ITR 5 Form What is the ITR 5 Form and How to File ITR 5
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ITR 5 Form What is the ITR 5 Form and How to File ITR 5

Insurance Basics & Financial Advice All businesses and individuals earning above the exemption limit must file Income Tax returns. This is a mandate set by the Income Tax Department.
Depending on the tax liability and type of entity, taxpayers need to use different forms, one of which is the ITR 5 form. Before understanding the nuances of this form, it is necessary to know what is ITR 5.

ITR 5 Form: What is the ITR 5 Form and How to File ITR 5?

8 Minute |

ITR 5 Form: What is the ITR 5 Form and How to File ITR 5?

What is ITR 5 Form

All businesses and individuals earning above the exemption limit must file Income Tax returns. This is a mandate set by the Income Tax Department.
Depending on the tax liability and type of entity, taxpayers need to use different forms, one of which is the ITR 5 form. Before understanding the nuances of this form, it is necessary to know what is ITR 5.
The ITR 5 form is an income tax return form for Body of Individuals (BOI), Cooperative Societies, Limited Liability Partnerships (LLPs), firms, Artificial Judicial Persons (AJPs), Associations of Persons (AOPs), and local authorities. The form is not for persons filing returns under Section 139(4A), 139(4B), 139(4C), and 139(4D).

How to Fill ITR 5 Form

ITR 5 form can be filed online with the Income Tax Department using the e-filing web portal - www.incometaxindiaefiling.gov.in. The document can be verified in different ways:

  • Through Aadhaar OTP
  • Digitally signing the verification part
  • Sending duly signed paper in physical form by posting it to the following address: Centralized Processing Centre (CPC), Income Tax Department, Bengaluru - 560500, Karnataka
  • Authenticating with an Electronic Verification Code (EVC)

You must send the verification form to the CPC in Bengaluru within 120 days from the date of e-filing the return. The assessee will receive a confirmation of the receipt of ITR 5 at the Centralized Processing Centre on the registered email address of the e-filing account. But, if the account requires auditing under Section 44AB, it is compulsory to use a digital signature to verify the return electronically.

Who should use the ITR 5 Form?

ITR 5 should be used by a firm, Association of Persons (AOPs), Limited Liability Partnership (LLPs), Body of Individuals (BOIs), or Artificial Juridical Persons (AJPs) mentioned in clause (vii) of Section 2(31).
Local authorities can also use it mentioned in clause (vi) of Section 2(31), primary agricultural credit societies, cooperative banks, and a representative assessee referred to in Section 160(1), (iii) or (iv). Societies registered under the Societies Registration Act, 1860, or any other state law, the estate of an insolvent or deceased person, a trust other than trusts eligible to file ITR 7 form, investments fund referred to in Section 139(4F), business trust referred to in Section 139(4E), and any other BOI/AOP should also use the ITR 5 form.
Those persons filing their income tax return under sections 139(4A) or 139(4B), or 139(4D) must not use the form.

Instructions on How to fill out ITR 5 form

There are different parts and schedules in ITR 5. You can follow the steps mentioned below to fill out the form correctly:

  1. Fill out all the applicable and mandatory fields
  2. Write “NA” or strike out any fields that do not apply to you
  3. For denoting zero value, write “Nil”
  4. To indicate negative values, write a minus sign (-) before the figures
  5. Round off all figures to the nearest rupee
  6. Similarly, round off your total income, profit and loss values, and tax liability to the nearest multiple of ten
  7. Make sure you do not provide any inaccurate data, or else you shall be liable to prosecution under Section 277 of the Income Tax Act, 1961.

How to fill out the verification document

You must print the ITR 5 income tax return verification document. Once you have the hard copy, complete it:

  1. Enter the required details
  2. Verify if the data provided is correct. This includes your name, address, PAN, contact details, filing status, income details, audit information, tax liability, debt, and taxes paid.
  3. Make sure the document is attested or duly signed.
  4. Mention the capacity/designation of the person verifying/signing the return. Send the duly signed document by speed or ordinary post only to the Centralized Processing Centre, Income Tax Department, Bengaluru - 560500 (Karnataka).
 

What is the structure of the ITR-5 Form?

To understand what ITR 5 means, it is vital to understand its structure. The form has two parts - Part A, and Part B. Part A requires details, including your general information, trading account details, manufacturing account details, and balance sheet and profit and loss account information for a particular financial year. Part B requires taxpayers to provide computation details of their total income and the calculation of tax liability on their total earnings.

The form also has 31 schedules to cover details about essential aspects of the business. Some of these include the following:

  1. Schedule HP - Information about income from house property
  2. Schedule DPM - Information about depreciation on plant and machinery
  3. Schedule CG - Income computation under the ‘capital gains’ head
  4. Schedule DOA - Information about depreciation on other assets
  5. Schedule DCG - Computation of deemed capital gains on selling depreciable assets
  6. Schedule BP - Income computation under the head for ‘profit and gains from business or profession’
  7. Schedule DEP - Information about depreciation over all the assets
  8. Schedule OS - Income computation under the head for ‘other sources’
  9. Schedule BFLA - Income statement after setting off unabsorbed loss carried forward from previous years
  10. Schedule CYLA - Income statement after setting off the current year
  11. Schedule ESR - Deduction under Section 35
  12. Schedule 80G - Information about donations eligible for deduction under Section 80G

Who cannot file the ITR-5 form?

ITR 5 is not for all taxpayers. Those not eligible to use the form include:

  • Individual assessees
  • Companies
  • Hindu Undivided Families (HUFs)
  • Taxpayers filing tax returns under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E) or 139(4F) in the ITR-7 form

Filing returns with the ITR 5 form is a hassle-free process. It is simple to use and takes very little time. Make sure to submit the return by the deadline to prevent any penalties.

FAQs

The entities eligible for filing returns in ITR 5 include firms, Body of Individuals (BOI), cooperative societies, Limited Liability Partnerships (LLPs), firms, Artificial Judicial Persons (AJPs), Associations of Persons (AOPs), and local authorities. It can also be used by societies registered under any state law or the Societies Registration Act, 1860, the estate of an insolvent or deceased person, or a business trust as referred to in Section 139(4E).

The last date for submitting this form is July 31, if Audit is not required. If Audit is required then October 31.

One must fill out the form with utmost accuracy. It is suggested that you seek advice from tax professionals to know how to fill ITR 5 and eliminate the chances of any mistakes.

Generating an audit report online is easy while filing the return. To generate the report, click ‘Audit Report’, followed by ‘3CA - 3CD.’

  1. Is it possible to file a return with the ITR 5 form offline? It is possible to file your return with the ITR 5 form offline. You can submit the printed copy as a physical paper or a bar-coded return.
  2. How to know ITR 5 is for whom?
  3. What is the due date for submitting ITR 5 form?
  4. What if I make errors while filing ITR 5?
  5. How to generate an audit report for ITR 5 form?

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