Income Tax Return Filing for Companies in India (FY 2025-26)

Filing the income tax return for a company in India is considerably more involved than filing for an individual — it intersects tax audit obligations, advance tax instalments, Minimum Alternate Tax (MAT), and mandatory reconciliation with government-held data. Getting it right the first time matters, because errors attract automated scrutiny notices and potential penalties.

Choosing the Right ITR Form

ITR-6: The Default Form for Companies

Every company incorporated under the Companies Act — private limited, public limited, one-person company, or foreign company with Indian operations — files ITR-6, provided it does not claim an exemption under Section 11 of the Income Tax Act. ITR-6 is filed exclusively online through the Income Tax e-filing portal; there is no paper alternative for companies.

ITR-7: For Trusts, Charitable Bodies, and Section 8 Companies

If your entity is a trust, institution, political party, scientific research association, or a Section 8 (not-for-profit) company that claims income exemption under Sections 11 to 13, ITR-7 is the applicable form. The disclosure requirements in ITR-7 are oriented around the application of income for charitable or religious purposes.

Key Schedules Inside ITR-6

ITR-6 contains numerous schedules that directors and finance teams must populate carefully:

• Schedule BP — Business/profession income computation
• Schedule MAT / MATC — Minimum Alternate Tax and MAT credit utilisation
• Schedule CG — Capital gains
• Schedule OI — Other information, including details of specific disallowances
• Schedule SH — Shareholding details (mandatory for closely held companies)

Incomplete or inconsistent schedules are a common source of defective-return notices.

Due Dates and the Tax Audit Linkage

The filing deadline for a company's ITR depends critically on whether the company is subject to a tax audit under Section 44AB.

These are the standard statutory dates; CBDT frequently issues circulars extending them. Always verify the final due date for the relevant year before filing.

A company's turnover crossing the prescribed threshold in a financial year triggers mandatory tax audit, and the auditor must submit Form 3CA and Form 3CD on the e-filing portal before the ITR is filed. Filing an ITR without the prerequisite audit report, when one is required, renders the return defective.

Advance Tax Obligations

Companies are required to pay advance tax in four instalments during the financial year itself:

1. 15 June — at least 15% of estimated tax liability
2. 15 September — at least 45% of estimated tax liability (cumulative)
3. 15 December — at least 75% of estimated tax liability (cumulative)
4. 15 March — 100% of estimated tax liability

Shortfall in any instalment attracts interest under Sections 234B and 234C. For growing companies, it is prudent to review profitability each quarter and revise advance tax estimates upward rather than waiting until March.

Minimum Alternate Tax (MAT): What Companies Must Know

MAT ensures that companies reporting high book profits but low or nil taxable income — through deductions, exemptions, and depreciation timing differences — still pay a minimum level of tax. The tax is computed as the prescribed percentage of book profit determined under the Companies Act.

Key points for directors:

• MAT applies even if the company has brought-forward losses for income tax purposes.
• If MAT paid in a year exceeds the normal tax liability, the excess is recorded as MAT Credit Entitlement, which can be carried forward and set off against normal tax in future years, subject to the prescribed carry-forward limit.
• The credit is tracked in Schedule MATC in the ITR, and the accuracy of opening MAT credit balances must be verified before filing.
• Certain entities — such as companies operating in specified International Financial Service Centres — may be outside the MAT net; confirm applicability with your tax adviser.

Reconciling with AIS and Form 26AS Before Filing

The Income Tax Department's Annual Information Statement (AIS) now aggregates a wide range of financial transactions: TDS/TCS credits, interest income, dividend income, securities transactions, GST turnover reported by the company, and more. Form 26AS remains the authoritative record of tax deducted and collected at source.

Before filing, every company should:

1. Download the AIS and Form 26AS from the e-filing portal.
2. Match TDS credits claimed in the ITR against what appears in 26AS — claim only what is reflected; unmatched credits are likely to be rejected.
3. Reconcile turnover as reported to the GST system against the turnover disclosed in the ITR. Significant divergence without explanation is a red flag for the department's risk-management system.
4. Check whether dividend income, interest from banks, and proceeds from property or securities transactions appear in the AIS, and ensure they are either included in the return or their non-taxability is correctly explained.

Mismatches between the return and AIS/26AS are the single largest driver of automated notices (under Section 143(1)(a)) and scrutiny selections in recent years.

Common Filing Errors That Trigger Notices

Based on recurring patterns, the following errors frequently result in demands or notices for companies:

• Wrong form selection — filing ITR-6 for an entity that should file ITR-7 or vice versa.
• Unreconciled TDS credits — claiming TDS in the return that does not appear in 26AS, leading to an automatic disallowance.
• Omitting Schedule SH — closely held companies must disclose their shareholder details; missing or incorrect data can trigger inquiries.
• Incorrect depreciation computation — the Companies Act depreciation and Income Tax Act depreciation differ; Schedule DPM must reflect the correct income-tax-basis depreciation.
• Not filing within the due date — a belated ITR filed after the due date cannot carry forward most business losses, which can have a significant tax cost in subsequent years.
• Not verifying the return — an unverified return is treated as not filed. Companies must e-verify using DSC (Digital Signature Certificate); physical ITR-V submission is not available for companies.
• MAT credit errors — overstating brought-forward MAT credit without documentary support from earlier years' returns.

How SSPR Can Help

SSPR & Co. handles end-to-end corporate ITR compliance for companies across industries — from assembling and reviewing financial data, conducting or co-ordinating the mandatory tax audit (Forms 3CA/3CD), computing advance tax instalments, tracking MAT credit positions, and performing AIS/26AS reconciliation, through to filing and e-verification.

Our team flags exposure points before submission, so companies enter the assessment season with confidence rather than waiting to respond to notices. Whether you are a newly incorporated startup filing your first ITR-6 or an established group entity with transfer pricing obligations, we tailor the process to your complexity.

To discuss your company's tax filing requirements for FY 2025-26, contact us or explore our direct tax services.