The Central Board of Direct Taxes (CBDT) notified the guidelines for filling the particulars in Income‐tax Return Form‐6 for the Assessment Year 2021‐22 relating to the Financial Year 2020‐21.
Companies other than companies claiming exemption under section 11 must furnish their income tax return in ITR-6 Form. Companies claiming exemption under section 11 are those whose income from the property is held for charitable or religious purposes.
This Return Form can be used by a company as per section 2(17) of the Income Tax Act, This form is filed by a company other than a company that is required to file a return in Form ITR‐7.
As per section 2(17) of the Income Tax Act, the company means Indian Company (Domestic Company), a Body corporate incorporated by or under the laws of a country outside India (iii)Any institution, association or body, whether incorporated or not whether Indian or Non‐Indian which is declared by general or special order of the board to be a company, etc.
This Return Form can be filed with the Income‐tax Department electronically on the e‐filing web portal of the Income‐tax Department (www.incometaxindiaefiling.gov.in) [www.incometax.gov.infrom7‐June‐2021] and verified by way of digital signature only.
Option of Filing ITR in response to notice u/s 153A and 153C is removed from ITR as requirement to file ITR under these sections is omitted.
In the case of a domestic company, the rate of income-tax shall be twenty-five percent. of the total income, if the total turnover or gross receipts of the previous year 2017‐18 does not exceed four hundred crore rupees. For AY 2021‐22 the previous year 2018‐19 is changed to 2018‐19.
In AY 2020‐21, the threshold limit for a person carrying on business was increased from one crore rupees to five crore rupees in cases where the cash receipts or payments by a business don’t exceed 5% of such receipts or such payments, however, in AY 2021‐22, the limit of five crore rupees is increased to ten crore rupees.
The existing restriction of 3 codes in the Nature of business/profession schedule is removed.
In schedule P & L Account at Sl. No. 62, the form has been enabled to capture section-wise profits u/s 44B, 44BB, 44BBA, and 44BBB. In schedule, BP, Income/ receipts credited to profit and loss account considered under the head “other sources” has been bifurcated into 2 parts as “Dividend income” and “Other than dividend income”.
In Schedule BP, Table E “Computation of income from life insurance business
referred to in section 115B ” has been removed in Schedule BP. And corresponding
mapping has been updated in schedule CYLA and Part B‐TI.
In Schedule DPM, the column “3a.Amount as adjusted on account of opting for
taxation section 115BA” and “3b. Adjusted Written down value on the first day of the previous year (3) + (3a)” has been removed. Hence corresponding mapping changes are made in the schedule DPM
CBDT vide notification dated 20th September 2019 increased depreciation to 45% on motor cars, motor buses, etc w.r.t. assets purchased on or after the 23rd day of August 2019 but before the 1st day of April 2020 and are put to use before the 1st day of April 2020. Therefore, no additions will be allowed in the 45% block in the AY 2021‐22 w.r.t. to such assets.
In Schedule CG, the allowable difference between the full value of consideration u/s. 50 C and value of the property as per stamp authority has been increased from 1.05 times to 1.10 times
In Schedule VI A, under part C new deduction is inserted “Section 80M (Intercorporate dividend) for Domestic Company.
In Schedule EI, the field for “Dividend Income” is removed from exempt income as for
AY 2021‐22 onwards dividend income will be taxable in the hands of shareholders. similarly, corresponding Changes are also made in schedule OS, schedule Pass-Through Income (PTI) to remove reference of section 115O
In schedule TPSA, dropdown for the financial year (FY 2019‐20 or FY 2020‐21) for which option u/s 92CE(2A) is exercised in AY 2021‐22 is inserted.
Schedule DDT (Details of tax on distributed profits of domestic companies) has been removed as form AY 2021‐22 onwards companies are not required to pay dividend distribution tax u/s 115 O.
Schedule DI (Details of Investment) has been removed as it was relevant only for AY 20‐21.
In Schedule Part B TI “Sl. No.11b” Part C deductions claimed under chapter VI‐A, restriction of ii5 of BFLA is removed due to deduction claimed u/s 80M.
In Schedule TDS, earlier TDS credit is allowed only if corresponding income is being offered for tax this year, however, an exception is being added for TDS u/s 194N. Also, the label is amended to include form 16D for the claim of TDS.
Annexure 2 is inserted in instructions w.r.t. ITR fields which should be tallied with the corresponding amount mentioned in the Tax Audit report i.e Form 3CA‐3CD/3CB‐3CD, if applicable.
Upload level validations table is modified w.r.t. mapping changes and new rules.
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