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ITR Filing AY 2025–26: CBDT Introduces New Updated ITR-6 Form for Domestic and Foreign Companies

Written by: Team Angel OneUpdated on: May 9, 2025, 3:26 PM IST
CBDT unveils updated ITR-6 for AY 2025–26, bringing major changes for companies, including capital gains reporting, buyback adjustments.
ITR Filing AY 2025–26: CBDT Introduces New Updated ITR-6 Form for Domestic and Foreign Companies
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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.

Applicability of the Revised ITR-6

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.

Capital Gains Reporting: Pre and Post-July 23, 2024

A significant update pertains to the capital gains tax structure, split into 2 segments:

  • Before July 23, 2024
     
  • After July 23, 2024

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?

Share Buybacks and Loss Adjustments

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.

Special Provision for Cruise Ship Operators

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.

Enhanced Requirements for Basic Company Information

The new form mandates the disclosure of several core company details, including:

  • PAN and CIN
     
  • Date of incorporation
     
  • Changes in company name (if any)
     
  • Registered office address and contact details
     
  • Date of commencement of operations

This granular data will support accurate identification and verification processes within the Income Tax Department.

Foreign Firms Selling Uncut Diamonds: New Safe Harbour Norms

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.

TDS Reporting and Section 24(b) Disclosures

The revised ITR-6 introduces further transparency through:

  • Mandatory TDS section code disclosure in Schedule-TDS

     

  • Details of deductions under Section 24(b) for home loan interest claims

Such granular disclosures align with the government’s broader aim to strengthen monitoring of income and deductions claimed.

Declaration of Filing Status and Past Notices

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.

Structuring for Administrative Efficiency

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.

Implications for Corporate Compliance

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.

Other ITR Forms and Filing Deadlines

Alongside ITR-6, the Income Tax Department has also released:

  • ITR-1 (Sahaj) and ITR-4 (Sugam) – Released on 29 April 2025
     
  • ITR-3 – Released on April 30, 2025
     
  • ITR-5 – Released on May 2, 2025
     
  • ITR-2 – Released on May 3, 2025

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.

Conclusion

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

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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