ITR-5 is an Income Tax Return (ITR) form used by entities such as firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), artificial juridical persons, business trusts, and investment funds. This form is not meant for individuals, HUFs, or companies that are required to file ITR-6 or ITR-7.
ITR-5 can be filed by the following entities:
• Partnership firms (excluding LLPs required to file ITR-6)
• Limited Liability Partnerships (LLPs)
• Association of Persons (AOPs)
• Body of Individuals (BOIs)
• Artificial juridical persons
• Business trusts
• Investment funds as per Section 115UB
• Estate of deceased individuals
• Estate of insolvent persons
• Cooperative societies
• Local authorities
Entities that cannot file ITR-5 include:
• Individual taxpayers (should file ITR-1, ITR-2, ITR-3, or ITR-4)
• Hindu Undivided Families (HUFs)
• Companies (must file ITR-6 or ITR-7)
• Entities required to file ITR-6 (companies other than those claiming exemption under Section 11)
• Entities required to file ITR-7 (charitable and religious trusts, political parties, institutions, etc.)
Before filing ITR-5, the following documents should be kept ready:
• PAN card of the entity
• Aadhaar card (if applicable)
• Bank account details
• Business financial statements (Profit and Loss account, Balance Sheet)
• Form 16A, 16B, or 16C (if applicable)
• TDS certificates from various sources
• Capital gains statements (if applicable)
• Interest certificates from banks or financial institutions
• Details of tax-saving investments and deductions
• GST details (if applicable)
• Audit reports (if applicable)
• Foreign income and asset details (if applicable)
ITR-5 can be filed online through the Income Tax e-Filing portal. The steps involved are:
1. Visit the Income Tax e-Filing portal.
2. Log in using the PAN of the entity, password, and captcha.
3. Click on ‘File Income Tax Return’.
4. Select the assessment year and mode of filing.
5. Choose ‘ITR-5’ from the list of available forms.
6. Fill in all the required details related to business income, investments, deductions, and tax liabilities.
7. Verify the tax payable or refundable amount.
8. Submit the form and verify using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
9. Download the acknowledgment for future reference.
The due date for filing ITR-5 depends on whether audit is required:
• For entities not requiring an audit – July 31st of the assessment year.
• For entities requiring an audit – October 31st of the assessment year.
• For entities required to furnish a report under Section 92E (international transactions) – November 30th of the assessment year.
• If the total sales, turnover, or gross receipts exceed Rs. 1 crore (Rs. 10 crore if cash transactions are below 5%), a tax audit is mandatory under Section 44AB.
• LLPs with a turnover above Rs. 40 lakh or contribution exceeding Rs. 25 lakh must undergo an audit.
• If income is declared lower than the prescribed rate under the presumptive taxation scheme, an audit is required.
Failing to file ITR-5 within the due date may result in penalties:
• A late fee of Rs. 5,000 if filed after the due date but before December 31st.
• A late fee of Rs. 10,000 if filed after December 31st.
• No penalty if total income is below Rs. 5 lakh, but a late fee of Rs. 1,000 applies.
• Additional interest may be charged on unpaid taxes.
• Compliance with tax laws.
• Faster processing of tax refunds.
• Proof of income for loan and credit applications.
• Avoidance of penalties and legal issues.
• Helps in financial planning and investment tracking.
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• Step-by-step guidance for hassle-free filing.
• Expert review to ensure compliance with tax laws.
• Quick and error-free submission.
• Maximum tax savings by applying eligible deductions.
• Timely filing to avoid penalties.
With Vakil360, taxpayers can ensure their ITR-5 filing is done correctly and on time, ensuring compliance with tax regulations. Contact us today for professional tax filing services.
