ITR-5 Form in : Overview, Structure, and Filing Guide

Introduction

Income Tax Return (ITR) forms are essential for individuals, businesses, and organizations to report their income, expenses, and taxes to the Income Tax Department of India. Among the various ITR forms available, ITR-5 is specifically designed for certain types of entities such as partnerships, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), and others. This form is used by taxpayers who fall under these categories to file their returns. In this article, we’ll dive deeper into what ITR-5 form is, its structure, and how to file ITR 5 form in .

What is ITR-5 form?

ITR-5 is an income tax return form for taxpayers who are not individuals, Hindu Undivided Families (HUF), or companies. It is intended for firms, limited liability partnerships (LLPs), association of persons (AOPs), body of individuals (BOIs), cooperative societies, and other similar entities that are required to file an income tax return under Indian tax law. The ITR-5 form helps these entities report their income, deductions, and taxes paid during the financial year.

Who Can File the ITR-5 Form in ?

The ITR-5 form can be used by the following entities in :

• Firms
• Limited Liability Partnerships (LLPs)
• Associations of Persons (AOPs)
• Bodies of Individuals (BOIs)
• Artificial Juridical Persons (AJPs) as defined in Section 2(31)(vii)
• Local Authorities as mentioned in Section 2(31)(vi)
• Representative Assessees under Section 160(1)(iii) or (iv)
• Cooperative Societies
• Societies registered under the Societies Registration Act, 1860, or any other applicable state law
• Trusts (except those eligible to file ITR-7)
• Estate of a deceased person
• Estate of an insolvent
• Business Trusts as referred to in Section 139(4E)
• Investment Funds as outlined in Section 139(4F)

However, individuals or entities required to file returns under sections 139(4A), 139(4B), or 139(4D) cannot use this form.

Who is Not Eligible to File the ITR-5 Form in ?

In order to file ITR 5 Form in , there is a certain eligibility criteria which individuals need to keep in their mind. Following is the list who cannot file the ITR-5 form:

1. Any Individual assessees is not eligible to file ITR 5 Form
2. Any Hindu Undivided Families (HUFs) can not file ITR 5 form
3. Companies are not eligible to file this form
4. Taxpayers required to file returns under Form ITR-7, or under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F)

Important Updates in the ITR-5 Form for AY 2024-25

1. The form now requires the acknowledgement number for the Audit Report and the UDIN (Unique Document Identification Number).
2. It asks for details of payments made to MSMEs beyond the specified time limit.
3. Comprehensive information is required regarding the utilization of the Capital Gains Accounts Scheme.
4. Under Schedule 80GGC, detailed information on contributions to political parties is now required.
5. Schedule OS now includes declarations for bonus payments under LIC policies and details of dividend receipts from IFSC units.
6. For startups claiming deductions under Section 80-IAC, the form asks for the date of incorporation, nature of business, certificate number from the Inter-Ministerial Board, the first assessment year when the deduction was claimed, and the amount of deduction claimed for the current assessment year.
7. MSME-related details, including registration status and MSME registration number, are now required.

How is ITR-5 structured?

The ITR-5 Form is structured into two main parts and several detailed schedules:

Part A: General Information

• Part A-BS: Balance Sheet as of 31st March 2024
• Part A-Manufacturing Account: For the financial year 2023-24
• Part A-Trading Account: For the financial year 2023-24
• Part A-P&L: Profit and Loss Account for the financial year 2023-24
• Part A-OI: Other Information
• Part A-QD: Quantitative Details

Part B

There are 40 schedules, including the following:

• Schedule-HP: Income from House Property
• Schedule-BP: Income from Business or Profession
• Schedule-DPM: Depreciation on Plant and Machinery
• Schedule-DOA: Depreciation on Other Assets
• Schedule-DEP: Summary of Depreciation on all Assets
• Schedule-DCG: Deemed Capital Gains on Sale of Depreciable Assets
• Schedule-ESR: Deduction under Section 35 (Scientific Research Expenditure)
• Schedule-CG: Capital Gains
• Schedule 112A: Sale of Equity Shares or Equity-Oriented Fund Units (STT Paid)
• Schedule-VDA: Income from Virtual Digital Assets
• Schedule-OS: Income from Other Sources
• Schedule-CYLA: Income After Set-Off of Current Year’s Losses
• Schedule-BFLA: Income After Set-Off of Unabsorbed Losses Brought Forward
• Schedule-CFL: Losses to be Carried Forward
• Schedule-UD: Unabsorbed Depreciation
• Schedule-ICDS: Income Computation Disclosure Standards
• Schedule-10AA: Deduction under Section 10AA
• Schedule-80G: Donation Entitled for Deduction under Section 80G
• Schedule-80GGA: Donations for Scientific Research or Rural Development
• Schedule-80GGC: Contributions to Political Parties
• Schedule-80 IAC: Deduction for Eligible Startups under Section 80-IAC
• Schedule-80LA: Deduction for Offshore Banking Units or IFSC under Section 80LA
• Schedule-RA: Donations to Research Associations
• Schedule-80 IA: Deduction under Section 80IA
• Schedule-80IB: Deduction under Section 80IB
• Schedule-80IC/80-IE: Deduction under Sections 80IC/80-IE
• Schedule-80P: Deductions under Section 80P
• Schedule-VIA: Deductions under Chapter VIA
• Schedule-AMT: Computation of Alternate Minimum Tax (AMT) under Section 115JC
• Schedule-AMTC: Tax Credit under Section 115JD
• Schedule-SI: Income Chargeable to Tax at Special Rates
• Schedule-IF: Information about Partnership Firms
• Schedule-EI: Exempt Incomes
• Schedule-PTI: Pass-Through Income from Business Trust or Investment Fund
• Schedule-TPSA: Secondary Adjustment to Transfer Pricing
• Schedule-115TD: Accreted Income under Section 115TD
• Schedule-FSI: Income from Outside India and Tax Relief
• Schedule-TR: Summary of Tax Relief Claimed for Taxes Paid Outside India
• Schedule-FA: Foreign Assets and Income from Foreign Sources
• Schedule-GST: Information on GST Reported Turnover/Gross Receipts

Part B

• TI: Computation of Total Income
• TTI: Computation of Tax Liability on Total Income

Tax Payments:

• Advance Tax and Self-Assessment Tax Payments
• TDS on Income Other Than Salary (16A, 16B, 16C)
• Tax Collected at Source

Sequence for Filing

The Income Tax Department recommends filling out the form in the following order:

• Part A
• Schedules
• Part B
• Verification

How to File ITR-5 Form in ?

Filing ITR-5 involves several steps, and it can be done online via the Income Tax Department’s e-filing portal. Here's a step-by-step guide:

Step 1: Log in to the Income Tax E-Filing Portal

• Visit the official Income Tax e-filing portal.
• Log in using your PAN and password. If you don’t have an account, you need to register first.

Step 2: Select ITR-5 Form

• Once logged in, go to the "e-File" menu and choose "Income Tax Return".
• Select the assessment year for which you are filing the return.
• Choose the appropriate ITR form, in this case, ITR-5.

Step 3: Fill in the Details

• Carefully fill in all the required details in the form.
• Ensure that all income, deductions, and tax liabilities are accurately mentioned.
• You can use the provided schedules to detail specific sources of income, deductions, etc.

Step 4: Attach Supporting Documents (if applicable)

While filing online, you may need to upload supporting documents such as:

• Profit and loss account and balance sheet (for business entities)
• Audit report (if applicable)
• Income statements or any other relevant documentation

Step 5: Review and Submit

Once you’ve filled in all the necessary details, review the form carefully. Verify the accuracy of all information entered.

• After reviewing, submit the form.
• If applicable, generate an XML file for uploading.

Step 6: Sign and Submit

• After submission, you will be prompted to sign the form digitally or by using an EVC (Electronic Verification Code).
• If you are unable to sign digitally, you can opt for alternative options such as sending a physical signed copy to the Income Tax Department.

Step 7: Acknowledgment

Once the form is successfully submitted, you will receive an acknowledgment receipt. Keep this for your records as proof of filing the return.

Deadline for Filing the ITR-5 Form

The due dates for filing the ITR-5 form are as follows:

1. When accounts are required to be audited under the Income Tax Act: 31st October of the assessment year
2. When the report in Form No. 3CEB is to be submitted: 30th November of the assessment year
3. In cases where accounts do not need to be audited: 31st July of the assessment year

E-filing of Audit Reports

If an assessee is required to submit an audit report under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB, or 115VW, they must electronically file the report on or before the due date for filing the income tax return.

Key Points to Remember

1. Eligibility:

Only firms, LLPs, AOPs, BOIs, co-operative societies, and certain other entities need to file ITR-5. Individuals and companies should use other relevant forms.

2. Tax Audit:

If the entity's annual turnover exceeds the threshold limit set by the Income Tax Act, a tax audit may be required.

3. Penalty for Non-Compliance:

Failing to file the return on time may attract penalties and interest, as per the provisions under the Income Tax Act.

Why Bizfoc?

Bizfoc is one of the leading brands along with a professional and experienced team in the field of ITR filing. We provide a seamless process for ITR filing to our clients. We make sure to file everything accurately and in a minimal time period. We guide you at each and every step related to your filings and new ITR updates.

Conclusion

Filing ITR-5 is a crucial responsibility for entities like partnership firms, LLPs, AOPs, and others to ensure compliance with Indian tax laws. The process of filing may seem complex, but it is straightforward with proper knowledge and documentation. By following the steps and ensuring accuracy, these entities can file their tax returns efficiently and avoid penalties. It’s always advisable to consult a tax professional if you're unsure about any specific details or requirements in the form.

Frequently Asked Questions