ITR-6 Form Updated for AY 2025–26 What Taxpayers Must Know
The ITR-6 Form updated under the Income-tax (Sixteenth Amendment) Rules, 2025, has introduced key compliance enhancements for companies other than those claiming exemption under Section 11. Notably, these changes apply retrospectively from April 1, 2025, meaning they impact Assessment Year 2025–26 filings.
This move signals a stronger push by the CBDT towards transparency, ESG compliance, and digital tax enforcement.
What Is the ITR-6 Form?
The ITR-6 is the prescribed income tax return form for companies that do not claim exemption under Section 11 (which pertains to income from property held for charitable or religious purposes).
It’s used by:
- Private limited and public companies
- Indian subsidiaries of foreign entities
- Listed companies not claiming Sec 11 exemptions
Key Amendments in the New ITR-6 Form
1. ESG & CSR Disclosure Mandates
- Companies must now disclose whether they prepare ESG reports (Environmental, Social, Governance).
- Details related to CSR obligations under Section 135 of the Companies Act must also be furnished.
Expert View: This shows increased alignment with SEBI’s BRSR (Business Responsibility and Sustainability Report) push.
2. Foreign Remittance Reporting Enhanced
- New columns added to report outward remittances under the Liberalised Remittance Scheme (LRS).
- Mandatory PAN and country-wise details for each remittance.
Legal Angle: This ties into Section 206C(1G) and 195 TCS/TDS rules on foreign remittances.
3. Audit Trail & Backdated Software Disclosures
- Companies must declare if books of accounts are maintained using audit-trail-enabled software, as per the MCA notification dated March 24, 2021.
- Clarify if the audit trail feature was tampered or disabled at any point.
This will help CBDT match inputs with MCA filings and check backdated manipulations.
4. Updated Schedule for Startup Recognition
- The revised form captures startup registration details under DPIIT and compliance with Section 80-IAC.
- Ensures startups availing income tax benefits submit proof of eligibility.
Tip for startups: Maintain your DPIIT recognition letter and Form 10CCB copy while filing.
Summary Table – What’s New in ITR-6 for AY 2025–26
| Area | New Requirement | Relevant Law/Rule |
|---|---|---|
| ESG Reporting | Disclose ESG reporting status | SEBI BRSR guidelines |
| CSR Compliance | Detailed CSR disclosure | Section 135, Companies Act |
| Foreign Remittances | PAN-wise + country-wise LRS reporting | Sec 206C(1G), Rule 114F |
| Audit Trail Declaration | Confirm MCA audit trail software usage | MCA Notification (24.03.2021) |
| Startup Section 80-IAC | DPIIT regn. & benefit claim under 80-IAC | Income Tax Act, Sec 80-IAC |
Why It Matters
- Ensures greater alignment between MCA and IT filings
- Targets companies with inconsistent CSR, ESG, or foreign transaction disclosures
- May reduce scope for manipulation using backdated entries
FAQs
Q1. Is this change applicable for FY 2024–25?
Yes. Though notified in May 2025, these apply retrospectively from April 1, 2025 (AY 2025–26).
Q2. Can startups skip the new disclosure?
No. All DPIIT-recognised startups claiming Section 80-IAC benefits must provide details.
Q3. How does CBDT verify audit trail compliance?
Through cross-verification with MCA e-filings and possible scrutiny under Section 44AB.
Final Takeaway
The ITR-6 Form updated structure is not just about data collection — it’s about enforcing integrated compliance. Companies must ensure that their accounting systems, MCA records, and income tax returns speak the same language.
The ITR-6 Form has been updated for AY 2025–26 with new ESG, CSR, audit trail, and foreign remittance disclosures. These retrospective changes enhance compliance tracking for companies. Learn what’s new and how to file correctly with expert insights.