Filing the income tax returns is a huge responsibility for every entity and individual who earns income in India. To make the entire process seamless, the Income Tax Department provides for different forms which are applicable based on the source of income. One such form is ITR 5, which is applicable to certain categories, such as an association of persons, body of individuals, limited liability partnerships and more. Through this article, you can learn all about what is ITR 5 and what all entities are required to complete ITR filing using ITR 5.
What is ITR 5?
ITR 5 form is one of the seven different forms applicable to furnish income tax return in India. Filing income tax return is mandatory for all who fall under the current tax slab. Now, we know that ITR Sahaj and Sugam are the most easy Income Tax Return forms, to provide easy filing for individuals and small businesses that fall under the presumptive income scheme. ITR 5 is applicable to other businesses such as partnership firms and Limited liability partnerships, that do not fall under the category of presumptive income scheme.
Who can file ITR 5?
The following are the entities who need to file their returns through ITR 5 form each year:
- Partnership Firms;
- Limited Liability Partnership;
- Body of Individuals (BOI) (for example – B has a business but he dies and leaves his business to A and E. A and E do not enter into a partnership, but both decide to run the business. They become a BOI now);
- Association of Persons (AOP);
- Artificial Juridical Persons – entities which are not body corporate, and cannot be sued in their own name (for example – Universities);
- Local Authorities (Example: Municipal Corporations, etc.);
- Estate of Deceased person;
- Estate of Insolvent;
- Business Trust;
- Investment Fund; and
- Lastly, Co-operative Societies.
Who is not eligible to file ITR 5?
The following entities/persons cannot file their returns through ITR-5 form:
- Hindu Undivided Families;
- Individuals/Salaried Employees;
- Charitable and Religious Trust falling under section 139 (4a);
- Political Parties u/s 139 (4b); and
- Institutions, Research Centres, and Universities u/s 139 (4c and 4d).
Also Read: What is ITR 1 Sahaj?
What is the format of ITR 5?
The form ITR 5 is a bit complex and is divided into different sections. Let’s dive into the different parts of ITR 5:
- Part A – personal information, filing status, and audit information;
- Part A 2 – (information of partners, trade names, and nature of trade);
- Balance Sheet as on the last day of the financial year;
- Details of Manufacturing Account;
- Trading Account;
- Profit and Loss Account;
- Other information;
- Quantitative Details;
- House Property Income;
- Income from Business/Profession;
- Depreciation on Machinery and Plant;
- Depreciation on assets;
- Expense towards Scientific Research;
- Details of Capital Gains;
- Transfer of Virtual Digital Assets;
- Details of Losses;
- Details of Income from other sources;
- Details of deductions, and donations etc.
As we can see, there is a lot of information to be furnished in the ITR – 5 form. So, it is always advisable to get help from certified taxation experts before filing ITR 5.
Any tax assessee can file this income tax return form either through online verification or through offline paper submission.
The online verification part includes the following options:
- Verification through DSC (Digital Signature Certificate);
- Authentication through EVC;
- Aadhar OTP; or
- By transmitting the data electronically and later submitting the verification return.
Once the filing process is complete, the tax assessee needs to take a print of the return verification form and the receipt and send the duly signed and attested copy of the prints to the following address via ordinary post:
Post Bag No. 1, Electronic City Office, Bengaluru 560100.
Pro Tip: there is no need to send any attachments/annexure with the return to the office. If you do so, the documents will be sent back to you.
The offline mode includes two options:
- Filing and submitting the return in paper form; or
- Furnishing bar coded return.
Know all about What is ITR 4 Sugam!
ITR form V is one of the more complex forms related to Income tax return filing in India. Further, the consequences of improper or non-filing of an income tax return leads to hefty penalties on the firm/ LLP or entity. Mandates regarding audits also play an important role in the due and timely submission of the return. If you are unsure of which ITR form is applicable to you, you can reach out to certified experts at LegalWiz.in. We are just a click away!