ITR 5 - What is ITR 5 Form, Structure and How to File ITR 5?

What is ITR-5 Form?

ITR Form 5 is filed by:-

• 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)

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

Who is Eligible to File the ITR 5 Form?

ITR 5 Form can be filed by the following -

• Firm
• Limited Liability Partnership (LLP)
• Association of Persons (AOP)
• Body of Individuals (BOI)
• Artificial Judicial Person (AJP) as specified under section 2(31) (vii)
• Insolvent’s estate
• Deceased’s Estate
• Business trust and investment fund
• Local authority
• Cooperative society

Who Cannot File the ITR 5 Form?

The following persons cannot file ITR 5 form -

• Individual Assessees
• HUF (Hindu Undivided Family)
• Company
• Taxpayers who are required to file returns in Form ITR 7 under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), 139(4F).

Key changes in the ITR-5 Form in AY 2024-25

In Part A General, a new field has been added in Table A to record the details of Remuneration paid or Payable for retiring partners.

Additionally, an option for filing ITR in response to notices under section 153C has been introduced.

In Part A – Trading Account, two new fields have been included to capture Turnover and income from Intraday Trading.

In Schedule House Property, the dropdown for selecting the Type of house property as self-occupied has been removed.

Following the enactment of the Finance Act, 2022, a new section 115BBH has been added to address the tax treatment of income from the transfer of virtual digital assets.

Here are the key changes:

• Added a new schedule, VDA (Virtual Digital Asset), to display income from such transfers.
• Included new fields in Schedules BP, CG, SI, and Part B – TI to accommodate changes related to section 115BBH.

In Schedule 80G, a new field has been inserted in table D, “Donations entitled for 50% deduction subject to qualifying limit,” to capture the ARN (Donation Reference Number) from form 10BD.

In accordance with the Finance Act, 2022, Co-operative societies in Schedule AMT will now be taxed at a rate of 15% instead of 18.5%.

Updates have been applied to Schedule TCS to facilitate claiming TCS credit for another person.

Modifications have been made to the Upload Level Validations table regarding mapping changes and new rules.

What is the Structure of the ITR-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 of 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 34 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-VI-A: 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 a 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 FSI: 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
• Schedule 112A From the sale of equity shares in a company or unit of equity-oriented fund or unit of a business trust on which STT is paid under section 112A.
• Schedule VDA Income from the transfer of virtual digital assets
• Schedule- TPSA Details of Tax on secondary adjustments as per section 92CE(2A) as per the schedule provided in the e-filing utility

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 contain details of:

• Payment of advance tax and tax on self-assessment tax
• Tax deducted at source on income other than salary (16A, 16B, 16C)
• The tax collected at the source

The final step is Verification.

How to File ITR-5 Form?

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

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

While filing returns, the individual must print out two copies of the 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 speed post. One he or she should keep with himself or herself for records.

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Due Date for Filing ITR 5 Form?

• If your accounts are required to be audited as per the rules and laws of the Income Tax Act, then the last date for filing ITR 5 is 31st October.
• When you need to furnish the report in Form 3CEB, then, the last date to file ITR will be 30th November of the relevant assessment year.
• If there is no need to get the accounts audited, then the due date for filing ITR 5 Form is 31st July.

E-filing of Audit Reports

An assessee who needs to furnish an audit report after the 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 is a special provision for newly established free trade-zone organizations.
• 10AA - Provisions and deductions 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 date of filing the income tax return.

Procedure for Filling the Document of Verification

The verification is the final step while using ITR Form 5. This verification is done electronically and is called 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 furnishing the income return. The designation of the person signing the return of income should be mentioned.

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 filing the return. Taxpayers just need to match all the tax deductions, or collected or paid with their Tax Credit Statement Form 26AS.

Now that you know all about the applicability of ITR 5, how to file ITR 5, the ITR 5 Form, and how to file ITR 5, you can go ahead and file your ITR.

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