Every company must file an income tax return each year, whether or not it earned a profit. A domestic company is taxed at 25% or 30%, or a concessional 22% or 15% if it opts in, files Form ITR-6, and is due by 31 October. Samkhya files your company’s income tax return accurately and on time.
A private limited company is a separate taxable entity and must file an income tax return every year, even with no income. A domestic company is generally taxed at 25% where turnover is within the prescribed limit, or 30% otherwise, but it may opt for a concessional 22% under the special regime (foregoing certain exemptions) or 15% for a new manufacturing company, each with a surcharge and 4% cess. A company that has not opted for the concessional regime may face Minimum Alternate Tax (MAT). The company files Form ITR-6, and because a company’s accounts must be audited, the return is due by 31 October (or 30 November where transfer pricing applies). Filing is mandatory to keep the company compliant.
Filing the company return brings clear benefits:
A company’s taxation has these features:
A company return involves:
A company return is required for:
Filing a company return begins with the statutory audit of the accounts and the computation of total income. The applicable rate is determined, the base 25% or 30%, or the concessional 22% or 15% if the company has opted in, with the surcharge and 4% cess, and MAT is checked where relevant. The income and tax are entered in Form ITR-6, the balance tax paid, and the return filed on the income tax portal with the digital signature of a director. Because a company’s accounts are always audited, the return is due by 31 October, or 30 November where transfer pricing provisions apply. A company must file whether or not it traded, so even a dormant company files a nil return.
For the Return:
For Filing:
Filing a company return follows a clear sequence:
Filing your company return with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team handles the audit, computation, and ITR-6 filing.
Once the return is filed:
A domestic company is taxed at a base rate of 25% where turnover is within the prescribed limit, or 30% otherwise. Alternatively, it may opt for a concessional 22% under the special regime (giving up certain exemptions), an effective rate of around 25.17% with surcharge and cess, or 15% as a new manufacturing company. A surcharge (7% or 12% by income, or a flat 10% under the concessional regime) and a 4% cess apply. A company not under the concessional regime may face Minimum Alternate Tax at 15%. The return, with audited accounts, is due by 31 October, or 30 November for transfer pricing. Corporate rates were left unchanged in the latest budget. A company must file even if dormant.
| Feature | Detail |
| Form | ITR-6. |
| Base Rate | 25% or 30%. |
| Concessional | 22%, or 15% for new manufacturing. |
| MAT | 15%, where applicable. |
| Due Date | 31 October (audit). |
| Filing | Mandatory, even if nil. |
Does a company have to file a return every year?
Yes. Every company must file an income tax return each year, whether or not it earned any income or carried on activity.
How is a private limited company taxed?
A domestic company is taxed at a base rate of 25% or 30%, or it may opt for a concessional 22%, or 15% for a new manufacturing company, with surcharge and cess.
Which form does a company file?
A company files its income tax return in Form ITR-6.
When is a company’s return due?
Because a company’s accounts are always audited, the return is due by 31 October, or 30 November where transfer pricing provisions apply.
What is Minimum Alternate Tax?
MAT is a minimum tax at 15% that can apply to a company not under the concessional regime, ensuring a minimum level of tax is paid.
What if the company had no income?
It must still file a nil return; non-filing attracts a penalty and the loss of the ability to carry forward losses.
