There are different forms introduced by the Income Tax Authority to be filled in by a taxpayer when filing their income tax returns. However, you need to be aware of the relevant form you need to fill in based on your income source.

 

An ITR 5 Form is a specific type of form applicable for certain sections of taxpayers such as the Association of Persons (AOP) or LLP (Limited Liability Partnership), etc. Apart from this, many ITR Forms, such as ITR 2, ITR 4, ITR 5 and a few others, are available. 

 

Before filing your tax returns for a particular assessment year, you must know the particulars of the form that you need to fill in. That said, filing your tax returns is not only mandatory but forms a part of the social responsibility towards your country.

 

Read on to learn more about what ITR 5 means to a taxpayer and how to file ITR 5 online.

Components of an Income Tax Return Form 5

Before delving into the two main subdivisions of ITR 5, you need to understand what is ITR 5 specifically. Form ITR 5 means you can file your income tax returns if you belong to the following entities:

  • AOP or Association of Persons

  • AJP or Artificial Juridical Person

  • Business Trust

  • Estate of Insolvent

  • LLP or Limited Liability Partnership

  • Local Authority

  • Investment Fund

  • A firm

  • BOI or Body of Individuals

  • Cooperative Society

  • Estate of the Deceased Person

 

An ITR 5 Form has two different parts called ‘Part A’ and ‘Part B’. 

 

Here are a few details you must furnish when filling out Part A:

  • General details

  • Details of your trading account for a particular financial year

  • Details of your balance sheet on the last day of a particular financial year

  • Details of profit and loss account of the financial year

  • Details of your manufacturing account for a specific financial year

 

When completing your Part B of ITR 5, you need to compute your total income and provide details for the same. In addition, you have to assess your tax liability based on your entity’s total earnings. 

 

Apart from these 2 parts, ITR 5 also contains approximately 31 schedules. A few key schedules have been briefly summed up below:

  • Schedule BP pertaining to the income computation related to the profits gained from the business

  • Schedule HP related to earnings generated from house properties

  • Schedule DPM discusses details with regard to plant or machinery depreciation

  • Schedule DOA relates to the calculation of depreciation of other assets

  • Schedule CG pertaining to income computation of capital gains

 

When filing your income tax returns, you need to follow a specific sequence as prescribed by the Income Tax Authority of India. First, you need to complete Part A of ITR 5, following which you must fill in the details of various schedules.

 

Complete Part B of an ITR 5 Form then, followed by initiating a verification step. You need to follow the sequence to file your returns without running into any problems. 

How to File ITR 5: The Process Involved

While you are familiar with the purpose of an ITR 5 and for whom it is applicable, you must understand the process involved in the ITR 5 online filing. 

 

To fill the ITR 5 Form online, you need to go to the Income Tax Department portal at https://www.incometax.gov.in/iec/foportal/. 

 

However, there are two ways to fill in the form. The first method is to file your returns using the digital signature. 

 

The second option involves transmitting the data in your return electronically and then submitting a verification of your returns using the ITR 5 Form.

 

Upon filing your returns online, you need to print two copies of ITR 5. You need to send one of the two copies, after signing it, to the Centralised Processing Centre of the IT Department located in Bengaluru. This copy has to be sent via post.

 

Retain the other copy for your future reference. If your company’s accounts have to be audited per Section 44AB, it is essential to furnish your returns electronically with your digital signature.

 

In addition, you can fill out your verification document by completing all the necessary details and striking out inapplicable sections in the form. Check if the details you have entered are accurate and if you have attested the ITR 5 Form. 

 

It is also important to include the capacity and designation of the person verifying your returns. 

Instructions to Adhere When Filing an ITR 5 Form

Following the instructions accurately is essential when entering details in ITR 5. Here are a few essential points to consider:

  • Write NA (Not Applicable) against any schedule that may not be applicable to you

  • Use Nil when you want to denote zero

  • Add the minus sign before values to denote negative values

  • Make sure you round off all values to their nearest rupee

  • Avoid entering false and incorrect data when filing your ITR 5

  • Round off the values of profit and loss, total income, etc., to the nearest ten rupees multiple

 

Now that you know what ITR 5 means and how to file ITR 5 online, ensure you file your returns before the due date to avoid paying any penalty. Follow the simple process mentioned above and file your ITR 5 Form hassle free.

FAQs on What is ITR 5 and How to File ITR Form 5

Who are the entities not eligible to file ITR 5?

All individual taxpayers, companies and HUF members cannot file their returns using ITR 5 Form. Also, taxpayers who file their returns through ITR 7 Form cannot use ITR 5.

What is the due date for filing an ITR 5 Form?

In instances where accounts need not be audited, the due date for filing returns is 31st July of an assessment year. However, when the business account needs to be audited, the due date is 31st October of an assessment year. 

 

The due date is 30th November of an assessment year when you need to furnish the report in Form 3CEB, meant primarily for international and specific domestic transactions of any company.

Is there any requirement to attach Annexures with ITR 5?

There is no need to attach any supporting documentation when filing your returns using the ITR 5 Form.

What is the timeline for the ITR 5 verification form to be received at the Centralised Processing Centre in Bengaluru?

The verification form must reach within a stipulated deadline of 120 days from the date of filing your e-returns.

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