ITR-6 Filing Guide AY 2026-27: Companies India

ITR-6 is the most technically demanding of India's individual income tax return forms, not because the underlying concepts are complicated, but because it requires reconciling financial accounting (under the Companies Act, Ind AS, or AS) with the income tax computation framework, and then reporting that reconciliation across more than 40 schedules. A company that has filed XBRL financial statements with the Ministry of Corporate Affairs still has to translate those financials into a completely different disclosure format for the Income Tax Department.

The October 31 deadline is firm. Unlike salaried taxpayers who typically deal with a July 31 deadline, companies get three additional months, but the work required is correspondingly larger. Tax audits under Section 44AB must be completed before ITR-6 can be filed. Managing both within the same window, without gaps, is the central challenge.

Which Companies Must File ITR-6

The filing obligation is broad: every company as defined under Section 2(17) of the Income Tax Act must file ITR-6, with one exception.

Must file ITR-6:

• Private limited companies
• Public limited companies
• One Person Companies (OPCs)
• Foreign companies with Indian branches
• Nidhi companies
• Producer companies
• Companies under liquidation (until deregistered)
• Loss-making companies with zero taxable income
• Dormant companies (no transactions but still incorporated)

File ITR-7 instead:

• Companies whose income is exempt under Section 11 — this means companies with a valid Form 12A (registration as charitable or religious trust with the Income Tax Department). A Section 8 company (not-for-profit under Companies Act) does NOT automatically qualify. It must have Form 12A registration to use ITR-7. Without that, a Section 8 company files ITR-6.

The dormant company trap: Many promoters believe that if a company made no transactions in FY 2025-26, they do not need to file. This is incorrect. A company remains a legal entity until struck off by the Registrar of Companies (ROC). Every incorporated company must file ITR-6 for every assessment year it exists, even if revenue is zero and all entries in the P&L are nil.

Mandatory DSC E-Filing: Why There Is No Alternative

Section 139(1) read with the relevant notification makes e-filing with DSC mandatory for companies. There are no exceptions.

The DSC must belong to an authorised signatory of the company. For most companies, this is the Managing Director or Director designated for this purpose under the Board Resolution. The ITR-6 utility requires:

1. The authorised signatory's PAN to be registered on the income tax portal
2. A Class 3 DSC (for e-filing purposes) linked to that PAN
3. The XML or JSON file of the completed ITR-6 return
4. Upload and DSC-based e-verification in one session

If a company's DSC has expired, the return cannot be filed until the DSC is renewed. DSC renewal typically takes 1-3 business days through the issuing authority (eMudhra, Sify, NIC, etc.). Companies that allow DSC to lapse in September or October face real deadline risk.

No Aadhaar OTP option: Individual taxpayers can e-verify ITR using Aadhaar OTP. Companies cannot. DSC is the only valid verification method for ITR-6.

Key Schedules in ITR-6 — What Each One Does

Schedule BP: Business and Profession Income

Schedule BP is the core income computation schedule. It starts from net profit as per the profit and loss account (from the books) and makes adjustments required under the Income Tax Act to arrive at income chargeable to tax.

Common adjustments in Schedule BP:

• Add back depreciation per books, deduct depreciation allowable under Section 32 (companies must use the straight-line method under Section 32, not WDV unless they had been using WDV before the Income Tax Act 2025 implementation)
• Add back disallowed expenses under Sections 36, 37, 40, 40A
• Add any income taxable under the Income Tax Act but credited directly to reserves (bypassing P&L)
• Deduct income not chargeable to tax under "business" head (e.g., dividend income exempt under Section 10(34) for domestic companies, to be shifted to "other sources" head)

The end figure in Schedule BP feeds into the total income computation alongside other heads (capital gains, other sources, etc.).

Schedule ICDS: Income Computation Disclosure Standards

The CBDT notified 10 ICDS under Section 145(2), and every company is required to:

1. Compute income following ICDS norms (which differ from Ind AS / AS in several areas)
2. Report any difference between ICDS-computed income and accounting income in Schedule ICDS

The 10 ICDS cover: Accounting Policies, Valuation of Inventories, Construction Contracts, Revenue Recognition, Tangible Fixed Assets, Effects of Changes in Foreign Exchange Rates, Government Grants, Securities, Borrowing Costs, and Provisions/Contingent Liabilities/Assets.

The most common ICDS adjustment issue: ICDS III (Construction Contracts) and ICDS IV (Revenue Recognition) require percentage-of-completion method for long-term contracts. If your company recognizes revenue differently in Ind AS (which may use more judgment-based approaches), the ICDS adjustment can be significant.

Schedule MAT: Minimum Alternate Tax Under Section 115JB

If your company's normal tax liability is below 15% of book profits, MAT kicks in. The computation in Schedule MAT works as follows:

Step 1: Start with book profit as per the P&L.

Step 2: Add back specified items that are debited in the P&L but disallowed for MAT purposes:

• Provision for income tax (current and deferred)
• Provisions that are not ascertainable or are not actual liabilities
• Dividend proposed or paid
• Expenditure related to income exempt under Section 10 (except Section 10(38) long-term equity gains)
• Loss brought forward or unabsorbed depreciation from earlier years (whichever is less)

Step 3: Deduct specified items credited to P&L:

• Dividend income from domestic companies (exempt under Section 10(34))
• Long-term capital gains exempted under Section 10(38) (as applicable)
• Income under Section 115BBF (patent royalty at 10%)
• Any profit on reversal of earlier years' provision that were added back for MAT

Step 4: Apply the MAT rate.

Tax Rate Chart

Corporate Tax Rates — AY 2026-27 (FY 2025-26)

Normal tax is compared with MAT; the higher of the two is payable

Domestic companies — new regime (Section 115BAA)

No deductions under Chapter VI-A. Effective rate with surcharge + cess: 25.17%. MAT does not apply to companies opting for 115BAA.

22%

New manufacturing companies (Section 115BAB)

Set up and commencing production on or after 01 Oct 2019. MAT does not apply.

15%

Other domestic companies (turnover > Rs 400 crore)

Standard rate, subject to applicable surcharge (7% or 12%) and 4% cess.

30%

Other domestic companies (turnover up to Rs 400 crore)

Concessional rate. Surcharge 7% if income > Rs 1 crore, 12% if > Rs 10 crore. 4% cess.

25%

MAT — Section 115JB (applicable to 30%/25% companies)

On book profits. Plus surcharge and 4% cess. Credit carried forward up to 15 years under Section 115JAA.

15%

Source: Finance Act 2025; Income Tax Act 2025; Section 115JB

Companies opting for Section 115BAA or 115BAB are exempt from MAT. If your company chose the 22% new regime under 115BAA (which requires filing Form 10-IC once in the first year of exercise), MAT does not apply at all. This is one of the key benefits of the 115BAA election, and companies should verify whether they filed Form 10-IC if they intended to be in the new regime.

Schedule MAT Credit (Section 115JAA)

When a company pays MAT in a year, the excess of MAT over normal tax becomes MAT credit under Section 115JAA. This credit:

• Can be carried forward for 15 assessment years from the year it arose.
• Is utilised in future years when normal tax exceeds MAT in those years.
• Must be reported in the ITR-6 each year, whether carried forward or utilised, to maintain the credit chain.

Missing even one year's reporting of MAT credit carry-forward can complicate future utilisation. Schedule MAT Credit in ITR-6 requires year-wise disclosure.

Other Significant Schedules

The October 31 Deadline — What Exactly Must Be Done By Then

The ITR-6 due date is October 31, 2026 for AY 2026-27. But in practice, a company's compliance timeline looks like this:

1. Books closure and financial statements (typically by May-June 2026)
2. Statutory audit under the Companies Act (typically June-August 2026)
3. Tax audit under Section 44AB — mandatory for every company (since companies are taxable entities, the tax audit threshold of Rs 1 crore turnover does not exempt companies; under Section 44AB(a), any business with turnover exceeding Rs 1 crore needs a tax audit, and Section 44AB(e) specifically requires companies covered by Section 115JB to get a tax audit regardless of turnover)
4. Form 3CA and Form 3CD (Tax Audit Report) must be filed on the income tax portal by the tax auditor before ITR-6 is filed
5. ITR-6 XML/JSON preparation and DSC-based filing

Transfer pricing addition: If the company has international transactions or specified domestic transactions above thresholds, it also needs a Transfer Pricing Report (Form 3CEB) from a CA. In that case, the deadline extends to 30 November 2026.

Top Errors That Trigger ITR-6 Scrutiny

1. Book Profit vs Net Profit Discrepancy

The MAT computation in Schedule MAT must start from "net profit per the P&L account as per the books maintained under Section 115JB(2)." Some companies use a different profit figure (such as profit after prior period adjustments, or profit before OCI in Ind AS). This creates a mismatch between Schedule MAT and Schedule BP that triggers processing errors or scrutiny notices.

2. GST Turnover vs Income Tax Turnover Mismatch

GSTN data flows directly to the AIS of every GSTIN. If your declared ITR-6 turnover (Schedule GST or Schedule BP) is significantly lower than cumulative GSTR-1 outward supplies, expect an ASMT-10 or Section 143(2) notice asking for reconciliation. Export revenues, exempt supplies, and the difference between GST inclusive and exclusive amounts are common explanations, but they must be documented and ready to provide.

3. Ignoring ICDS Adjustments Because "They Are Small"

Some companies skip Schedule ICDS on the basis that the adjustments are immaterial. ICDS disclosures are mandatory regardless of quantum. Omitting Schedule ICDS makes the return defective under Section 139(9).

4. MAT Credit Chain Breaks

If a company paid MAT in AY 2022-23 and 2023-24 but failed to report carry-forward of credit in AY 2024-25 ITR-6 (perhaps because a different tax preparer handled that year), the credit may be treated as lapsed when the company tries to use it in AY 2026-27 or later. Always carry forward MAT credit in every ITR even in years when no new credit arises and none is utilised.

5. Director Details Incomplete in Schedule DI

Schedule DI requires PAN details of every director. If a director's PAN is omitted or entered incorrectly, the return is flagged. This is particularly an issue for companies with many non-executive directors whose PAN cards are not routinely collected by the finance team.

6. Deferred Tax Reversal Not Adjusted in MAT

Under Ind AS 12, deferred tax entries affect P&L. But for MAT under Section 115JB, Explanation 1(fb) requires deferred tax debit (expense) to be added back to book profits and deferred tax credit (income) to be deducted. Forgetting this adjustment under Ind AS companies is a recurring issue.

Let Tax Garden Prepare Your ITR-6

Tax Garden handles the full corporate ITR workflow: books-to-tax reconciliation, Schedule BP adjustments, MAT computation per Section 115JB, ICDS review, carry-forward tracking, and DSC-based filing before the October 31 deadline. See our tax compliance plans or talk to our team.