-IA, Schedule 80-IB, Schedule 80-IC or 80-IE: The amount of deductions available in respect of the industrial undertaking as per section 80-IA, 80-IB, 80-IC or 80-IE is to be entered.
- Schedule VI-A: All the deductions available under Chapter VI-A to be claimed by the assessee will be entered and displayed here.
- Schedule SI: This schedule displays the income chargeable at special rates and the amount of tax involved.
- Schedule EI: This schedule is used for entering all the particulars relating to exempt income.
- Schedule PTI: Where the assessee receives Pass-Through Income from business trust or investment fund as per section 115UA/115UB, the details relating to the same are recorded in this schedule.
- Schedule MAT: The computation of Minimum Alternate Tax (MAT) under section 115JB will be done in this schedule. The schedule contains separate sections for this computation depending on which set of accounting standards are followed by the assessee.
- Schedule MATC: The details relating to the set-off and carry forward of MAT credit are to be entered in this schedule.
- Schedule DDT: Where the company has declared and paid any dividend during the previous year, the details relating to the Dividend Distribution Tax (DDT) paid by the company will need to be provided in this schedule.
- Schedule BBS: Where the domestic company has bought back shares during the previous year, the details relating to the tax paid in respect of the same will have to be provided in this schedule.
- Schedule TPSA: The details relating to tax paid due to secondary adjustment as per section 92CE(2A) will be provided in this schedule.
- Schedule FSI: This schedule can be used to claim credit of taxes paid outside India as per the Act or the relevant Double Taxation Avoidance Agreement (DTAA).
- Schedule TR and Schedule FA: A summary of the tax relief claimed can be found in Schedule TR. Schedule FA will require the taxpayer to give information relating to various foreign assets/foreign incomes such as Foreign Depository accounts, Foreign Custodial accounts, Interests in foreign entities (whether by way of equity, debt or any other means), Foreign Insurance/Annuity contracts, immovable property, other capital assets, signing authority in foreign bank accounts, foreign trusts, miscellaneous foreign income not already included in earlier schedules, etc.
- Schedule SH-1: An unlisted company other than a company registered under section 8 of the Companies Act, 2013, a company limited by guarantee or a start-up (required to fill Schedule SH-2) will have to provide details of shareholding in this schedule.
- Schedule SH-2: A start-up who has filed a declaration in Form-2 under para 5 of DPIIT notification dated 19.02.2019 will have to provide details of its shareholding in this schedule.
- Schedule AL-1: The details of assets and liabilities will have to be provided in this schedule mandatorily by all unlisted companies other than start-ups as mentioned above.
- Schedule AL-2: The details of assets and liabilities will have to be provided in this schedule mandatorily by start-ups who were required to enter details in Schedule SH-2 mentioned earlier.
- Schedule DI: Where deduction under Chapter VI-A was allowable in respect of any investments, deposits or payments, a grace period had been allotted for the same up to 31.07.2020 for the AY 2020-21. A bifurcation is to be provided for the amounts invested up to 31.03.2020 and those invested between 01.04.2020 to 31.07.2020. Further, even details of investments covered u/s 10AA, section 54 to 54GA, etc. will have to be provided with the appropriate bifurcation.
- Schedule GST: This schedule is aimed at reconciling the turnover figure declared in the income-tax return with the aggregate turnover as declared in Form GSTR-1’s filed in the FY 2019.20.
- Schedule FD: An assessee who is not required to get his accounts audited u/s 44AB of the Income-tax Act has to compulsorily provide details of payments or receipts of foreign currency made as per this schedule.
- Schedule Part B-TI and Part B-TTI: This schedule prepares the final computation of income after extracting the relevant amounts from the other schedules in the return.
- Schedule IT: The details of advance tax and self-assessment tax paid will be entered in this schedule.
- Schedule TDS: This schedule requires the entering of details relating to tax credits arising due to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) provisions under the Income-tax Act.
- Schedule Verification: This is the final page of the return that establishes who the signatory of the return is.
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