A Nidhi Company must file ITR-6 every financial year as it is incorporated as a Public Limited Company under the Companies Act, 2013. The applicable income tax rate is 25% (if turnover <= ₹400 crore) or 30%, plus surcharge and cess. The due date for Nidhi Companies (subject to tax audit) is 31 October of the assessment year. Non-compliance attracts penalties up to ₹10,000 under the Direct Tax Code 2025. Taxocity provides end-to-end ITR filing support for Nidhi Companies backed by 3+ decades of compliance expertise and a 100% compliance guarantee.

• Applicable return form: ITR-6
• Tax audit threshold: Turnover exceeding ₹1 crore (₹10 crore if cash transactions <= 5%)
• Due date (audit cases): 31 October of the assessment year

What is a Nidhi Company?

A Nidhi Company is a type of Non-Banking Financial Company (NBFC) recognised under Section 406 of the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA). Its core purpose is to cultivate the habit of thrift and savings among its members, and to lend money exclusively to its members. It is structured as a Public Limited Company, which directly determines how income tax compliance works.

Because a Nidhi Company is legally treated as a company (not a partnership or proprietorship), all provisions of the Direct Tax Code 2025 applicable to domestic companies apply to it. This means separate tax slabs, mandatory audit requirements, and specific ITR forms.

Which ITR Form Does a Nidhi Company Use?

A Nidhi Company must file ITR-6 — the form prescribed for all companies other than those claiming exemption under Section 11 (charitable/religious trusts). Since Nidhi Companies earn income from interest on loans given to members and from investments, ITR-6 is the only applicable form.

Business Structure	Applicable ITR Form
Nidhi Company (Public Ltd)	ITR-6
Private Limited Company	ITR-6
Section 8 Company	ITR-7
LLP	ITR-5
Sole Proprietorship	ITR-3 / ITR-4

What is the Income Tax Rate for a Nidhi Company?

As of AY 2026-27, the income tax rate for a Nidhi Company under the Direct Tax Code 2025 is as follows:

Condition	Tax Rate
Turnover up to ₹400 crore (previous year)	25%
Turnover exceeding ₹400 crore	30%
Concessional rate (Section 115BAA)	22% (no exemptions/deductions)

On top of the base rate, a surcharge applies if net income exceeds ₹1 crore (7%) or ₹10 crore (12%). A Health and Education Cess of 4% is levied on the total tax including surcharge.

Most Nidhi Companies with a smaller turnover and standard deductions benefit from the 25% rate. Companies opting for Section 115BAA give up most deductions but pay a flat 22%, which can be beneficial at scale.

What are the Due Dates for Nidhi Company ITR Filing?

The due date for filing income tax returns for a Nidhi Company depends on whether a tax audit under the Direct Tax Code 2025 is applicable.

Case	Due Date (AY 2026-27)
Tax audit applicable (turnover > ₹1 crore or ₹10 crore in cash-heavy transactions)	31 October 2026
No tax audit required	31 July 2026
Transfer Pricing report applicable	30 November 2026

Important: Nidhi Companies that are newly registered and have not yet crossed audit thresholds must still file ITR-6 by 31 July. It is advisable to get audit-readiness assessed early in the financial year.

When is Tax Audit Mandatory for a Nidhi Company?

A tax audit under the Direct Tax Code 2025 is mandatory for a Nidhi Company if its total turnover or gross receipts exceed ₹1 crore in the relevant financial year. However, if cash receipts and cash payments are each not more than 5% of total receipts/payments, the threshold is raised to ₹10 crore.

Since Nidhi Companies deal heavily in cash deposits and loan disbursements among members, most active Nidhi Companies will exceed the ₹1 crore threshold and require a mandatory tax audit. The audit must be conducted by a Chartered Accountant and the audit report must be submitted before the ITR is filed.

What Income Does a Nidhi Company Report?

A Nidhi Company typically earns income under two primary heads for the purpose of income tax filing:

• Profits and Gains from Business or Profession: Interest earned on loans given to members, processing fees, and service charges.
• Income from Other Sources: Interest on fixed deposits with banks, dividends, and other miscellaneous receipts.

The net taxable income is arrived at after deducting allowable business expenses such as interest paid to depositing members, employee salaries, rent, depreciation on assets, and administrative costs. Proper maintenance of books of accounts (mandatory under the Companies Act, 2013) is critical to claiming all legitimate deductions.

What are TDS Obligations for Nidhi Companies?

As a company, a Nidhi Company is also a Tax Deductor and must comply with TDS provisions under the Direct Tax Code 2025. Key TDS obligations include:

Payment Type	TDS Rate (Individual)	TDS Rate (Other than Individual)
Interest paid to members (exceeding ₹5,000)	10%	10%
Salary payments to employees	As per slab rates	N/A
Professional/technical fees (exceeding ₹30,000)	10%	10%
Rent of property (exceeding ₹2.4 lakh/year)	10%	10%

TDS deducted must be deposited by the 7th of the following month (or 30 April for March deductions). Quarterly TDS returns (Form 24Q, 26Q) must be filed within the prescribed timelines. Failure to deduct or deposit TDS attracts interest and penalties.

Annual Compliance Checklist for a Nidhi Company

Income tax filing is one component of a broader annual compliance framework for Nidhi Companies. Here is a consolidated checklist for FY 2025-26 (AY 2026-27):

• Maintain proper books of accounts (mandatory)
• Conduct Statutory Audit by a Chartered Accountant
• File Form NDH-1 (Return of Statutory Compliances) with MCA by 30 April
• File Form NDH-3 (Half-yearly Return) with MCA by 30 April and 31 October
• File Form MGT-7 (Annual Return) with MCA within 60 days of AGM
• File Form AOC-4 (Financial Statements) with MCA within 30 days of AGM
• File Tax Audit Report (if applicable) before 31 October 2026
• File ITR-6 by 31 October 2026 (audit cases) or 31 July 2026
• File quarterly TDS returns (Form 26Q, 24Q)
• File GST returns (if registered under GST)

Non-compliance with MCA filings can lead to striking off of the company, while income tax non-compliance attracts interest under relevant provisions of the Direct Tax Code 2025 plus a late filing fee of ₹5,000 (or ₹1,000 if turnover is below ₹5 lakh).

How to File ITR for a Nidhi Company (2026)

Filing ITR-6 for a Nidhi Company involves several structured steps. Here is the step-by-step process for AY 2026-27:

1. Close the books of accounts for FY 2025-26 and prepare financial statements (Balance Sheet, P&L, Cash Flow).
2. Get Statutory Audit done by a qualified Chartered Accountant as mandated under the Companies Act, 2013.
3. Get Tax Audit done (if turnover exceeds ₹1 crore) and obtain Form 3CA/3CB-3CD from the auditor.
4. Compute taxable income after all allowable deductions, depreciation, and set-off of losses (if any).
5. Log in to the Income Tax Portal (incometax.gov.in) using the company's credentials.
6. Select ITR-6, fill in all schedules (Balance Sheet, P&L, Tax Computation, TDS details, GST turnover reconciliation).
7. Verify and submit the ITR using a Digital Signature Certificate (DSC) of an authorised director. DSC is mandatory for companies — a physical signature is not accepted.
8. Pay any outstanding tax liability (self-assessment tax) before filing.

The entire process — from closing books to filing ITR — requires close coordination between accounts, audit, and compliance teams. This is where expert support from Taxocity becomes invaluable.

Why Choose Taxocity for Nidhi Company ITR?

With over 3 decades of experience in business compliance and a 4.8/5 rating from 5,000+ clients, Taxocity offers end-to-end ITR filing support for Nidhi Companies. Our services cover everything from books finalisation and tax audit coordination to ITR-6 preparation, DSC filing, and post-filing support.

• 100% Compliance Guarantee: We ensure your filing is accurate, complete, and submitted on time.
• Real Human Experts: No bots. You work directly with qualified Chartered Accountants and compliance specialists.
• End-to-End Support: From Nidhi Company registration to annual filings, we handle every stage.
• Integrated Compliance: We also manage your GST filings and Annual Performance Reports under one roof.

Whether you are a newly registered Nidhi Company filing your first ITR or an established one managing a growing member base, our team ensures you stay compliant without the stress.

Frequently Asked Questions

Is ITR filing mandatory for a Nidhi Company even if there is no profit?

Yes. ITR-6 filing is mandatory for every Nidhi Company regardless of whether it earned any profit or incurred a loss during the financial year. Filing a nil or loss return is compulsory to remain compliant and to carry forward losses to future years.

Can a Nidhi Company claim deductions under the Direct Tax Code 2025?

Yes. A Nidhi Company can claim standard business deductions such as depreciation, employee costs, interest paid to members, administrative expenses, and statutory audit fees, provided these are incurred wholly and exclusively for business purposes and are properly documented.

Does a Nidhi Company need to pay advance tax?

Yes. If the estimated tax liability for the year exceeds ₹10,000, a Nidhi Company must pay advance tax in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. Non-payment attracts interest at 1% per month under the Direct Tax Code 2025.

Does a Nidhi Company need to register for GST?

A Nidhi Company's core activities (accepting deposits and lending to members) are generally exempt from GST. However, if the Nidhi Company provides other taxable services and its aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category states), it must register for GST.

What is the penalty for late ITR filing for a Nidhi Company?

Late filing attracts a fee of ₹5,000 under the Direct Tax Code 2025 (₹1,000 if total income does not exceed ₹5 lakh). Additionally, interest at 1% per month is charged on any outstanding tax liability from the due date until the date of filing.

Disclaimer

This article is intended for general informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and compliance requirements are subject to change. Please consult a qualified Chartered Accountant or tax advisor before making any decisions regarding your Nidhi Company's income tax compliance. Taxocity's experts are available to provide personalised guidance for your specific situation.