The Income Tax Department requires a Company (other than those claiming exemption u/s 11 & 12) to furnish it’s return of income in ITR-6. There have been some key changes introduced in the ITR-6 to be filed for FY 2023-24.

This is covered in a two part series –
1. Additional details to be updated in new ITR-6.
2. New Schedules & Disclosures to be furnished in ITR-6.

This article will cover the first part.

ADDITIONAL DETAILS TO BE UPDATED IN NEW ITR-6

1. REASONS FOR TAX AUDIT UNDER SEC 44AB

The new ITR-6 seeks additional details from companies subject to audit under Section 44AB.

The additional information pertains to the circumstances under which the company is obligated to undergo an audit, such as:

• Sales, turnover or gross receipts exceed the limits specified under Section 44AB;
• Others.

2. AUDIT REPORT ACKNOWLEDGEMENT NUMBER

Companies are required to furnish acknowledgement number of the Audit report filed under Income tax Act. The Form seeks for a separate entry for each of the Audit Reports apart from Sec 44AB.

3. DUE DATE FOR FILING ITR-6

A Company which is subject to tax audit is required to file it’s return of income by 31st October. But if the Company is subject to transfer pricing audit u/s 92E of the Income Tax Act, then the due date for filing it’s return of income will be 30th November. The new ITR captures this detail to avoid ambiguity.

4. MSME RECOGNITION

A Company may choose to be recognized as an MSME entity by registering itself accordingly. Such Companies are required to declare themselves as MSME and furnish the MSME registration in the new ITR-6.

5. DIVIDEND INCOME FROM UNIT IN IFSC

With effect from FY 2023-24, dividend income received from a unit in IFSC (as referred to in Sec 80LA(1A) shall have a reduced tax rate @10% as per provisions of new proviso to Sec 115A (Sec 115A(1)(a)(A)).

Schedule OS in ITR-6 has been duly amended to incorporate this change.

6. LEGAL ENTITY IDENTIFIER (LEI)

The Legal Entity Identifier (LEI) is a 20-character unique alpha-numeric code used to identify parties to financial transactions worldwide, implemented to improve quality and accuracy of the financial data reporting systems for better risk management.

As per the RBI Regulations, all single payment transactions of Rs. 50 crores and above undertaken by entities should include remitter and beneficiary LEI information. This applies to transactions undertaken through the NEFT and RTGS payment systems.

In order to be in line with the RBI regulations, the new ITR-6 has incorporated a column for furnishing details of the LEI number. The company is required to furnish the LEI details if it is seeking a refund of Rs. 50 crores or more.

TAX HELP ON ITR-6

Managing multiple entities in a group and ensuring timely, accurate filing of ITR for each of the entities could be a herculean task. For AY 2024-25, CBDT has extended the tax audit filing deadline from September 30, 2024 to October 7, 2024. While this could sound like a good news, it has it’s repercussions! The extension effectively provides a three-week window for corporates to file their ITR-6. This could be mind boggling for the team that handles ITR filing along with other direct and indirect tax compliances.

HOW CAN WE HELP?

Qualified and experienced professionals at CUA can help you file the tax returns on time. We have hands on experience and can assure you of completing your ITR-6 filing without any hassle! Our services can be customised to suit your preparation, review and filing needs.

Call us on +91 98840 54671 to have a discussion on your compliances in India.

ITR Filing – Why choose us?

SEAMLESS

Effective compliance is a key pillar for growing your finances and career/business. Tax compliance in particular could be cumbersome and at times very stressful. We help you to navigate through the maze of changes to tax laws with ease.

SWIFT

We understand and operate on the principle – “Time is money”. We have a reasonable turnaround time (TAT) which ensures timely tax compliance.

SECURE

We understand the importance of data security and hence operate in a data-secure environment. Onboard us and experience certainty and value for money!

CA Chockalingam K
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