ITR 6 now available on e filing website | What are the latest changes in ITR 6?

Income Tax return for FY 2019-20 were announced, however till date only ITR 1 to 5 and 7 were available for filing. Now ITR 6 is also available for filing on e filing website and with that all ITR are available on e filing website.

So, let’s have a look on what are some important amendments in ITR 6 and who are eligible to file the same.

First of all ITR 6 is the only return available for companies other than section 8 companies i.e. claiming exemption under section 11 of the Income tax act.

Let’s first see who are eligible to file ITR 6 Form:

This Form can be used by Companies other than companies claiming exemption under section 11.

It is also to be noted that companies needs to file its return every year whether or not it earns any positive income.

Below are the major amendments in ITR 6:

1. Schedule DI:

As we know due date for investment under 80C to 80U and 54 to 54G was extended to 30.06.2020 and many of us were confused on how it would be shown in ITR and how would they know that amount paid after 01.04.2020 belongs to FY 2019-20 or 2020-21.

Now CBDT has inserted a new schedule, Schedule DI wherein a person need to mention that out of total deduction how much belongs to April, 2020 to July, 2020 period.

Therefore, still it is self declaration and we still don’t know how will it be known if a person is taking the same deduction twice and for that we need to wait for next year’s ITR.

2. Increase in Audit limit:

In Budget 2020, there was an amendment in section 44AB according to which audit limit of Rs. 1 crore would be enhanced to 5 crore if cash receipts and cash payment is less than 5% of total receipt and total payment respectively.

Also, many people were confused whether the new audit limit would apply for FY 2019-20 or FY 2020-21 and the release of ITR has removed this doubt and the new limit would be applicable for FY 2019-20.

However still complete definition of receipt and payment has not been provided by CBDT used in this provision.

In this regard they have made introduced 2 changes in ITR Form which are again self declaration:

(a2i) If No , Whether during the year Total sales/turnover/gross receipts of business exceeds Rs. 1 crores but does not exceed Rs. 5 crores?

(a2ii) If Yes is selected at a2i, whether aggregate of all amounts received including amount received for sales, turnover or gross receipts or on capital account like capital contributions, loans etc. during the previous year, in cash, does not exceed five per cent of said amount?

(a2iii) If Yes is selected at a2i, whether aggregate of all payments made including amount incurred for expenditure or on capital account such as asset acquisition, repayment of loans etc., in cash, during the previous year does not exceed five per cent of the said payment?

Even though the above information doesn’t provide information it gives a hint that receipt and payment would include all revenue and capital receipt and payment.

3. New section 115BAA and 115BAB added:

As we know 2 new sections were introduced and reduction of tax rate was offered to domestic companies now same has been introduced in ITR for section 115BAA and 115BAB but before that one needs to file Form.

However, one needs to remember that before filing ITR with 115BAA or 115BAB one needs to file form 10-IC or 10-ID as applicable.

This are the three major amendments in ITR 6 other than these everything is the same as previous year.

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