How Companies File ITR 6 for AY 2026-27 in India

ITR 6 is the most technically demanding of India's 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 dozens of 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 normal due date for a company is 31 October. For AY 2026-27, CBDT Circular 07/2026 dated 28 September 2026 extended it to 21 November 2026 (and the audit report date from 30 September to 21 October 2026). Unlike salaried taxpayers who typically deal with a July 31 deadline, companies get several more 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, 1961 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 claiming exemption under Section 11 (income from property held for charitable or religious purposes). A Section 8 company (not-for-profit under the Companies Act) does NOT automatically qualify: it needs registration with the Income Tax Department under Section 12A/12AB (applied for in Form 10A or 10AB) to claim the exemption and file 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

Rule 12 of the Income-tax Rules, 1962 and the ITR 6 instructions require a company to file its return electronically under a digital signature. There is no paper or EVC route for companies.

The DSC must belong to the person who verifies the return under Section 140: the Managing Director, or where there is none (or the MD is unavailable), any director. 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 (computed on the written down value of each block of assets at Income-tax Rules rates, which usually differs from Companies Act depreciation; only power undertakings may opt for straight-line)
• 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 chargeable under another head (e.g., dividend income, which has been taxable under "Income from Other Sources" since FY 2020-21, and capital gains) so it is reported in the right schedule

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 applies instead. Our dedicated MAT under Section 115JB company guide explains book-profit adjustments and MAT credit in full. 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 (other than Section 10(38), which no longer applies)

Step 3: Deduct specified items credited to P&L or allowed by the Explanation:

• Income exempt under Section 10 (other than Section 10(38)) credited to P&L
• Brought-forward loss or unabsorbed depreciation as per books, whichever is less
• Income under Section 115BBF (patent royalty taxed at 10%)
• Any amount withdrawn from a provision or reserve that was added back for MAT in an earlier year

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 on or after 01 Oct 2019 and commenced production by 31 Mar 2024. 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 1961, Sections 115BAA, 115BAB, 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.

The ITR 6 Due Date: What Exactly Must Be Done By Then

The ITR 6 due date for AY 2026-27 is 21 November 2026 for companies without transfer pricing reports (normally 31 October, extended by CBDT Circular 07/2026 dated 28 September 2026). 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, if turnover exceeds Rs 1 crore (Rs 10 crore where cash receipts and payments are each within 5%). A company below these limits needs no tax audit, but its accounts are still audited under the Companies Act, and every company falls in the same due-date category under Explanation 2 to Section 139(1), so the 21 November 2026 due date applies. A company paying MAT also needs a CA report in Form 29B under Section 115JB(4).
4. Form 3CA and Form 3CD (Tax Audit Report), where applicable, must be uploaded on the income tax portal by the tax auditor, and accepted by the company, by 21 October 2026 (extended from 30 September 2026 by Circular 07/2026), 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 ITR due date is 30 November 2026 and Form 3CEB is due by 31 October 2026. Circular 07/2026 did not change these dates.

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

GST return data is reported in the Annual Information Statement (AIS) of the company's PAN. If the turnover declared in ITR 6 is significantly lower than the outward supplies reported in GSTR-1 and GSTR-3B, the company can expect a query from the Income Tax Department, and the mismatch is a common reason for selection for scrutiny under Section 143(2). 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 apply to every company following the mercantile system, regardless of quantum, and the schedule should be completed accurately; an incomplete return can draw a defect notice 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 CPC may not allow the credit when the company tries to use it in AY 2026-27 or later until the chain is corrected. 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 Part A-GEN

The "key persons" section of Part A-GEN asks for the name, designation, address, PAN and DIN of every managing director, director, secretary and principal officer who held office during the year. Missing or wrong details here are a common cause of errors and follow-up queries. 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, income-tax includes deferred tax (Explanation 2), so a deferred tax charge debited to P&L must be added back to book profits, and a deferred tax credit is generally reduced. 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 due date. See our tax compliance plans or talk to our team.

Frequently Asked Questions

Does a company with zero income or no transactions still need to file ITR 6?

Yes. Every company registered in India must file ITR 6 for each assessment year until it is struck off by the Registrar of Companies, even if it had no revenue, no transactions or a loss. For AY 2026-27 the due date for a company without transfer pricing transactions is 21 November 2026, extended from 31 October by CBDT Circular 07/2026.

Can a company e-verify ITR 6 with Aadhaar OTP?

No. A company must file and verify ITR 6 using a valid Digital Signature Certificate of an authorised signatory, usually a director. Aadhaar OTP, net banking and EVC are available only to individuals and some other assessees. Renew any expired DSC well before the due date to avoid missing it.

Does MAT apply to a company that has opted for the 22% tax rate under Section 115BAA?

No. A domestic company that has opted for Section 115BAA at 22%, or Section 115BAB at 15% for eligible new manufacturers, is outside Minimum Alternate Tax under Section 115JB. However, it cannot use any MAT credit brought forward from earlier years, so companies with large unused MAT credit often delay the switch.

Is dividend received by a company taxable in ITR 6?

Yes. Since FY 2020-21, dividends received by a company are taxable under Income from Other Sources at the company's applicable rate. A domestic company can claim a deduction under Section 80M for dividends it further distributes to its own shareholders at least one month before the return due date.

What is the due date for ITR 6 if the company has international transactions?

A company that must file a transfer pricing report in Form 3CEB under Section 92E has until 30 November 2026 to file ITR 6 for AY 2026-27. The Form 3CEB report itself must be furnished by 31 October 2026. Companies without such transactions must file by 21 November 2026, after CBDT Circular 07/2026 extended the original 31 October date.

For how long can a company carry forward MAT credit?

MAT credit under Section 115JAA can be carried forward for 15 assessment years after the year in which MAT was paid. It can be used in a later year when normal tax exceeds MAT, up to that difference. Report the credit in Schedule MATC every year so the chain of carry-forward stays intact.