The Central Board of Direct Taxes (CBDT) has recently issued Notification No. 16/2024, dated January 24, 2024. This notification pertains to the Income Tax Return (ITR) Form ITR-6 for the Assessment Year (AY) 2024-25.
Applicability of ITR-6: The ITR-6 form is applicable to companies other than those claiming exemption under section 11. This means that companies that do not have income from property held for charitable or religious purposes can use this form for filing their income tax returns.
Effective Date: The new ITR-6 form will be effective from April 1, 2024. This means that companies will need to use this form for filing their income tax returns for the financial year 2023-24, which will be assessed in the AY 2024-25.
What is the difference between ITR-6 and other forms?
The Income Tax Department has notified various forms for different categories of taxpayers. The applicability of these forms varies depending on the sources of income, the amount of income earned, and the category of the taxpayer1. Here’s a brief comparison of ITR-6 with other ITR forms:
ITR-6:
- It is applicable to companies other than those claiming exemption under section 11.
- Companies whose income does not come from property held for charitable or religious purposes should file ITR-6.
- It can only be filed electronically.
Other ITR Forms (ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-7):
- These forms are applicable to different categories of taxpayers such as individuals, Hindu Undivided Families (HUFs), firms, etc.
- The applicability of these forms depends on the nature and amount of income.
- For example, ITR-1 or Sahaj is for individuals having income from salaries, one house property, other sources (interest, etc.), and having total income up to Rs 50 lakh.
- ITR-2 is for individuals and HUFs not having income from profits and gains of business or profession.
- ITR-3 is for individuals and HUFs having income from profits and gains of business or profession.
- ITR-4 or Sugam is for individuals, HUFs, and firms (other than LLP) having a presumptive income from business or profession.
- ITR-5 is for persons other than individuals, HUFs, companies, and persons filing Form ITR-7.
- ITR-7 is for persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
Conclusion: The notification of the ITR-6 form by the CBDT is an important update for companies. It is crucial for companies to understand the applicability and effective date of this form to ensure compliance with the income tax laws. Companies are advised to consult with their tax advisors or professionals to understand the implications of this notification on their tax filing process.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 16/2024 – Income Tax | Dated : 24th January, 2024
G.S.R. 64(E).—In exercise of the powers conferred by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.—(1) These rules may be called the Income-tax (First Amendment) Rules, 2024.
(2) They shall come into force with effect from the 1st day of April, 2024.
2. In the Income-tax Rules, 1962, in Appendix-II, for Form ITR-6, the following Form shall be substituted, namely: —
[Notification No. 16/2024/F.No. 370142/49/2023-TPL]
SURBENDU THAKUR, Under Secy., Tax Policy and Legislation
Note:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification G.S.R. 908(E), dated the 22nd December, 2023.
