Concept of ITR Form 5

ITR Form 5 is a form filed as income tax return by following entities:

  • Firms
  • Association of persons (AOPs)
  • Body of Individuals (BOIs)
  • Artificial Juridical Person (AJP)
  • Estate of deceased
  • Estate of insolvent
  • Business trust and investment fund
  • LLPs (Limited Liability Partnerships)
  • Cooperative societies
  • Local authority

ITR- 5 Form is not filed by an individual, company, HUFs and those who file an income tax return in new ITR Form 7. Any person who files return of income tax under section 139(4A) or 139(4B) or 139(4C) or 139(4D) cannot use this form.


Provisions for furnishing return of income in Form ITR-5

To furnish ITR Form 5, the assessee has to follow various provisions that are mandatory. They are as follows:

  • E-filing of return is compulsory
  • Digital signature is compulsory if the entity needs to get books of accounts audited for the purpose of verification of income tax return in ITR Form 5.
  • Other options for verification is E-verification through Aadhar OTP, E-verification by generating EVC and submission of signed copy of ITR-V through post at CPC, bengaluru.

What is the procedure to file ITR-5 Form?

The return has to be filed online with the income tax department. The assessee can file return in following ways:

  • You can furnish return electronically under digital signature.
  • You can transmit data in electronic return and submit verification of return under ITR-V.

While filing return the individual must print out two copies of ITR-V form. One of the copies is signed by the assessee and sent to Post Bag No. 1, Electronic City Office, Bengaluru–560500 (Karnataka) by ordinary post. One he or she should keep with himself or herself for records.


E-filing of Audit Reports

An assessee who needs to furnish audit report after assessment year 2013-14, under sections

  • 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via) - specific exemption available to certain Government and non-government universities and educational institutions
  • 10A- special provision in respect of newly established organization in free trade zone and so on.
  • 10AA - Provisions and deduction available to SEZ
  • 12A(1)(b)
  • 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW

has to file the report electronically on or before the due dates of filing the income tax return.


Format of ITR Form 5

The format of the ITR Form 5 is below:

ITR Form 5

The Income Tax Act states a proper sequence to be followed by the assessee while filing the return of income form 5

  • Part A
  • Schedules
  • Part B
  • Part C
  • Verification

Detailed structure of the ITR Form -5 Form

The Form-5 has been divided into two parts Part-A and Part-B and various schedules:

Part- A includes

  • Part A: General information
  • Part A-BS: Balance Sheet as on 31st March of the financial year
  • Part A-Manufacturing Account for the financial year
  • Part A-Trading Account for the financial year
  • Part A-P&L : Profit and Loss Account for the financial year
  • Part A-OI: Other information
  • Part A-QD: Quantitative details

There are 31 schedules in this form. They are as follows:

  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule-BP: Computation of income under the head “profits and gains from business or profession”
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income Tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule- CFL: Statement of losses to be carried forward to future years.
  • Schedule –UD: Unabsorbed Depreciation
  • Schedule ICDS: Effect of income computation disclosure standards on profit
  • Schedule- 10AA: Computation of deduction under section 10AA
  • Schedule- 80G: Details of donation entitled for deduction under section 80G
  • Schedule- 80GGA: Details of donation for scientific research or rural development
  • Schedule- RA: Details of donations to research associations etc.
  • Schedule- 80IA: Computation of deduction under section 80IA
  • Schedule- 80IB: Computation of deduction under section 80IB
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule 80P: Deductions under section 80P
  • Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule –AMT: Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule IF: Information regarding partnership firms in which you are partner
  • Schedule-EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass Through Income details from business trust or investment fund as per section 115UA, 115UB
  • Schedule ESI: Details of Income from outside India and tax relief
  • Schedule TR: Details Summary of tax relief claimed for taxes paid outside India
  • Schedule FA: Details of Foreign Assets and Income from any source outside India
  • Schedule GST: Information regarding turnover/gross receipts reported for GST

Part -B includes

  • Part B – TI: Computation of total income
  • Part B – TTI: Computation of tax liability on total income

Part -C includes

Tax payments that contains details of:

  • Payment of advance-tax and tax on self-assessment tax
  • Tax deducted at source on income other than salary (16A, 16B, 16C)
  • Tax collected at source
Final step is Verification.

Procedure for filling the Document of verification

The verification is the final step while using ITR Form 5. This verification is done electronically and named as E-verification. All the detailed information is to be entered in the E-verification form. Strike the information that is not applicable. Ensure that the verification has been signed before the furnishing of the return of income. The designation of the person signing the return of income should be mentioned.


New ITR Forms for Financial Year 2018-19

From assessment year 2018-19 Central Board of Direct Taxes introduced new ITR forms for filing income tax return. Various clauses have been added or changed in ITR Form 5. The amendments are as follows:

  • Reporting of information related to fee for late filing of return as per section 234F with effect from 1st April 2018 has been modified. Amount of late fee now is
    1. Income under 5 lakh in all cases will be charged with Rs 1,000 late fee.
    2. Income over or equal to 5 lakh will be charged Rs 5,000 late fee if return filed before 31st december of the financial year.
    3. Income over or equal to 5 lakh will be charged Rs 10,000 late fee in other cases.
  • Reporting of detailed information related to TDS credit claim and TDS deducted.
  • Reporting of detailed information related to income charged to tax at special rates under DTAA.
  • Reporting of detailed information related to income from transfer of carbon credits.
  • Reporting of detailed information related to profit under section 59 that states details related to cessation of liability under section 41(1).
  • Reporting of detailed information related to income not deductible under section 58.
  • Reporting of detailed information related to sum taxable as gifts
  • Reporting of detailed information related to GST paid and refunded.
  • Reporting of detailed information related to capital gains and transfer of unquoted shares.

Supplementary Documents

No documents are required to be attached with the return if filing with ITR Form 5. If they attach any other document with the form it will be detached and returned to the person who is filing the return. Taxpayers just need to match all the tax deductions, or collected or paid with their Tax Credit Statement Form 26AS.


Conclusion

To file an income tax return ITR Forms are very important to be furnished by the assessee. For various types of taxpayers different forms are to be furnished as per the income tax act. ITR Form 5 is one of the forms required to file the return of income. This is to be filed by firms or various other organizations. The details are included in this article.


Frequently Asked Questions

Q- What is ITR Form 5?

ITR Form 5 is a form filed as income tax return by various entities stated in income tax act 1961.


Q- Who needs to furnish ITR Form 5?

The entities who needs to file an income tax return with form 5 are :

  • Firms
  • Association of persons (AOPs)
  • Body of Individuals (BOIs)
  • Artificial Juridical Person (AJP)
  • Estate of deceased
  • Estate of insolvent
  • Business trust and investment fund
  • LLPs (Limited Liability Partnerships)
  • Cooperative societies
  • Local authority

Q- Who can not file ITR Form 5?

ITR- 5 Form is not filed by an individual, company, HUFs and those who file an income tax return in new ITR Form 7.


Q- Is filing ITR Form is mandatory?

Yes, to file return of income tax one must fill ITR forms which states detailed information of the taxpayer and his or her tax liabilities and deductions.


CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.