ITR 6 – FY 2020-21 / AY 2021-22

ITR 6 – FY 2020-21 / AY 2021-22

A Company uses this Income Tax Return (ITR) 6 as per section 2(17) of the Income Tax Act; this form is filed by a company other than a company that is required to file a return in Form ITR‐7.

As per section 2(17) of the Income Tax Act, the Company means: ‐

• Indian Company (Domestic Company)
• Body Corporate incorporated by or under the laws of a country outside India.
• Any Institution, Association or Body, whether incorporated or not & whether Indian or Non‐Indian, which is declared by general or special order of the board to be the company, etc. Income Tax Return (ITR) 6 Form – FY 2020-21 / AY 2021-22.

Assessment Year for ITR Form FY 2020-21

This Return Form is applicable for assessment year2021‐22only, i.e., it relates to income earned in Financial Year2020‐21.

Who is Eligible to File ITR-6 for FY 2020-21/ AY 2021-22?

• A company can use this Return Form as per section 2(17) of the Income Tax
• Act, this form is filed by a company other than a company required to file a return in Form ITR‐7.
• As per section 2(17) of the Income Tax Act, the company means: ‐
• Indian Company (Domestic Company)
• Body corporate incorporated by or under the laws of a country outside India.
• Any institution, association, or body, whether incorporated or not & whether Indian or Non‐Indian, which is declared by general or special order of the board to be a company, etc.

Fundamental changes (as compared to ITR for AY 2020‐21)

• Option of Filing ITR in response to notice u/s 153A and 153C is removed from ITR as a requirement to file ITR under these sections is omitted.
• In the case of a domestic company, the rate of income-tax shall be twenty-five percent. Of the total income, if the total turnover or gross receipts of the previous year 2017‐18 does not exceed four hundred crore rupees. For AY 2021‐22, the previous year 2018‐19 is changed to 2018‐19
• In AY 2020‐21, the threshold limit for a person carrying on business was increased from one crore rupees to five crore rupees in cases where the cash receipts or payments by a company don’t exceed 5% of such receipts or such payments; however, in AY 2021‐22, the limit of five crore rupees is increased to ten crore rupees.
• The existing restriction of 3 codes in the Nature of business/profession schedule is removed.
• In schedule P & L Account at Sl. No. 62, the form has been enabled to capture section-wise profits u/s 44B, 44BB, 44BBA and 44BBB
• In schedule, BP, Income/ receipts credited to profit and loss account considered under the head “other sources” has been bifurcated into two parts as “Dividend income” and “Other than dividend income.”
• In Schedule BP, Table E, “Computation of income from life insurance business referred to in section 115B,” has been removed. And the corresponding mapping has been updated in schedule CYLA and Part B‐TI.
• In Schedule DPM, the column “3a. Amount as adjusted on account of opting for taxation section 115BA” and “3b. Adjusted Written down value on the first day of the previous year (3) + (3a)” has been removed. Hence corresponding mapping changes are made in the schedule DPM
• CBDT vide notification dated September 20, 2019, increased depreciation to 45% on motor cars, motor buses, etc. w.r.t. assets purchased on or after the 23rd day of August 2019 but before the 1st day of April 2020 and is put to use before the 1st day of April 2020. Therefore, no additions will be allowed in the 45% block in the AY 2021‐22 w.r.t. to such assets.
• In Schedule VI A, under part C new deduction is inserted “Section 80M (Intercorporate dividend) for Domestic Company.
• In Schedule EI, the field for “Dividend Income” is removed from exempt income as for AY 2021‐22 onwards; dividend income will be taxable in the hands of shareholders. similarly, corresponding Changes are also made in schedule OS, schedule Pass-Through Income (PTI) to remove reference of section 115O
• In schedule TPSA, dropdown for the financial year (FY 2019‐20 or FY 2020‐21) for which option u/s 92CE(2A) is exercised in AY 2021‐22 is inserted.
• Schedule DDT (Details of tax on distributed profits of domestic companies) has been removed as form AY 2021‐22 onwards companies are not required to pay dividend distribution tax u/s 115O
• Schedule DI (Details of Investment) has been removed as it was relevant only for AY 20‐21
• In Schedule Part B TI “Sl. No.11b” Part C deductions claimed under chapter VI‐A, restriction of ii5 of BFLA is removed due to deduction claimed u/s 80M.
• Earlier TDS credit is allowed only if corresponding income is offered for tax this year in Schedule TDS. However, the exception is being added for TDS u/s 194N. Also, the label is amended to include form 16D for the claim of TDS
• Annexure 2 is inserted in instructions w.r.t. ITR fields which should be tallied with the corresponding amount mentioned in the Tax Audit report, i.e., Form 3CA‐3CD/3CB‐3CD, if applicable.
• Upload level validations table is modified w.r.t. mapping changes and new rules.
• In Schedule CFL, the bifurcation of PTI loss and other than PTI loss has been removed from “HP loss,” “Short term capital loss” and “Long term capital Loss” also corresponding changes mapping /other changes are made in field “Loss distributed among the unitholder.”
• In Schedule 80GGA, w.e.f. 01.06.2020, the eligible limit of Donation in cash is changed from Rs. 10,000 to Rs. 2,000. Hence date field is inserted to capture the date of the Donation in cash
• In schedule 80IB, the deductions claimed in the following sections are removed due to the sunset clause, and corresponding mapping changes are made in schedule VI‐A.

What is the period covered during FY 2020-21 / AY 20201-22?

FY 2020-21 is the financial year 2020-21 starting from April 1, 2020, ending on March 31, 2021. AY 2021-22 is the assessment year 2021-22, relevant to the financial year 2020-21 (also called the previous year 2020-21).

Who should not file ITR 6?

The companies who have sources of income from religious or charitable organizations can seek exemption under Section 11. In simpler words, an entity seeking exemption under Section 11 should not file ITR 6 Form.

Who should mandatorily file Income Tax returns?

• This form can be used a person being a firm, LLPs, AOP, BOI; an artificial juridical person referred to in section 2(31)(vii), the estate of deceased, the estate of insolvent, business trust and investment fund, cooperative society, and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.

FAQ’S

Who are eligible for ITR 6?

ITR 6 form is applicable for an assessee who is a company as per section 2(17) of the Income Tax Act, 1961. However, any company which is required to file ITR 7 form cannot opt for ITR 6.

When should we file ITR 6?

ITR 6 Form is to be filed by every company irrespective of its structure registered under the Companies Act 2013 or the earlier Companies Act 1956. However, the companies whose source of income comes from the property held for religious or charitable purposes are not required to file ITR 6 Form.

What is the last date for filing ITR-6 Form FY 2020-21?

FY 2020-21 (AY 2021-22) – November 30 2021 (Revised)