I can answer this question: Does a dormant company need to file a tax return? In India, even if a company is classified as “dormant” under Section 455 of the Companies Act, it must still file an income tax return each year, regardless of whether it has earned any income or conducted business activities. A dormant company is one that hasn’t engaged in significant transactions for two consecutive financial years.
Do Dormant Companies Need to File Tax Returns?
While this status reduces several compliance burdens like exemptions from auditor rotation, certain ROC filings (AOC-4, MGT-7), and streamlined annual ROC filing via Form MSC-3 within 30 days of the financial year-end it does not absolve the entity from tax return obligations.
Additionally, dormant companies must continue to:
Maintain statutory books and records,
Conduct at least one board meeting every six months,
Appoint the minimum required number of directors based on company type,
Undergo a statutory audit of financial statements (though auditor rotation isn’t mandatory).
Income Tax compliance follows the same timeline as active companies. Even in the absence of income, dormant companies must file ITR usually Form ITR-6 by the due date (usually September 30). Failure to do so can lead to penalties under Section 234F and attract notices from tax authorities.
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Does A Dormant Company Need To File A Tax Return?
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2025-06-19T15:56:00+00:00 2025-06-19T15:56:01+00:00Comment
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