FAQs for ITR 6

Question No. 1: Is it mandatory to file form 10IB/10IC/10ID within due date to claim the benefit of New Tax Regime under section 115BA/ 115BAA/ 115BAB respectively ?

Response: Taxpayer is required to file the form 10IB/10IC/10ID within due date as per section 139(1) to claim the benefit of New Tax Regime under section 115BA/ 115BAA/ 115BAB respectively.

Question No. 2: If the taxpayer has filed Form 10IB each year from the year of opting the same first time, then which Acknowledgement number & date to be mentioned in the return of income?

Response: Filing of any of the forms multiple times (i.e for the same section of taxation) is not expected, if filed in time. However, where such filing has been done for any reasons, taxpayers are required to provide details of latest Form 10IB filed. Same holds good for Forms 10IC & Form 10ID also. Please ensure that the form is filed within due date u/s 139(1). If the taxpayer has filed the form beyond the due date, the new tax regime is not applicable for that year. Thus, a new form may be filed afresh next year within the due date. Please note that once opted for new tax regime, taxpayer cannot go out of the same. However, one can move from 115BA to 115BAA/ 115BAB or 115BAB to 115BAA, if other conditions are satisfied.

Question No. 3: Can taxpayer file the revised return with New tax regime if the original return is already filed without opting for New Tax Regime ?

Response: Yes. If taxpayer has filed the form 10IB / 10IC / 10ID within due date then the revised return can be filed by opting the new tax regime in the return.

Question No. 4: Taxpayer is trying to file return after due date by claiming loss from Business & profession which is on account of "Unabsorbed depreciation". Can the said losses be carried forward to next year ?

Response: If the return is filed after due date, then business loss cannot be carried forward to next year as per the Act. Further, if the loss from Business & profession is on account of unabsorbed depreciation then the same needs to be reduced from Schedule CFL & to be entered in Schedule UD to carry forward the same to next year. In the next year the brought forward depreciation losses will be adjusted through entries in Schedule UD & Schedule BFLA.

Question No. 5: How to disclose the "Amount debited to profit and loss account and disallowable u/s. 37“ reported in the audit report in income tax return ?

Response: In the audit report, auditor is required to report the amount disallowable u/s. 37 at the clause 21(a) and 21(g) of form 3CD. Taxpayer is required to report at least the same amount disallowable u/s. 37 in Sl. No. 7k of Part A - OI of ITR which is reported at the clause 21(a) and 21(g) of form 3CD. In case, the amount reported in ITR in Sl. No. 7k of PART A - OI of ITR is less than the amount disallowable u/s. 37 at the clause 21(a) and 21(g) of form 3CD then the difference will be added to the total income of the taxpayer. Similarly, the taxpayer is also required to report at least the same amount in the ITR as reported in audit report for other similar sections which are comparable e.g. 36(1)(ii), 36(1)(iii), 36(1)(va), 37(1), 37(2B), 40(a)(i), 40(a)(ia), 40(a)(ib), 40 (a)(iii), 40(a)(iia), 40(a)(iib), 40(b)/40(ba), 40A(7), 43B, 14A, 41(1), 35(1)(i), 35(1)(ii), 35(1)(iia), 35(1)(iii), 35(1)(iv), 35(2AA), 35(2AB) & 35CCC.

Question No. 6: How to disclose the effect on profit due to ICDS & the method of valuation of stock specified under section 145A?

Response: In the audit report, auditor is required to report the "increase in profit”, "decrease in profit", and "net effect" separately in the columns provided at Sl. No. 13(e) and 14(b). In the return of income at schedule ICDS, the "net impact" on profit due to ICDS adjustments shall be shown separately against each line item. In addition, at schedule OI, Sl. No. 3a the sum of all the positive items of 13(e) and 14(b) shall be shown and at Sl. No. 3b the sum of all the negative items of 13(e) and 14(b) shall be shown. The net difference of 3(a) minus 3(b) is not expected to be less than the difference of all the positive and negative items of 13(e) and 14(b). It is seen that some of the adjustment items of schedule BP are a repeat item in ICDS adjustments also and are separately identifiable. Example. "Adjustments due to depreciation". The impact of such adjustments having dual / multiple impact may be reported using other appropriate columns of schedule BP, to nullify the impact of dual/ multiple adjustment.

Question No. 7: What precautions to be taken to claim TDS/TCS deducted/collected in the hands of others ? Response: To claim TDS/TCS deducted/collected in the hands of other person, kindly ensure that the same details of TDS/TCS deducted/collected are also mentioned in the other person's return of income and same has been given away by the other person in his ITR. Further ensure that the ITR of the other person is filed before filing your ITR.

Question No. 8: If MAT provisions are applicable, which schedules are required to be filled ?

Response: If the MAT provisions are applicable to the Company, both the schedules MAT & MATC are required to be filled in the return of income.

Question No. 9: Taxpayer is not able to file ITR-6 and getting the error that "Dear Taxpayer, ITR-6 is not applicable as per the status of the PAN. Kindly verify the same & file applicable ITR".

Response: ITR-6 can be filed by the taxpayers whose status as per PAN data base is company. Thus, if the taxpayer’s status requires to use other ITRs, using ITR 6 by such assessee may render the return invalid. Therefore, from AY 2023-24, E-filing has taken extra measures to stop such statuses from using wrong form (ITR-6 in this case) in order to help tax payers with this avoidable mistake. However, if the status in the PAN data base is not correct, thereby using ITR 6 would be required, such taxpayers may reach out to E-filing in advance & report the requirement under ENivaran with necessary supporting documents, so that E-filing may provide appropriate enablement.