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ITR 5 Form - What is ITR-5 Form, Structure And How to File ITR-5

The Income Tax Department has introduced various forms for different taxpayers. An assessee should choose the appropriate form based on the source of income. One such Income Tax Return (ITR) is ITR 5 Form a specific class of taxpayers, such as a Firm, LLP, AOP, etc. This article covers all about ITR 5.

What is ITR-5 Form?

This income tax return is meant for firms,  LLPs (Limited liability partnership), AOPs (Association of persons) and BOIs (Body of Individuals), AJP (Artificial Juridical Person), Estate of deceased, Estate of insolvent, Business trust and investment fund. Click here to view the latest ITR-5 form from the Income Tax Department.

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Who is Eligible to File the ITR-5 Form?

This form can be used by the following persons 

  1. Firm
  2. Limited Liability Partnership (LLP)
  3. Association of Persons (AOP)
  4. Body of Individuals (BOI)
  5. Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
  6. Local Authority referred to in clause (vi) of Section 2(31)
  7. Representative Assessee referred to in Section 160(1)(iii) or (iv)
  8. Cooperative Society 
  9. Society registered under Societies Registration Act, 1860 or under any other law of any State
  10. Trust other than Trusts eligible to file Form ITR-7
  11. Estate of Deceased Person
  12. Estate of an Insolvent
  13. Business Trust referred to in Section 139(4E) 
  14. Investments Fund referred to in Section 139(4F)

However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4D) shall not use this form. Not sure which ITR form you need to use? Read our guide for help.

E-filing Audit Reports

In case an assessee who is required to furnish a report of audit under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW he shall file the report electronically on or before the date of filing the return of income.

 

Key Changes in the ITR-5 Form in AY 2024-25

  • Provide the acknowledgement number for the Audit Report and UDIN 
  • Show the sum subjected to be paid to MSME beyond the mentioned time limit 
  • Comprehensive data related to the utilisation of capital gains accounts scheme 
  • Under Schedule 80GGC, the information for the contribution to political parties is sought in detail.  
  • Schedule OS included the declaration of bonus payment under LIC policies, receipt information of dividends from IFSC units 
  • Startups under Section 80-IAC- The schedule asks for the information date of incorporation, nature of business, certificate number obtained from Inter-Ministerial Board, First AY - when deduction claimed, and amount of deduction availed for current AY 
  • MSME particulars are needed, such as registration status and registration number as allotted MSME 

What is the Structure of the ITR-5 Form?

The Form has been divided into two parts and several schedules:

  • Part A: General information
  • Part A-BS: Balance Sheet as on 31st March 2024
  • Part A-Manufacturing Account for the financial year 2023-24
  • Part A-Trading Account for the financial year 2023-24
  • Part A-P and L: Profit and Loss Account for the financial year 2023-24
  • Part A-OI: Other information
  • Part A-QD: Quantitative details
  • Part B

There are 40 schedules details of which are as under:

  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule-BP: Computation of income under the head “profit and gains from business or profession”
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income Tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule 112A: Sale of equity shares in a company or unit of equity-oriented fund on which STT is paid under Section 112A
  • Schedule VDA - Income from transfer of Virtual Digital Assets
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule- CFL: Statement of losses to be carried forward to future years.
  • Schedule - UD: Unabsorbed Depreciation
  • Schedule ICDS: Effect of income computation disclosure standards on profit
  • Schedule- 10AA: Computation of deduction under section 10AA
  • Schedule- 80G: Details of donation entitled for deduction under section 80G
  • Schedule- 80GGA: Details of donation for scientific research or rural development
  • Schedule 80GGC: Details of contributions made to political parties
  • Schedule 80IAC: Deduction in respect of eligible start-up
  • Schedule 80LA: Deduction in respect of offshore banking unit or IFSC
  • Schedule- RA: Details of donations to research associations etc.
  • Schedule- 80IA: Computation of deduction under section 80IA
  • Schedule- 80IB: Computation of deduction under section 80IB
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule 80P: Deductions under section 80P
  • Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule –AMT: Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule-SI: Statement of income which is chargeable to tax at special rates
  • Schedule IF: Information regarding partnership firms in which you are partner
  • Schedule-EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass Through Income details from business trust or investment fund as per section 115UA, 115UB
  • Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
  • Schedule 115TD: Accreted Income under section 115TD
  • Schedule FSI: Details of Income from outside India and tax relief
  • Schedule TR: Details Summary of tax relief claimed for taxes paid outside India
  • Schedule FA: Details of Foreign Assets and Income from any source outside India
  • Schedule GST: Information regarding turnover/gross receipt reported for GST
  • Part B – TI: Computation of total income
  • Part B – TTI: Computation of tax liability on total income
  • Tax payments:
    1. Details of payment of advance tax and tax on self-assessment tax 
    2. Details of tax deducted at source on income other than salary (16A, 16B, 16C) 
    3. Details of collected at source

Sequence for filling out parts and schedules The Income Tax Department recommends assesses to follow the sequence mentioned below while filling out the income tax return.

  • Part A
  • Schedules
  • Part B
  • Verification

How do I File my ITR-5 Form?

This return form has to be filed online with the Income Tax Department on e-Filing portal in the following ways:

  • by furnishing the return electronically under digital signature
  • by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V

When the return is filed online, the assessee should print out two copies of ITR-V Form. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560500 (Karnataka). 

The other copy may be retained by the assessee for his record. A firm whose accounts are liable to audit under section 44AB must compulsorily furnish the return electronically under digital signature.

It can also be filed offline by furnishing the Form 5 in a paper form or by furnishing the bar-coded return. When it is filed on paper an acknowledgment slip is paired along with the return that is to be filed.

No annexure required

No document (including TDS certificate) should be attached with this return form while filing ITR-5. All such documents enclosed with this Return Form will be detached and returned to the person filing the return. Taxpayers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement Form 26AS.

Due Date for Filing ITR-5 Form

  • When accounts are to be audited under the Income-Tax Act - 31 October of the assessment year
  • When report in Form No. 3CEB is to be furnished - 30 November of the assessment year
  • In other cases (where accounts need not be audited) - 31 July of the assessment year

Who Cannot File the ITR-5 Form?

  • Individual assesses
  • Hindu Undivided Family (HUF)
  • Company
  • Taxpayers who must file tax returns in Form ITR-7, under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E) or 139(4F)

How to Fill out the Verification Document?

  • Fill up the required information in the verification document.
  • Strike out whatever is not applicable. Please ensure that the verification has been signed before furnishing the return.
  • Choose the designation/capacity of the person signing the return.
  • Please note that any person making a false statement in the return or the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

Key Changes in the ITR-5 Form in AY 2023-24

  • In Part A General, a new field has been added in Table A to capture the details of Remuneration paid / Payable in the case of the retiring partner more precisely.  
  • Option for Filing ITR in response to notice u/s 153C is added
  •  In Part A – Trading Account, two new fields have been added to capture the details of Turnover and income from Intraday Trading. 
  •  In Schedule House property, the dropdown for self-occupied property has been removed for selecting the Type of house property.
  • As per the Finance Act, 2022, a new section 115BBH has been inserted in the Act to provide taxability of income from the transfer of any virtual digital asset. To give effect to the new section, the following changes have been incorporated: New schedule VDA (Virtual Digital Asset) has been added to show the income earned from the transfer of virtual digital assets. Further new fields are added in Schedule BP, CG, SI & Part B – TI to accommodate the changes related to section 115BBH (Schedule VDA)
  •   In Schedule 80G, in table D “Donations entitled for 50% deduction subject to qualifying limit” One field has been inserted to capture the details of the ARN (Donation Reference Number) of form 10BD. Instructions to Form ITR-5 (A.Y. 2023-24) 
  • As per the Finance Act, 2022, In Schedule AMT, Co-operative societies will be taxable at the rate of 15% instead of 18.5%. 
  •  Schedule TCS has been updated to claim the TCS credit of other person.
  •  Upload level validations table is modified w.r.t mapping changes and new rules.

Key Changes in the ITR-5 Form in AY 2022-23 and AY 2021-22

The key changes in the ITR-5 Form in AY 2022-23 and AY 2021-22 are summarised below:

  • Necessary changes in the ITR form for the increase in the Tax Audit limit to Rs 10 crores (where cash transactions are less than 5% of the total transactions) from 5 crores are incorporated.
  • From AY 2021-22, dividend received is taxable in the hands of the receiver. Necessary changes for the same are made in the ITR form.
  • TDS deduction for cash withdrawals under Section 194N are not allowed to be carried forward to subsequent years. The ITR-5 form has been changed as per the amendments accordingly.

Key Changes in the ITR-5 Form in AY 2020-21

The key changes in the ITR-5 Form in AY 2020-21 are summarised below:

  • In the details of investments in unlisted equity shares, the name, type of company, PAN, movement in the quantity and investment throughout the financial year should be provided.
  • A separate schedule 112A for the calculation of the long-term capital gains on the sale of equity shares or units of a business trust which are liable to STT.
  • The details of tax on secondary adjustments to transfer price under section 92CE(2A).
  • The details of tax deduction claims for investments or payments or expenditure made between 1 April 2020 until 30 June 2020.
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Key Changes in the ITR-5 Form in AY 2019-20

The key changes in the ITR-5 Form in AY 2019-20 are summarised below:

  • Details of recognition as a start-up by DPIIT.
  • Details of declaration filed in Form-2.
  • Information about partnership firms in which you are partner.
  • Bifurcation of donations into cash and non-cash mode of payment.
  • Information on turnover/gross receipt reported for GST.

How do you send your ITR-V to the CPC Office

We have a guide to help you print and send your ITR-V to the CPC office.  Read our Guide →

Also read about:
1. Which ITR Should I File
2. How to file ITR Online
3. How to file ITR-1 (SAHAJ) Online
3. What is ITR 2 Form & How to File ITR-2
4. What is ITR 3 Form & How to File ITR-3 
5. Who and How to File ITR 4 
6. ITR 6
7. How to File and Download ITR-7 Form
8. ITR 3 vs ITR 4
9. ITR 1 vs ITR 4
10. How to File ITR-2 for Income from Capital Gains FY 2022-23

Frequently Asked Questions

Missing the due date for filing ITR-5 when accounts need to be audited can lead to penalties and consequences as per the Income-tax Act.

Taxpayers are required to file Form 10IF electronically only once within the due date in the year in which the taxpayer wants to opt for the new tax regime for the first time. It is compulsory for taxpayers who wants to opt for the New tax regime while filing the return. Further, once the new tax regime is opted under section 115BAD then it cannot be withdrawn.

ITR-5 is for firms, LLPs (Limited Liability Partnership), AOPs (Association of Persons), BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.

If the accounts were audited, the reported figures in the balance sheet should match the audited balance sheet. Activities not accounted for in the books need not be included.

If the ITR-5 is not filed within the due date, a penalty under section 234F will be applicable. The amount of penalty depends on the timing of filing and the entity's total income.