The Central Board of Direct Taxes (CBDT) notified the release of the revised ITR-6 form for the Assessment Year 2025–26, under Notification No. 44/2025. This updated form marks a strategic shift in India’s corporate tax filing landscape, aiming to simplify compliance and enhance transparency. The changes come into effect from April 1, 2025 and will apply to all companies, including foreign entities operating in India, excluding those eligible for exemptions under Section 11 of the Income Tax Act.
The new form is mandatory for all companies registered in India that are subject to corporate tax but do not claim exemptions as charitable or religious trusts. Whether domestic or foreign, any company conducting business in India will be required to file returns using this format.
A significant update pertains to the capital gains tax structure, split into 2 segments:
This division stems from changes introduced in the Finance Act, 2024. Companies must compute capital gains in accordance with the respective time periods, ensuring accurate reporting aligned with mid-year regulatory updates.
Read More: ITR Filing for AY 2025–26: Which ITR Form from 1 to 5 Should You Use?
From October 1, 2024, companies will be permitted to offset losses from share buybacks against dividend income declared under "income from other sources". This move introduces clarity for firms engaged in buyback transactions and encourages a more uniform approach to taxation in such scenarios.
A new presumptive taxation scheme under Section 44BBC has been introduced, targeted at non-resident cruise operators. These entities will now need to consider 20% of passenger revenue as taxable profits, streamlining the process and reducing compliance complexities for overseas players in this niche industry.
The new form mandates the disclosure of several core company details, including:
This granular data will support accurate identification and verification processes within the Income Tax Department.
Foreign entities involved in the sale of uncut diamonds in designated special zones will be brought under the safe harbour provision (Rule 10TIA). They must report a minimum 4% profit margin on revenues, with retrospective applicability from April 1, 2024, aimed at increasing compliance in the diamond trading segment.
The revised ITR-6 introduces further transparency through:
Mandatory TDS section code disclosure in Schedule-TDS
Such granular disclosures align with the government’s broader aim to strengthen monitoring of income and deductions claimed.
Companies must clearly declare the section under which the return is filed and disclose whether any previous returns have been filed or if any income tax notices have been received. This adds a level of traceability to corporate filings and can assist in streamlining future assessments.
The updated format is more structured to reduce errors during submission, thereby helping tax officials in faster and more accurate processing. The focus is on creating a comprehensive snapshot of business operations for efficient scrutiny.
These updates reflect a strategic evolution in India’s tax administration, underpinned by goals of transparency and improved enforcement. By collecting more nuanced and structured data, authorities are better equipped to assess compliance and ensure accurate tax collection.
Alongside ITR-6, the Income Tax Department has also released:
These forms are applicable for the financial year 2024–25. The deadline for non-audit cases is July 31, 2025, and for audit cases, it is October 31, 2025.
The introduction of the revised ITR-6 marks a transformative step in India's corporate tax reporting framework. It signals the government's intent to modernise and digitise tax systems for improved compliance, risk monitoring, and efficiency. While the changes may require initial adjustments, they pave the way for a more streamlined and transparent taxation process for companies operating in the country.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 9, 2025, 3:26 PM IST
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