FILING OF CORPORATE TAX RETURNS IN INDIA

Corporate tax is the tax imposed on the net taxable income earned by the company. Companies both Private and Public which are registered under the Companies Act 1956, are liable to pay corporate tax. As per the provision of Income–tax Act, 1961 (“Act”), all the corporate taxpayers are mandatorily required to file their income tax returns annually and are liable to pay taxes accordingly. For filing corporate tax returns, the companies have to compute their net taxable income or profits for the whole financial year.

For the purpose of calculating the taxable income arising for business or profession, several adjustments are made to the income earned and the expenditure incurred by the companies during the respective financial year. For example, there are several provisions under the Act, which deals with allowances and disallowances of various expenditures and income and other various concepts such as book profits, minimum alternate tax (“MAT”), and presumptive income are also to be kept in mind while computing gains from business/ profession. Every company is mandatorily required to furnish the return of income, as per section 139(1) of the Act, on or before the due date in the prescribed form and the prescribed manner as may be specified in the Act. For the purpose of filing Income-tax return the department specifies various forms but in case of corporate tax return filing, Form ITR-6, is to be filed.
Form ITR-6 is applicable to all the companies other than a company claiming exemption under section 11(Income from property held for charitable or religious purpose).

The due date of filing the return of income by the corporate taxpayers is 30th September of assessment year and those taxpayers who are required to furnish a report as per section 92E (where TP is applicable) of the Act, their due date for filing their return is 30th November of the assessment year. The tax rate for domestic company is 30% of the total taxable income and for foreign company its 40% of the total income subject to the surcharge rate as specified. Further, any failure in furnishing the return of income before the end of the relevant assessment year , penalty of INR 5000 as specified under section 271F of the Act may be attracted.


The situation of filing of corporate tax returns in India is worst. As per the statistics; out of total population of 134 crore, only 2.8 percent file their return of income and the situation is same when it comes to filing of return by the corporate taxpayers. As per the data released by the Income Tax Department; 52% of the total companies don’t pay any taxes and do not even file their return of income. On the other hand; only 2% of the total companies pay bulk tax of about 92%. It shows that only 40% of the company in India are making profit, as remaining are showing their nil income.