ITR 5 Form

What is ITR-5 Form?

The ITR-5 Form is an income tax return form applicable to entities such as firms, LLPs, associations of persons (AOPs), bodies of individuals (BOIs), estates, trusts, and artificial juridical persons not required to file ITR-7. It is used to report income, deductions, and taxes payable for a given financial year.

This form captures a wide range of financial and operational details, including balance sheet data, income from various sources, and tax computation. It must be filed electronically either with a digital signature certificate or by using an electronic verification code. The form is structured to accommodate diverse organisational setups and comply with the reporting requirements laid out under the Income Tax Act.

Who is eligible to file the ITR-5 form?

ITR-5 can be filed by a wide range of taxpayers who are not individual or HUF taxpayers. Eligible filers include partnership firms, LLPs, associations of persons (AOPs), bodies of individuals (BOIs), estates of deceased persons or insolvents, and business trusts.

Societies, cooperative societies, and artificial juridical persons not claiming exemption under section 11 can also use ITR-5. It allows these entities to report income under various heads such as business or profession, house property, and capital gains. However, those who are required to file ITR-7 for claiming exemption under charitable or religious purposes cannot use ITR-5.

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

For Assessment Year 2024–25, ITR-5 introduced several updates aimed at improving tax transparency and aligning with policy amendments. Entities must now disclose details of income deferred due to advances against capital assets under section 56(2)(viib), promoting better reporting of such transactions.

Other changes include revised fields for reporting exempt income under multiple sections and a more detailed format for foreign remittances. Entities must also provide classification of interest income and disaggregate key financial figures. These changes reflect the government’s effort to enhance compliance and ensure that tax filings reflect accurate and comprehensive financial data.

What is the structure of the ITR-5 form?

The ITR-5 Form comprises several parts and over 30 schedules, designed to collect a broad spectrum of information. Part A captures general details, balance sheet figures, and the profit and loss account, while Part B focuses on the computation of total income and tax liability.

Schedules are included for different heads of income, deductions, taxes paid, and disclosures under various statutory provisions. Some important schedules are for depreciation, capital gains, MAT computation, and dividend income. The structure is modular, allowing different entities to fill only the relevant schedules. Filing it accurately is crucial for effective compliance and assessment.

How do I file my ITR-5 form?

Filing of ITR-5 is done online through the Income Tax Department’s official e-filing portal. The return must be submitted electronically using a valid digital signature certificate or by verifying through an electronic verification code (EVC), depending on the entity's nature and legal requirement.

The process begins by downloading the ITR-5 utility or using authorised software. After completing the form with required details and schedules, it must be validated and uploaded to the portal. Attachments such as audit reports, financial statements, and other mandatory forms should be filed along with it to complete the return submission.

Due date for filing ITR-5 form

The due date for filing ITR-5 is usually 31st October of the assessment year for entities requiring an audit. For those involved in international or specified domestic transactions, the due date is extended to 30th November.

Meeting the deadline is crucial to avoid late filing fees under section 234F, which can go up to Rs.10,000. Additionally, delay in filing can restrict the carry-forward of certain losses. Staying compliant with the filing timeline helps ensure uninterrupted business operations and avoids unnecessary legal or financial consequences.

Who cannot file the ITR-5 form?

Individuals, Hindu Undivided Families (HUFs), and companies cannot file ITR-5. This form is also not applicable for those entities who are required to file ITR-7, such as trusts, political parties, and institutions claiming exemptions under section 11 or other specific provisions of the Income Tax Act.

Additionally, salaried individuals, pensioners, and those deriving income from house property or capital gains in their individual capacity must use different ITR forms. Filing the wrong form can lead to rejection or notice from the department. It’s important to determine your eligibility before choosing ITR-5 for filing.

How to fill out the verification document?

The verification section of ITR-5 is where the authorised person certifies that the information furnished in the return is true and complete. This section must include the name, designation, and PAN of the person verifying the return, typically a partner or designated representative of the firm or entity.

For entities filing with a Digital Signature Certificate (DSC), the verification is complete upon submission. If filing using an EVC, the code must be generated and authenticated within the specified timeline. An unsigned or incomplete verification can invalidate the return, making this step essential in finalising the ITR submission.

Key changes in the ITR-5 form in AY 2023-24

In Assessment Year 2023–24, the ITR-5 Form saw updates related to new tax regimes and additional disclosures. One key change was the inclusion of fields for opting under the concessional tax regime introduced under section 115BAC for certain firms and LLPs.

Additional disclosures were introduced for capital gains classification, dividend income, and interest accrued. Entities were also required to provide more detailed information on audit reports, tax credits, and Schedule PTI (pass-through income). These changes improved the alignment of tax data with other regulatory filings, thereby increasing the accuracy and transparency of returns.

Key changes in the ITR-5 form in AY 2022-23 and AY 2021-22

For AYs 2022–23 and 2021–22, the ITR-5 Form was revised to incorporate changes in the Finance Act and evolving compliance frameworks. A key update was the introduction of a new schedule for alternate tax regimes under sections 115BAC and 115BAD, allowing eligible entities to declare their choice.

Another significant addition was improved disclosure on virtual digital assets (VDAs), if applicable. These updates also streamlined the reporting of financial transactions and foreign assets, while expanding the validation rules to prevent errors. The changes reflected the government’s shift towards digitisation and stricter compliance tracking.

Key changes in the ITR-5 form in AY 2020-21

The AY 2020–21 updates to the ITR-5 Form reflected the impact of COVID-19 on compliance timelines and tax obligations. Provisions were added for entities to disclose tax reliefs claimed under various government stimulus measures announced during the pandemic.

The form included fields for capital gains relief under Sections 54 to 54GB and offered more detailed income classification. Changes were also made to match entries with the new Form 26AS format, which had been expanded to include more transaction types. These modifications aimed to ensure thorough reconciliation between different tax filings and data sources.

Key changes in the ITR-5 form in AY 2019-20

In AY 2019–20, ITR-5 was updated to accommodate mandatory GST reconciliation. Entities had to report turnover as declared in GST returns, facilitating alignment between income tax and indirect tax systems. This helped reduce discrepancies and prompted better transparency in financial declarations.

Other changes included disclosures for shareholding patterns, investments in unlisted shares, and detailed reporting for audit requirements under section 44AB. The form also required additional data on cash transactions exceeding specified limits. These updates made the filing process more data-intensive but enhanced compliance and audit readiness for the authorities.

Conclusion

The ITR-5 Form is a comprehensive income tax return applicable to entities such as LLPs, AOPs, BOIs, and firms not claiming exemptions under section 11. It accommodates diverse income sources, deductions, and tax structures, ensuring proper disclosure of financial data.

Due to its detailed nature, the form undergoes frequent updates in line with legislative and policy changes. Understanding its eligibility criteria, structure, and filing method is essential for timely and accurate tax compliance. Filing ITR-5 correctly helps avoid penalties and ensures smooth processing of tax assessments and refunds.