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All about ITR 5 for Income Tax Return Filing
The ITR-5 is used in India for Income Tax Return filing by firms, limited liability partnerships (LLPs), associations of persons (AOPs), and bodies of individuals (BOIs), among other entities. Taxpayers using the ITR-5 form are typically involved in business activities and are not eligible for the presumptive taxation scheme. The form requires disclosure of income from various sources, including business or profession, capital gains, house property, and other sources, each with specific schedules for reporting details. Additionally, the ITR-5 form mandates providing details of partners, capital accounts of partners, and profit-sharing ratios for LLPs. Taxpayers and professionals entrusted with the responsibility of filing ITR-5 must stay updated with the latest tax regulations and guidelines provided by the Income Tax Department to ensure compliance and fulfill their tax obligations. For further understanding, you can consult with CA for filing Income Tax Return.
Who is eligible for ITR 5 Filing?
The form ITR 5 can be filed by the following sections of taxpayers:
- Local Authorities
- LLP i.e. Limited Liability Partnership
- AOP i.e. Association of Persons
- BOI i.e. Body of Individuals
- Artificial Judicial Person as per the section 2(31)(vii) of Income Tax Act
- Estate of Deceased
- Estate of insolvent
- Business Trust and Investment Fund
- Cooperative Society
- Persons defined in section 160(1)(iii)(iv) of Income Tax Act
Who is not eligible for ITR 5 Filing?
Certain entities and individuals are not eligible to file the ITR-5 form. Here are the taxpayers who cannot file the ITR-5 form:
Individuals (except as partners in firms or LLPs)
Individual taxpayers who are not partners in a firm or LLP should use the relevant ITR form based on their sources of income. We can’t use ITR 5 for ITR Filing for Salaried Employees.
Companies, including private limited companies and public limited companies, have their specific forms for filing income tax returns. Companies typically use ITR-6 for this purpose.
Partnership Firms and LLPs under the Presumptive Taxation Scheme
If a partnership firm or LLP falls under the presumptive taxation scheme, they should use the ITR-4 form instead of ITR-5.
HUF i.e. Hindu Undivided Families must use the other relevant ITR forms based on their sources of income.
Taxpayers using ITR 7 form
Individuals & entities who have been fall under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) can’t file ITR 5, instead, they are required to file ITR 7. These sections include charitable trusts & societies, political parties, educational institutions, etc.
Entities not falling under the Definition of Firms, LLPs, AOPs, or BOIs
ITR-5 is meant for specific categories of entities, and if an entity doesn’t fall under any of these categories, it may need to use a different form or seek guidance from ITR Filing Agents near me.
It’s crucial for taxpayers to correctly identify the most appropriate ITR form for Income Tax Return filing based on their entity type and sources of income. Using the wrong form can lead to filing errors and potential issues with tax authorities. If you are unsure about which ITR form to use, it is advisable to consult the Income Tax Return filing Agents near me or seek guidance from the Income Tax Department to ensure compliance with tax regulations.
Income Tax Return last date for ITR 5 Filing
- If accounts are to be audited under the Income-Tax Act then, October 31 of the assessment year
- If the report in Form No. 3CEB is to be furnished then, November 30 of the assessment year
- In the other case (if there is no need to audit the accounts), July 31 of the assessment year
What is the structure of the ITR-5 Form?
The ITR-5 form in India is structured to accommodate the reporting requirements of firms, limited liability partnerships (LLPs), associations of persons (AOPs), bodies of individuals (BOIs), and other entities that are not eligible for the presumptive taxation scheme. The form consists of several parts and schedules to capture comprehensive financial information. Here is the typical structure of the ITR-5 form:
Part A: General Information:
This section includes basic details about the taxpayer, including name, PAN (Permanent Account Number), address, contact information, and the assessment year for which the return is being filed.
Part A-BS: Balance sheet:
Here, taxpayer has to report their financial position using a balance sheet of 31st March of the specified AY.
Part A: Manufacturing Account:
It includes details of the manufacturing account for financial year 2023-24.
Part A: Trading Account:
It consists of the information of trading accounts for FY 2023-24.
Part A- P&L: Profit & Loss Account:
Here, you have to report about the Profit & Loss Account for FY 2023-24.
Part A- OI: Other Information:
It includes the other financial information of the taxpayer’s income
Part A- QD: Quantitative Details:
Here, you have to provide the quantitative details of the various aspects of income.
Several schedules may be attached to the ITR-5 form, depending on the entity’s specific circumstances. These schedules cover various aspects, such as depreciation, partner’s information (for LLPs), and foreign assets and income. There are total 31 schedules.
Part B-TI: Total Income Computation:
In this section, you provide details of your income from various sources. This includes:
- Income from Salary or Pension
- Income from House Property
- Income from Capital Gains
- Income from Other Sources
Part B-TTI : Computation of Tax Liability:
This section helps you calculate your tax liability based on the taxable income computed in Part C. It includes details of your tax computation, such as income tax, surcharge, and any relief claimed.
This section includes the following details-
- Details of the payment of the advance tax & self- assessment tax.
- Details of TDS on income other that the salary (16A, 16B, 16C)
- Details of TCS
This part includes details related to tax payments, advance tax, self-assessment tax, and tax deducted at source (TDS) during the financial year.
The entity or its authorized signatory must sign and verify the ITR-5 form, declaring the accuracy of the information provided.
Entities filing ITR-5 should ensure that they carefully fill out each section of the form, providing accurate and complete information to comply with the Income Tax Act. Additionally, it’s essential to refer to the latest version of the ITR-5 form and any accompanying instructions provided by the Income Tax Department to stay updated with tax regulations and requirements. To understand the structure of ITR 5 easily in detail you can search for the ‘Income Tax Return filing near me’.
How to file ITR 5
Filing your ITR-5 form in India involves several steps, and you can choose to file it online or offline, depending on your preference and eligibility. Here’s a general overview of how to file your ITR-5:
Online Filing (E-Filing):
Step 1: Official website of e-filing
Firstly, you have to visit the official website for e-filing of income tax return which is https://www.incometax.gov.in/iec/foportal/
Step 2: Register/ Login
If you are a first-time user you have to register yourself
If you are a repeat user you have to log in to the website-
- You have to enter your PAN as your user id and then click ‘Continue’.
- You have to check the security message given in the tick box.
- Then, you have to enter your password & click on the ‘Continue’ button.
Step 3: Selecting the option of ‘File Income Tax Returns’
After logging in, you will see the e-file menu on the menu bar. When you click on the e-file menu then, you will get the option of ‘Income Tax Returns’ on clicking you will see the option of ‘File Income Tax Return’ and you have to click on that option.
Step 4: Select the assessment year
You will be redirected to the page of Income Tax return where you have to select the ‘assessment year’ and the ‘mode of filing’ for which you wish to file the income tax return and then you have to click on ‘Continue’
Step 5: Select the status
Then, you have to select the status of filing ITR among Individual, HUF, or others and click on ‘Continue’
Step 6: Select the ITR type
After that, you have to select the type of ITR form where you have to choose the ITR 5
Step 7: Fill in the Online Form:
Then, you have to enter the details from the filled-out ITR 5 form into the online form on the e-filing portal. Double-check for accuracy.
Step 8: Submit bank account details
After that, you have to add your bank details. If already been submitted, then you have to make sure that it has been pre-validated. You have to review the correctness of pre-filled information that has appeared on the new page.
Step 9: Upload Digital Signature:
If you have a digital signature, you can upload it for electronic verification. However, if your account needs to be audited as per section 44AB, then you have to verify your ITR 5 electronically with the help of a digital signature.
Step 10: e-verification of ITR
Then, e-verification of ITR is the most crucial step. Your Income Tax Return will be incomplete until you verify it. You have the option to e-verify the ITR via Aadhaar OTP, Net banking EVC i.e. Electronic Verification Code, or by sending a physical copy of the ITR to CPC Bengaluru.
Step 11: Submission of ITR
At last, you have to click on the ‘Submit’ button to submit your ITR. After submission, you will get the acknowledgment from the Income Tax department.
Offline Filing (Physical Submission):
Obtain a Physical Copy of the ITR-5 Form
Visit the Income Tax Department’s website or a local tax office to obtain a physical copy of the ITR-5 form
Fill Out the Form
Carefully fill out the ITR-5 form, providing all the required information.
Double-check all the details on the form for accuracy and completeness.
Calculate your tax liability based on the income and deductions you have reported.
Attach all the necessary documents, such as financial statements, bank statements, and proof of deductions.
Sign the Form
Sign the physical copy of the ITR-5 form.
Submit the Form
Submit the signed ITR-5 form along with all supporting documents to the nearest Income Tax Office or designated centers.
Whether filing online or offline, it’s crucial to keep a copy of the filed return and any acknowledgment or ITR-V (if applicable) for your future reference. Additionally, always file your income tax return within the specified due date to avoid penalties and interest charges. If you have complex financial situations or need assistance, consider consulting a tax professional or CA near me for ITR Filing guidance during the filing process.
Details Required for ITR-5 Filing
When filing your income tax return (ITR-5) in India, especially for entities such as firms, Limited Liability Partnerships (LLPs), associations of persons (AOPs), bodies of individuals (BOIs), and other non-individual taxpayers, you will need various information to ensure accurate reporting of income and deductions. Here are the details typically required for filing ITR-5:
The details of the Permanent Account Number (PAN) card of the entity are essential for filing income tax returns.
Linking your Aadhaar card with PAN is mandatory for filing income tax returns, so make sure your Aadhaar details are up to date.
Audited Financial Statements
For firms, LLPs, and entities that are required to get their accounts audited, you will need the audited financial statements, including the balance sheet, profit and loss statement, and audit report.
Gather bank statements for all the entity’s bank accounts for the financial year. These statements are essential for verifying income and deductions.
Obtain Form 26AS, which is an annual tax statement showing details of Tax Deducted at Source (TDS) and other tax-related information. You can access Form 26AS online through the Income Tax Department’s website.
- For firms and LLPs, provide details of income earned from various sources, including business, profession, and other sources.
- Specify the nature of income, such as trading income, interest income, rent income, and dividend income.
- Claim deductions under various sections of the Income Tax Act, such as Sections 80C, 80D, 80G, and others.
- Provide details of the deductions claimed.
Advance Tax and Self-Assessment Tax Payments
Include details of advance tax and self-assessment tax payments made during the financial year, including challans and receipts.
Partners’ Information (for firms and LLPs):
- Details of partners, including their PAN, names, addresses, and profit-sharing ratios
- Details of partners’ capital accounts and current accounts
GST information (if applicable):
- Provide Goods and Services Tax (GST) information, including GSTIN (GST Identification Number) and GST-related documents, if the entity is registered under GST.
- Provide Goods and Services Tax (GST) information, including GSTIN (GST Identification Number) and GST-related documents, if the entity is registered under GST.
Bank Account Details
Bank account details of the entity, including account numbers and IFSC codes, for receiving income tax refunds, if applicable.
Authorized Signatory Information
Details of the authorized signatory who will sign and verify the ITR-5 form.
Ensure that you fill these details properly while filing your ITR-5.
Documents required for ITR 5 Filing
- There is no need to submit or affix any extra documents, paperwork, or TDS certificates with the Return form.
- If you affix any document with the Return form, you will get those documents back.
- It is a suggestion for the taxpayers to match the taxes deducted, collected, or paid by them with their Tax Credit Statement Form 26AS.
You should maintain copies of the filed return, acknowledgment, and any other relevant documents for future reference and to comply with tax laws and regulations. If you have complex financial transactions or need assistance, consider consulting a tax professional or chartered accountant for guidance during the filing process.
The ITR-5 form in India is a crucial document used for filing income tax returns by entities such as firms, Limited Liability Partnerships (LLPs), associations of persons (AOPs), bodies of individuals (BOIs), and other non-individual taxpayers. It provides a structured framework for reporting income, deductions, and tax liabilities, ensuring compliance with the Income Tax Act. Entities filing ITR-5 must gather and organize their financial documents, including audited financial statements, bank statements, and proof of income and deductions. Accurate and timely filing of ITR-5 is essential to fulfilling tax obligations and adhering to tax laws. Seeking professional guidance, when needed, can help ensure accurate filing and compliance with tax regulations, allowing entities to effectively manage their tax affairs in India.
If you need guidance for filing an ITR or the correct ITR form, then LegalPillers is here to help you. We provide you the professional guidance so that you can ensure the accurate filing of ITR. Usually, the ITR Filing fees by CA are very high but LegalPillers provide you this service with reasonable fees. Make us your trusted partner for filing ITR.
(FAQs) related to ITR-5 Filing (Income Tax Return-5) in India
What is ITR-5?
- ITR-5 is an income tax return form in India used by entities such as firms, Limited Liability Partnerships (LLPs), associations of persons (AOPs), body of individuals (BOIs), and other non-individual taxpayers to file their income tax returns.
Who can file ITR-5?
- Firms, LLPs, AOPs, BOIs, and other entities not eligible for the presumptive taxation scheme can file ITR-5.
Is Aadhaar linking mandatory for ITR-5 filing?
- Yes, linking Aadhaar with PAN is mandatory for filing income tax returns, including ITR-5.
What is the due date for filing ITR-5?
- The due date for filing ITR-5 varies each year and can be extended by the Income Tax Department. It is typically on or before July 31st of the assessment year.
Can I file ITR-5 electronically?
- Yes, ITR-5 can be filed electronically through the Income Tax Department’s e-filing portal.
What are the key sections of ITR-5?
- ITR-5 includes sections for general information, income details, deductions, computation of tax payable, and other financial disclosures.
What documents are needed for filing ITR-5?
- Documents include PAN card, Aadhaar card, audited financial statements, bank statements, Form 26AS, income and deduction proofs, and relevant financial records.
Can ITR-5 be revised after filing?
- Yes, you can file a revised return using ITR-5 if you discover errors or omissions in your original filing.
What is Form 26AS, and why is it important for ITR-5?
- Form 26AS is an annual tax statement that shows details of TDS and other tax-related information. It is essential for cross-verification while filing ITR-5.
Is GST information required for ITR-5?
- If applicable, GST information may need to be provided, especially for businesses registered under GST.
Can entities with turnover exceeding prescribed limits use ITR-5?
- No, entities with turnover or gross receipts exceeding the prescribed limits for presumptive taxation should explore other suitable ITR forms.
Is a tax audit required for entities filing ITR-5?
- A tax audit may be required for entities with turnovers or gross receipts exceeding specified limits under the Income Tax Act.
What is the penalty for late filing of ITR-5?
- Late filing can attract penalties and interest as per the Income Tax Act. The penalty amount depends on the delay period.
Can ITR-5 be filed offline (physically)?
- ITR-5 can only be filed electronically. Offline filing is not available for this form.
What is the role of an authorized signatory in ITR-5?
- The authorized signatory is responsible for signing and verifying the ITR-5 form on behalf of the entity.
What is the consequence of providing incorrect information in ITR-5?
- Incorrect information can lead to penalties, fines, or legal consequences, so accuracy is crucial.
Is it advisable to seek professional help for filing ITR-5?
- Entities with complex financial transactions or doubts about tax compliance may benefit from consulting a tax professional or chartered accountant.
Can an entity file ITR-5 if it has income from other sources besides business or profession?
- Yes, entities can report income from various sources in ITR-5, but they should provide accurate details in the relevant sections.
Is there a difference between ITR-5 and ITR-6?
- Yes, ITR-5 is for entities other than companies, LLPs, or those not liable for the presumptive taxation scheme. ITR-6 is specific to companies.
Where can I get the latest version of the ITR-5 form and instructions for filing?
- The latest version of the ITR-5 form and filing instructions can be found on the official website of the Income Tax Department of India.