Overview
Income Tax E-Filing of ITR-6 is applicable to companies registered under the Companies Act that do not claim exemption under Section 11. This return is used to report corporate income, taxes, MAT, shareholding details, and audit information.
ITR-6 exists because companies are taxed under a separate corporate tax framework, distinct from individual slabs, rebates, or presumptive schemes.
You must file ITR-6 if your entity is
- A Private Limited Company
- A Public Limited Company
- A One Person Company (OPC)
- Any other taxable domestic or foreign company
Companies claiming exemption under Section 11 must file ITR-7, not ITR-6.
ITR-6 is filed electronically on the portal of the Income Tax Department and must be verified using a Digital Signature Certificate (DSC).
Eligibility Criteria for ITR-6
You are required to file ITR-6 if
- You are a company under the Companies Act
- You earn income chargeable to tax
- You are not claiming Section 11 exemption
- You are a charitable or religious entity (ITR-7 applies)
- You are an individual, HUF, firm, or LLP
Income Covered Under ITR-6
ITR-6 allows reporting of
- Business or professional income
- Income from house property
- Capital gains
- Dividend, interest, and other income
- Foreign income, where applicable
- Income under special tax provisions
Mandatory schedules include
- Profit & Loss Account
- Balance Sheet
- Depreciation
- Shareholding pattern
- Related-party transactions
- MAT computation and MAT credit
Minimum Alternate Tax (MAT) – Critical 2026 Update
New MAT Rate
- MAT rate reduced to 14% (from 15%) effective 1 April 2026
Transition to “Final Tax” (Policy Direction)
Budget 2026 has indicated a gradual transition of MAT towards a final-tax concept, meaning:
- MAT may increasingly operate as a standalone minimum tax
- Accurate computation and reporting is now more critical than earlier years
MAT Credit Restriction – Major Change
For companies opting for Section 115BAA or 115BAB:
- Brought-forward MAT credit can still be used
- Set-off is restricted to 25% of current year tax liability
- Excess MAT credit continues to be carried forward
Incorrect MAT credit utilisation is a high-risk scrutiny trigger.
Share Buyback Taxation – New Disclosure Requirement
Budget 2025 tightened buyback taxation to curb promoter arbitrage.
Tax Impact
- Company pays 20% tax on distributed income (Buyback price – Issue price)
New ITR-6 Disclosure
- Number of shares bought back
- Buyback consideration
- Issue price reference
- Detailed computation under Section 115QA
Improper reporting can result in tax demand or penalty.
Audit Applicability – Digital Transaction Relief
- Standard tax audit threshold applies
- If 95% or more transactions are digital, → audit threshold remains ₹10 crore
This “digital push” relief must be carefully validated with bank and GST data.
Surcharge & Marginal Relief – Important Check
Companies should compute Marginal Relief to ensure surcharge does not exceed the additional income earned. This is often missed in self-filings.
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