Complete Guide — ITR Filing for Companies & Trusts (FY 2025-26 / AY 2026-27)
Companies and trusts are among the most complex taxpayer categories in India — each operating under distinct legal frameworks, tax rates, and compliance obligations. A private limited company, public company, or One Person Company (OPC)is a separate legal entity entirely distinct from its shareholders and directors. It has its own PAN, files its own income tax return, and pays tax at rates prescribed specifically for companies under the Income Tax Act, 1961. All companies — whether profit-making or loss-making — must file ITR-6 every yearwithout exception. There is no turnover threshold or exemption for non-filing.
The most significant tax planning decision for companies is choosing between the regular 30% rate (with MAT at 15% of book profit) and the concessional 22% rate under Section 115BAA (no MAT applicable, but irrevocable once exercised). New manufacturing companies may opt for 15% under Section 115BAB. Choosing the wrong regime can result in significantly higher tax — and unlike individual taxpayers, companies cannot switch back once the concessional regime is opted.
Trusts, NGOs, and charitable institutions operate under an entirely different taxation framework. Entities registered under Section 12A/12AB and approved under Section 80G can claim near-complete exemption from income tax on income applied for charitable purposes. However, this exemption is conditional on strict ongoing compliance — including annual ITR-7 filing, maintaining audited accounts, and ensuring at least 85% of income is applied for charitable purposes in the same financial year. Non-compliance can result in cancellation of registration and full taxation of accumulated corpus at 30%+.
Taxvio, based in Khatauli (Muzaffarnagar, UP), provides comprehensive ITR-6 and ITR-7 filing services for companies and trusts across Uttar Pradesh and pan-India. Our CA-led team handles MAT computation, 12A/80G annual compliance, tax audit coordination, Form 9A/10 filings, and timely e-filing via DSC — starting ₹2,999.
ITR-6 vs ITR-7 — Which Form Does Your Entity File?
For All Companies
ITR-6
Mandatory for all private limited companies, public limited companies, One Person Companies (OPCs), and foreign companies operating in India. The only exception is a company claiming income tax exemption under Section 11 — which must file ITR-7 instead.
- ✓Private Limited Companies (Pvt. Ltd.)
- ✓Public Limited Companies (Ltd.)
- ✓One Person Companies (OPC)
- ✓Section 8 Companies not claiming Sec 11 exemption
- ✓Foreign Companies with Indian operations
- ✓All companies — regardless of turnover or profit/loss
📋 Key requirements: Audited financials, MAT computation, Form 3CA/3CD, DSC filing
For Trusts & Exempt Entities
ITR-7
Filed by entities claiming income tax exemption under Sections 10, 11, or 12 of the Income Tax Act — or required to file under Sections 139(4A), 4B, 4C, or 4D.
- ✓Charitable & Religious Trusts (12A/12AB registered)
- ✓Section 8 Companies claiming Section 11 exemption
- ✓NGOs & Societies registered under Societies Act
- ✓Political Parties (Section 139(4B))
- ✓Educational Institutions & Hospitals (Section 10(23C))
- ✓Research Associations & Mutual Funds (Section 139(4D))
📋 Key requirements: 85% income application, Form 9A/10 if accumulating, Form 10B/10BB audit
Income Tax Rates for Companies — FY 2025-26 (AY 2026-27)
Choosing the right tax regime is one of the most impactful decisions for company tax planning. Once the concessional regime is opted, it cannot be withdrawn.
| Regime / Section | Applicable To | Tax Rate | MAT Applicable? |
|---|---|---|---|
| Regular Rate (Section 115A) | All domestic companies (default) | 30% | Yes — 15% of book profit |
| Section 115BAA (Concessional) | Domestic companies — irrevocable option | 22% | No — MAT not applicable |
| Section 115BAB (New Mfg. Co.) | New manufacturing companies post Oct 1, 2019 | 15% | No — MAT not applicable |
| Foreign Companies | Foreign companies with India operations | 40% | Yes |
| Surcharge (income ₹1–10 Cr) | All companies | 7% | — |
| Surcharge (income > ₹10 Cr) | All companies | 12% | — |
| Health & Education Cess | All companies | 4% | — |
| Effective Rate (115BAA + cess) | Domestic — concessional | 25.17% | No MAT |
* Advance tax for companies: 15% by June 15 | 45% by Sept 15 | 75% by Dec 15 | 100% by March 15. Shortfall attracts interest under Sections 234B and 234C.
MAT (Minimum Alternate Tax) — What Every Company Must Know
MAT under Section 115JB is the most frequently misunderstood aspect of company taxation. Errors in MAT computation lead to understated tax payments and interest demands.
📊 How MAT Works
- →MAT applies when regular income tax < 15% of book profit
- →Book profit = Net profit as per P&L adjusted for specific additions and deductions prescribed under Section 115JB
- →Common additions: depreciation as per books, provisions for deferred tax, provisions for losses of subsidiary companies
- →Common deductions: depreciation as per Section 32, brought-forward losses (whichever is lower of b/f losses or unabsorbed depreciation)
- →Final MAT = 15% of computed book profit + surcharge + cess
💳 MAT Credit — 15-Year Carry Forward
- →Excess MAT paid over regular tax becomes MAT credit under Section 115JAA
- →MAT credit can be carried forward for 15 assessment years
- →MAT credit is utilised in years when regular tax exceeds MAT liability
- →Critical: MAT credit must be correctly reported in ITR-6 every year — any error results in permanent loss
- →Companies opting for Section 115BAA (22%) are fully exempt from MAT — existing MAT credit lapses on opting 115BAA
Tax Exemption Framework for Trusts & NGOs — 12AB, 80G & Section 11
The trust exemption framework requires active ongoing compliance — not just one-time registration. Missing any annual compliance step can trigger full taxation.
| Section / Form | Purpose | Benefit | Annual Requirement |
|---|---|---|---|
| Section 12A / 12AB | Registration of charitable / religious trust | Income applied for charitable purposes is exempt | Re-registration every 5 years — Form 10AB |
| Section 80G | Donor deduction approval | Donors can claim 50%–100% deduction on donations | Renewal every 5 years — Form 10AB with 12AB |
| Section 11 & 12 | Primary exemption clauses | 85% income applied for charitable purpose = exempt | 85% application rule must be met annually |
| Form 10B / 10BB | Trust audit report | Mandatory audit for income > ₹5 lakh | Filed annually along with ITR-7 |
| Form 9A | Deemed application | Extends application deadline by 1 year for income not applied | Filed before ITR due date if applicable |
| Form 10 | Accumulation statement | Allows income accumulation for specific purpose for up to 5 years | Filed before ITR due date if applicable |
| Form 10BD | Donor statement (80G cases) | Reports donor-wise donation details including PAN | Due by 31st May annually |
⚠️ Critical: Trusts that miss the 85% application-of-income threshold and do not file Form 9A or Form 10 before the ITR due date will have the unapplied income taxed at the maximum marginal rate (30%+). Taxvio tracks this deadline proactively for every trust client.
Key Business Deductions Available to Companies (ITR-6)
IT Act Depreciation
Block-wise depreciation on plant & machinery, computers, vehicles, and furniture at IT Act rates — separate from Companies Act book depreciation.
Employee Costs
Salaries, PF, ESI, gratuity provisions (within limits), ESOPs, and all employee welfare expenses — fully deductible.
Director Remuneration
Managerial remuneration paid to directors, subject to Companies Act limits and disclosure requirements in the ITR-6 return.
Interest on Borrowings
Interest on loans, debentures, and working capital facilities. Section 94B thin capitalisation rules may cap deductions for companies with significant foreign borrowings.
R&D Expenditure
100% deduction on revenue expenditure on in-house R&D facilities approved by DSIR under Section 35 — a key benefit for technology companies.
Brought-Forward Losses
Business losses carried forward for 8 years, unabsorbed depreciation carried forward indefinitely — subject to continuity-of-ownership conditions under Section 79.
CSR Spending — NOT Deductible
CSR expenditure under Companies Act Section 135 is generally NOT deductible under Section 37(1). This is one of the most common errors in company ITRs — Taxvio checks this.
Transfer Pricing Adjustments
Companies with related-party international transactions must comply with transfer pricing rules. Arms-length pricing documentation required under Sections 92A–92F.
MAT Credit Utilisation
MAT credit from previous years can be utilised in the current year when regular tax exceeds MAT — correctly reported in ITR-6 to prevent permanent loss.
Consequences of Non-Compliance for Companies & Trusts
Companies and trusts face the most severe consequences among all taxpayer categories. For trusts, non-compliance can be existential — triggering cancellation of registration.
⚠️ Section 234F Penalty
Entity: Companies & Trusts
₹5,000 late filing fee
Automatic penalty for ITR-6 or ITR-7 filed after the October 31 due date.
⚠️ Section 234A/B/C Interest
Entity: Companies
1% per month on outstanding tax
Interest on unpaid tax, advance tax shortfall, and deferment of quarterly instalments.
⚠️ Section 271B — Audit Penalty
Entity: Companies & Trusts
0.5% of turnover, max ₹1.5L
Failure to file tax audit report (Form 3CA/3CD or Form 10B/10BB) by 30th September.
⚠️ MAT Credit Lapse
Entity: Companies
Permanent loss of tax credit
Incorrect ITR-6 filing can result in MAT credit not being properly recorded — permanently losing up to 15 years of carry-forward benefit.
⚠️ Trust Registration Cancellation
Entity: Trusts & NGOs
Full corpus taxable at 30%+
Failure to file ITR-7 or violation of 85% application-of-income rule can lead to 12A/12AB cancellation — effectively destroying the trust's financial structure.
⚠️ Section 276CC Prosecution
Entity: Company Directors
Imprisonment for directors
Persistent non-filing of company ITR can trigger prosecution of directors under Section 276CC — a serious personal liability risk.
Documents Required for Company & Trust ITR Filing
Prepare these in advance to ensure smooth, accurate, and timely ITR-6 and ITR-7 filing.
🏢 For Companies (ITR-6)
- ✓Audited Balance Sheet, P&L Account, and Notes to Accounts
- ✓Depreciation schedule (both Companies Act and IT Act rates)
- ✓Tax audit report (Form 3CA/3CD) — from statutory auditor
- ✓Form 26AS and AIS for the company PAN
- ✓TDS certificates received (Form 16A from clients/banks)
- ✓Advance tax payment challans (Form 280)
- ✓MAT computation worksheet (book profit reconciliation)
- ✓Previous year's ITR and MAT credit brought-forward details
- ✓Director DIN details and remuneration details
- ✓GST returns — GSTR-1, GSTR-3B, GSTR-9
- ✓DSC of MD/CEO/authorised signatory for e-filing
🕌 For Trusts / NGOs (ITR-7)
- ✓12A / 12AB registration certificate from Income Tax Department
- ✓80G approval certificate (if applicable)
- ✓Audited accounts — Receipt & Payment, Income & Expenditure, Balance Sheet
- ✓Details of all income received (donations, grants, interest) and sources
- ✓Details of income applied for charitable purposes with supporting bills
- ✓Form 9A (if income not applied — intent to apply next year)
- ✓Form 10 (if income accumulated for specific purpose — up to 5 years)
- ✓Form 10B / 10BB audit report (income > ₹5 lakh)
- ✓Form 10BD filed and Form 10BE issued (if 80G approved)
- ✓FCRA registration (if foreign donations received)
- ✓Form 26AS and AIS for the trust PAN
Taxvio's 6-Step Filing Process for Companies & Trusts
ITR-6 and ITR-7 are the most complex returns in the Indian income tax system. Our structured process ensures complete accuracy, MAT tracking, and deadline compliance.
Entity Assessment & Tax Regime Identification
We assess whether ITR-6 (company) or ITR-7 (trust/NGO) applies, verify registration status (12A/12AB/80G for trusts), and identify any tax regime elections — particularly whether Section 115BAA (22% concessional) or 115BAB (15% for new manufacturing) is more beneficial for the company.
Audited Financials Review & MAT Computation
For companies, we review audited financials and prepare the book profit reconciliation for MAT under Section 115JB — adjusting net profit for all prescribed additions and deductions. We identify MAT credit available from previous years and ensure it is correctly utilised and reported.
Tax Audit Coordination (Form 3CA/3CD)
We coordinate with the statutory auditor to obtain and review the tax audit report, prepare Form 3CA/3CD schedules covering GST reconciliation, TDS compliance (Clause 34), MSME payments (43B(h)), related party transactions (40A(2)(b)), and all 44 clauses — ensuring upload before 30th September.
Trust Income Application Review (ITR-7)
For trusts, we verify that at least 85% of income has been applied for charitable purposes, identify any accumulation requirements, prepare Form 9A (deemed application) or Form 10 (specific purpose accumulation) if needed, and verify Form 10B/10BB audit report compliance.
Complete ITR Preparation & Quality Review
Full ITR-6 or ITR-7 preparation covering all schedules — loss carry-forward, brought-forward depreciation, advance tax reconciliation, audit report linkage, partner/director details, and MAT credit tracking. Internal quality review to prevent defective return notices from the Department.
DSC-Based e-Filing & Post-Filing Compliance
Companies file ITR-6 using the MD/CEO's DSC. Trusts file ITR-7 using trustee's DSC or EVC. Post-filing, we track 143(1) intimations, assist with rectification, monitor MAT credit utilisation, and proactively prepare for the next year's advance tax schedule and compliance calendar.
Estimate Your Company / Trust ITR Filing Fee
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Trusted by Companies & Trusts Across India
"Taxvio handled our ITR-6 with tax audit seamlessly. MAT computation was accurate and the return was filed well before the October deadline. No notices."
Rajshree Enterprises Pvt. Ltd.
Khatauli
"Our 12A trust ITR-7 was filed on time with correct income application workings. Taxvio also helped renew our 80G approval without any issues."
Shri Ram Charitable Trust
Muzaffarnagar
"We switched to the 115BAA concessional tax regime with Taxvio's guidance — saving significant tax. The ITR-6 filing was error-free and on time."
Innovate Tech Solutions Pvt. Ltd.
Meerut
Company & Trust ITR Filing Services Across India
Taxvio is based in Khatauli, Muzaffarnagar, UP and provides ITR-6 and ITR-7 filing for companies and trusts across Noida, Delhi NCR, Meerut, Ghaziabad, and Mumbai — as well as pan-India online. Our CA team has handled company ITRs across trading, manufacturing, real estate, and technology sectors, and trust ITRs for educational, religious, and social welfare organisations across Western UP.
Frequently Asked Questions — ITR Filing for Companies & Trusts
Which ITR form should a private limited company file?+
Which ITR form should a trust or NGO file?+
What is the income tax rate for a private limited company in FY 2025-26?+
What is MAT and when does it apply to companies?+
What happens if a trust does not apply 85% of income for charitable purposes?+
What is the ITR due date for companies and trusts for FY 2025-26?+
File Before 31st October 2026
File Your Company / Trust ITR
Before the Deadline
Avoid penalties, protect MAT credit, maintain 12A/80G registration, and stay 100% compliant. Taxvio's CA-assisted ITR-6 & ITR-7 filing starts at ₹2,999. Serving Khatauli, Muzaffarnagar, Meerut and all of India online.