Ultimate Corporate Income Tax Filing Guide 2025 – Expert ITR-6 Compliance for Indian Companies
As the Assessment Year 2025-26 approaches, corporate income tax compliance is a critical part of sustaining a healthy business ecosystem in India. This extensive guide offers clear, practical, and comprehensive instructions on all aspects of filing ITR-6, the income tax return form applicable for Indian companies, including audit mandates, MCA reporting, detailed tax law sections, common filing pitfalls, detailed FAQs, real-world examples, and a forward-looking outlook to prepare your firm for compliant success.
1. Understanding Corporate Income Tax & ITR-6
Corporate Income Tax is levied on companies’ operational and financial profits within India. All domestic companies must report income earned globally, while foreign companies filing Indian returns are taxed on India-sourced income.
What is ITR-6?
The ITR-6 form is designated exclusively for companies (except charitable companies exempt under Section 11). It records income from business/profession, capital gains, and other sources while requiring disclosures on audits and tax provisions as mandated by law.
Who Should File ITR-6?
- All domestic companies registered under the Companies Act
- Foreign companies operating a permanent establishment in India
- Companies earning any taxable income other than agricultural income
Who is Exempt?
- Companies claiming exemption under Section 11 (charitable trusts & institutions) file the ITR-7 instead.
- Limited Liability Partnerships (LLPs) and other unincorporated firms file different forms.
2. Corporate Tax Rates for AY 2025-26
| Company Type | Income Tax Rate | Surcharge | Health & Education Cess |
|---|---|---|---|
| Regular Domestic Company | 30% | 7% (₹1-10 crore turnover), 12% (>₹10 crore) | 4% |
| Domestic Company opting under Section 115BAA | 22% | 10% | 4% |
| New Manufacturing Company under Section 115BAB | 15% | 10% | 4% |
| Foreign Company | 40% | 2% (₹1-10 crore turnover), 5% (>₹10 crore) | 4% |
3. Important Compliance Deadlines (AY 2025-26)
| Compliance Task | Deadline |
|---|---|
| Tax Audit Report Submission (Form 3CA/3CB & 3CD) | 30th September 2025 |
| ITR-6 Filing Without Transfer Pricing | 31st October 2025 |
| ITR-6 Filing Including Transfer Pricing | 30th November 2025 |
| MCA Annual Financial Statements Filing (AOC-4) | Within 30 days of AGM |
| MCA Annual Return Filing (MGT-7/MGT-7A) | Within 60 days of AGM |
| Cost Audit Report Filing (CRA-4) | Within 180 days of FY end |
4. Comprehensive Document Checklist for ITR-6 Filing
- Permanent Account Number (PAN) of the company
- Digital Signature Certificate (DSC) of authorized representative
- Audited Financial Statements (Balance Sheet, Profit and Loss Account) for FY 2024-25
- Tax Audit Reports (Forms 3CA/3CB and 3CD)
- Cost Audit Report (CRA-4) where applicable
- Form 26AS for tax deducted at source credit
- Details on advance tax and self-assessment tax payments
- Bank statements and reconciled accounting records
- Capital gains and other income-supporting documentation
5. Step-by-Step Guide to Filing ITR-6
- Login: Access the official Income Tax e-filing portal at www.incometax.gov.in.
- Choose Assessment Year & Form: Select AY 2025-26 and the ITR-6 form.
- Verify Auto-Populated Details: Income, tax credits, and deductions are prefilled—review and correct as needed.
- Complete Required Schedules: Accurately fill schedules covering business income, capital gains, deductions, and tax computation.
- Upload Audit Reports: Attach digital copies of tax and cost audit reports, signed by the CA.
- Validate & Submit: Check for errors, digitally sign using DSC, and submit your return.
- E-Verification: Complete e-verification within 30 days to validate your filing.
- Download Acknowledgement: Save the ITR-V for safe keeping and future reference.
6. Audit & MCA Compliance Essentials
- Tax Audit: Mandatory if turnover/receipts exceed ₹1 crore; submit Form 3CA/3CB & 3CD along with ITR-6.
- Cost Audit: Required under Companies Act for specific sectors with turnover > ₹75 crores; file CRA-4 on MCA portal.
- Secretarial Audit: Applicable for listed and large public companies as per law; related to governance compliance.
- MCA Annual Filings: File financial statements (AOC-4) and annual returns (MGT-7 or MGT-7A) matching Income Tax disclosures.
7. Deep Dive into Key Income Tax Provisions
Section 44AB – Tax Audit
Mandates audit by a Chartered Accountant if turnover > ₹1 crore (business) or receipts > ₹50 lakh (profession). Audit reports (3CA/3CB & 3CD) must accompany ITR-6.
Sections 80IA to 80RRB – Deductions
Allow deductions related to infrastructure, employment, patent incomes with specified compliance and documentation.
Section 115JB – Minimum Alternate Tax (MAT)
Ensures companies pay a minimum 15% tax on book profits, limiting tax avoidance through excessive exemptions.
Section 43B – Deduction on Actual Payment
Certain expenses deductible only when actually paid (e.g., taxes, provident fund contributions), not merely accrued.
Transfer Pricing (Sections 92 to 92F)
Regulates pricing of transactions between related entities to prevent profit shifting; detailed documentation and audit required.
Sections 115BAA and 115BAB
Optional concessional tax schemes for new companies with trade-offs on exemptions.
Sections 234A, 234B, 234C – Interest on Delayed Filing or Payment
Interest levied on late return filing and advance/self-assessment tax payments.
Penalties under Section 271(1)(c)
Up to 100% penalty on evaded tax for concealment, false statements, or inaccurate reports.
Section 139(1) – Return Filing Requirement
Mandates timely filing of returns with prescribed forms.
Section 147 – Income Escaping Assessment
Reopening of assessments allowed within 6 years if escaped income detected.
8. Common Mistakes & How to Avoid Them
| Error | Impact | Solution |
|---|---|---|
| Wrong ITR form selection | Return rejected or defective | Confirm eligibility for ITR-6 beforehand |
| Late filing | Penalties and interest | Plan and set reminders well ahead |
| Missing audit report uploads | Return defective or penalty | Ensure CA provides timely signed audit reports |
| Not completing e-verification | Return not accepted | E-verify promptly with DSC |
| Mismatched TDS details | Scrutiny and refund delays | Reconcile Form 26AS thoroughly pre-filing |
9. Frequently Asked Questions
- Is manual filing of ITR-6 allowed? No, only electronic filing is allowed for companies.
- Are all companies required to get a tax audit? Only if turnover or receipts exceed prescribed limits under Section 44AB.
- What if e-verification is missed? The return will be considered invalid; you must re-file and verify.
- Are startups eligible for concessions? Yes, if they satisfy conditions under Sections 115BAA or 115BAB.
10. Best Practices & Pro Tips
- Integrate accounting and tax software for real-time compliance checks and MCA filing synchronization.
- Begin audit and document preparation early to avoid bottlenecks.
- Reconcile TDS and GST regularly to avoid return rejection due to data mismatches.
- Keep consistent and audited records with clear audit trails for easy reference.
11. Essential Government Portals & Resources
- Income Tax E-filing Portal for returns and TDS filings.
- Ministry of Corporate Affairs (MCA21 Portal) for financial statements and annual returns.
- TDS Reconciliation Portal to check and reconcile deducted tax.
- GST Portal for indirect tax compliance related to business transactions.
12. Summary
Corporate tax compliance can be complex, but following a structured approach greatly simplifies ITR-6 filing. Understanding the tax laws, adhering to audit and MCA requirements, avoiding common errors, and using technology smartly position your company to meet regulatory demands smoothly and cost-effectively.
For updated tools, expert insights, and detailed support, visit cmaknowledge.in — empowering your corporate tax journey with confidence and precision.