All companies registered under the Companies Act in India, whether incorporated or otherwise, are required to file an ITR (Income Tax Return) every year, irrespective of active trading. It is very important to select the right ITR form to stay compliant and avoid penalties. The ITR form you choose will depend on whether the company is domestic or foreign, the type of income being generated, and the business activities being undertaken by the company, etc.
This blog will describe which ITR forms apply to companies, what the eligibility criteria are, filing requirements, and common errors to avoid.
Introduction
The Income Tax Department has laid out ITR forms for different categories of taxpayers. As it applies to companies, they may only have ITR-6 and ITR-7, based on the type of income and activities conducted by the company.
While companies can be classified as individuals or partnerships, companies are separate legal entities under the law. This signifies that even if a company has not generated zero income, incurred losses, or conducted no operations in a financial year, it must submit its returns for that financial year.
Should a company fail to file an Income Tax Return before the deadlines, not only will there be interest and penalties, but there is also a major compliance issue concerning the MCA (Ministry of Corporate Affairs). This makes determining the right ITR form even more important.
Which ITR Forms are Available for Companies?
1. ITR-6 Form
Who files?
All companies registered under the Companies Act, 2013 (or earlier laws), except those seeking exemption under Section 11 i.e charitable or any religious trusts.
Applies to –
- Private Limited Companies
- Public Limited Companies
- One Person Companies (OPC)
- Section 8 Companies (if not claiming exemption under Section 11)
Key Points –
- Must be filed electronically with a Digital Signature Certificate (DSC).
- Applicable even if the company has no income or reports losses.
- Covers income from business, house property, capital gains, and other sources.
2. ITR-7 Form
Who files?
Companies that are required to furnish returns under –
- Section 139(4A) – Income from property held in trust for charitable or religious purposes.
- Section 139(4B) – Political parties.
- Section 139(4C) – Certain institutions, associations, or universities.
- Section 139(4D) – Colleges or institutions not required to furnish return under other provisions.
Applies to –
- Charitable companies
- Religious institutions
- Political parties registered as companies
Key Points –
- Filed by companies claiming exemption under Section 11.
- Must also be verified digitally (DSC).
Summary Table of ITR Applicability
| Type of Company | Applicable ITR Form |
| Private Limited / Public Limited / OPC | ITR-6 |
| Section 8 Company (not claiming Sec 11) | ITR-6 |
| Section 8 Company (claiming Sec 11) | ITR-7 |
| Charitable / Religious Company | ITR-7 |
| Political Party (registered as a company) | ITR-7 |
ITR Filing Requirements for Companies
While filing the ITR, companies would be required to declare –
- The basic information like – The PAN, CIN, date of incorporation, and Registered Office Address
- Financial Information – The profit and loss account, balance sheet, report of income tax audit, if applicable
- Income – Business or Profession, Property, Capital Gains, Other sources of income
- Deductions or Exemptions – That will be as per the Income Tax Act
- Tax Payment – Advance Tax, TDS, TCS, and self-assessment tax
Note- Companies with turnover above the prescribed limits that are subject to audit under section 44AB would be required to have their accounts audited, uploading them along with their return.
Deadlines for Filing Company ITR
- Companies needing an audit – On 30th September of the assessment year.
- Companies needing a transfer pricing report – On 30th November of the assessment year.
- Other companies – On 31st July of the assessment year.
Late filing could lead to –
- Late filing fee for the company under Section 234F.
- Interest under Section 234A, 234B and 234C.
- Loss of the company’s opportunity to carry forward business losses.
Common Mistakes to Avoid
- Filing the wrong ITR form (leads to a defective return notice).
- Not attaching the tax audit report (if applicable).
- Ignoring nil-income filing returns must be filed even if no income.
- Errors in reporting financial statements or a mismatch with MCA filings.
- Delayed filing beyond due dates, causing penalties.
Legal Considerations
- Filing is mandatory under Section 139(1) of the Income Tax Act for all companies.
- Returns must be filed electronically with DSC – physical filing is not allowed.
- Consistency between MCA annual return filings and ITR filings is closely scrutinized.
- Non-compliance with the ITR can lead to prosecution under the Companies Act and penalties under the Income Tax Act.
Conclusion
Selecting the correct ITR form is important for corporate tax compliance. Typically, companies file ITR-6, while ITR-7 is for an entity that is seeking exemption, such as charitable or political companies. A company must file ITR every year, even if it is making a profit or a loss, by the deadline, with audited financials in the ITR.
By filing correctly and on time, companies can avoid penalties and build good standing with the Income Tax Department and the Ministry of Corporate Affairs.
References
The Income Tax Rules, 1962
https://www.incometax.gov.in/
https://incometaxindia.gov.in/
