ITR-5
ITR 5: A Complete Guide
In this post, we will discuss the ITR-5 Form, its purpose, eligibility criteria, structure, key changes for AY 2024-25, and the filing process. Whether you’re a firm, LLP, or another eligible entity, this post will help you learn the fundamentals of submitting your income tax return accurately and on time.
Let us look at these sections:
What is ITR-5 Form?
This income tax return is an Income tax return filing form for a certain category of taxpayers with income from various sources as defined in the Income Tax Act. This form is applicable for Other than Individuals/HUF and Other than Companies.
Who is Eligible to File the ITR-5 Form?
The following individuals can utilize this form:
- Firms
- Limited Liability Partnerships (LLPs)
- Associations of Persons (AOPs)
- Bodies of Individuals (BOIs)
- Artificial Juridical Persons (AJPs) as per Section 2(31)(vii)
- Local Authorities under 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 state law
- Trusts (excluding those eligible to file Form ITR-7)
- Estates of deceased or insolvent persons
- Business Trusts under Section 139(4E)
- Investment Funds under Section 139(4F)
Note: This form cannot be used by individuals who are required to file returns under Sections 139(4A), 139(4B), or 139(4D).
Structure of the ITR-5 Form
The form consists of two parts and has several schedules, listed below:
Part A:
- General Information: Basic details about the taxpayer
- 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 and L: Profit and Loss Account for the financial year 2023-24
- Part A-OI: Other Information
- Part A-QD: Quantitative Details
Part B:
Details of calculation and tax payments
Schedules (40 in Total):
There are a total of 40 schedules that address different areas of income, deductions, and tax calculations:
- Schedule-HP: Calculates income from house property, including rental income, municipal taxes, and housing loan interest deductions.
- Schedule-BP: Calculates income from a business or profession, accounting for earnings, allowed expenses, and depreciation.
- Schedule-DPM: Determines depreciation on plant and machinery as per prescribed rates and methods.
- Schedule-DOA: Depreciation on other fixed assets is covered, but plant and machinery are not.
- Schedule-DEP: Depreciation information is combined from Schedules DPM and DOA.
- Schedule-DCG: Calculates considered capital gains from the sale of depreciable assets.
- Schedule-ESR: Section 35 covers deductions for scientific research expenses.
- Schedule-CG: Calculates capital gains, both short-term and long-term.
- Schedule-112A: Section 112A addresses the taxation of gains on equity shares or units.
- Schedule-VDA: Reports income from the transfer of virtual digital assets such as cryptocurrency.
- Schedule-OS: Covers income from other sources, such as interest, non-house property rents, and so on.
- Schedule-CYLA: Adjusts current-year losses against income.
- Schedule-BFLA: Offsets unabsorbed losses from previous years with present income.
- Schedule-CFL: Details losses are carried over to future years.
- Schedule-UD: Lists the unabsorbed depreciation that will be carried forward.
- Schedule-ICDS: Explains the impact of Income Computation and Disclosure Standards (ICDS) on profits.
- Schedule-10AA: Calculates the deductions for SEZ units under Section 10AA.
- Schedule-80G:Details about donations that are eligible for tax deductions.
- Schedule-80GGA: Includes deductions for donations to scientific research or rural development.
- Schedule-80GGC: Lists contributions to political parties that are deductible.
- Schedule-80IAC: Section 80IAC describes the deductions available to qualifying startup businesses.
- Schedule-80LA: Section 80LA covers deductions for offshore banking units or IFSCs.
- Schedule-RA: Donations to research associations are eligible for deductions.
- Schedule-80IA: Calculates deductions for infrastructure projects under section 80IA.
- Schedule-80IB: Section 80IB addresses deductions for industrial undertakings.
- Schedule-80IC/80-IE: Deductions for specific industrial activities are included.
- Schedule-80P: Lists the deductions allowed to cooperative societies under Section 80P.
- Schedule-VIA: Summarizes deductions under Chapter VIA (for example, sections 80C, 80D, and so on).
- Schedule-AMT: Calculates the Alternate Minimum Tax (AMT) due under section 115JC.
- Schedule-AMTC: Details on the tax credit provided under Section 115JD for AMT paid.
- Schedule-SI: Income taxed at special rates is listed here.
- Schedule-IF: Provides information on partnership income if the taxpayer is a partner.
- Schedule-EI: It lists exempt income that is not included in total income.
- Schedule-PTI: Reports pass-through income from business trusts or investment funds.
- Schedule-TPSA: Covers secondary changes in transfer pricing.
- Schedule-115TD: Calculates accreted income under section 115TD.
- Schedule-FSI: Reports income from foreign sources and claimed tax relief.
- Schedule-TR: Summarizes foreign tax relief claimed.
- Schedule-FA: Includes details of foreign assets and income from abroad.
- Schedule-GST: Reports turnover or receipts for GST purposes.
Part B (Income and Tax Computation):
- Part B-TI: Total Income Computation
- Part B-TTI: Tax Liability Computation
Tax Payments:
- Details of Advance Tax and Self-Assessment Tax Paid
- Tax Deducted at Source (Forms 16A, 16B, 16C)
- Tax Collected at Source
Recommended Filing Sequence:
- Fill Part A
- Complete the Schedules
- Proceed to Part B
- Conclude with Verification
How to File ITR-5 Form
You can file this return online using the Income Tax Department’s e-Filing portal using one of the following methods:
- Submit the return electronically with a digital signature/EVC.
- Submit the return electronically, followed by offline submission of the signed ITR-V form for verification.
For offline submissions:
- Print two copies of the ITR-V form.
- Sign one copy and mail it via ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru – 560500, Karnataka.
- Keep a second copy for your records.
Note: Firms that require an audit under Section 44AB must submit their returns online with a digital signature.
Due Date for Filing ITR-5 Form
- No audit required: Due by July 31st of the assessment year.
- Accounts audited under the Income-Tax Act: Due by October 31st of each assessment year.
- Report in Form 3CEB: Due by 30th November of the assessment year.
E-filing of Audit Reports
Suppose an assessee needs to file an audit report under sections 10(23C)(iv)-(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA to 80-ID, 80JJAA, 80LA, 92E, 115JB, or 115VW. In that case, the report must be filed electronically before the income tax return due date.
Who Cannot File the ITR-5 Form?
- Individuals
- Hindu Undivided Families (HUF)
- Companies
- Taxpayers filing ITR-7 under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F).
Key Changes in the ITR-5 Form in AY 2024-25
- Provide the acknowledgement number in Audit Report and UDIN.
- The overdue amount payable to MSMEs after the deadline needs to be specified.
- Sharing accurate information about how to use the Capital Gains Accounts Scheme.
- Need to include political party contributions in Schedule 80GGC.
- Declaration of incentive payments under LIC policies, as well as dividends from IFSC units in Schedule OS.
- For startups under Section 80-IAC, provide the date of incorporation, type of business, Inter-Ministerial Board certificate number, the first assessment year for claiming deductions, and amount claimed in the current assessment year.
- MSME information, such as registration status and number, must be provided.
Verification of Documents
- You need to complete the verification document with the required details.
- Strike out sections that don’t apply to you.
- Sign the document before submitting the return.
- Note that providing incorrect information in the return or its schedules may result in prosecution under Section 277 of the Income Tax Act of 1961, with penalties including jail and fines.
We have reached the end of this post. Please leave your questions in the comment area below.
FAQs
1. What happens if I fail to file my ITR-5 by the deadline and my accounts need to be audited?
Ans: According to the Income-tax Act, failing to file ITR-5 before the audit deadline may result in fines and penalties.
2. Is it necessary to submit the balance sheet in an ITR-5 filing?
Ans: If the accounts were audited, the balance sheet figures must match the audited balance sheet. Activities that are not accounted for in the books should be excluded.
3. What is the penalty for late filing of ITR-5?
Ans: If the ITR-5 is not filed by the due date, a penalty under Section 234F will apply. The penalty amount is determined by the entity’s total income and the timing of filing.
