The ITR Form 5 is meant for taxpaying entities such as firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Artificial Judicial Person and Body of Individuals (BOIs).
It is not for individuals or Hindu Unified Families. Also taxpayers covered under Sections 139 (4A) or 139 (4B) or 139(4C) or 139 (4D) are need not file Form 5.
This form can be submitted online only. It is mandatory for firms, whose accounts are liable to audit under the section 44AB of the IT Act, to furnish the return online with a digital signature. The form is an annexure-less form. Hence, no documents are to be attached with the return when being sent to the Income Tax department.
Who can file ITR Form 5 (Eligibility)
ITR Form 5 is not applicable to individuals or Hindu Unified Families. This form is specifically meant for a firm, or an LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii),estate of deceased, estate of insolvent, business trust and investment fund, cooperative society and local authority.
Individuals who are required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) are not eligible to use this form.
How to download Form ITR-5
The Form 5 can be filed online alone. The Form 5 is available for download on the official website of the Income Tax department. There is no fee charged for the download of the form.
You can fill the form online and submit the same using a digital signature certificate.
Once you have done that, you need to complete the acknowledgement form in ITR 5. Print out two copies of the acknowledgement form. Sign one of them and send it to the Income Tax Office in Bengaluru. The address is Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). Keep the second copy for your own record.
Dates for filing ITR Form 5
The last day for filing ITR 5 is August 31. While the last date for filing returns for most people is July 31, for those that are required to get their accounts audited, the due date is different.
Structure of ITR Form 5
The ITR Form 5 has two parts and 36 schedules. While Part A has five sub-sections, Part B has two.
Part A:
General Information: This is where you fill out your personal details such as name, address, PAN details, Aadhaar number and Email address.
BS: Here you give the details of the balance sheet of your firm or LLP.
P&L: This is where you input your firm’s profit and loss statement.
OI: Here the taxpayer has to fill out other relevant information. If the book of accounts of the proprietory business or profession is to be audited, it is mandatory to fill up the information required from items 1 through 16. Otherwise, you can fill up only those items that are relevant to you.
QD: In this case fill up the quantitative details of trading and manufacturing accounts.
Part B
TI: Here you input the details of your total income.
TTI: This is where the computation of tax is done. Based on your income, your taxable income is calculated. Some parts are self-populated.
While there are 36 schedules with the form, here are some of the important ones.
Schedule HP: Input details of any income from house property.
Schedule BP: Here you key in details of computation of income from business
Schedule DPM: If you have any plant and/ or machinery, mention the depreciation of the same.
Schedule DOA: If you have any other assets, input the depreciation of the assets.
Schedule DCG: If you have sold any depreciable asset, this is where you enter your capital gains from the sale.
Schedule CG: Put in details of any capital gains.
How to fill ITR-5
Each and every section of ITR-5 as discussed above has to be filled carefully. The IT department has made detailed instructions available on its website for filling out each ITR Form.
The instructions issued by the IT department take you through each point that needs to be filled out for the form.
As mentioned above, Form 5 is divided into two parts and 36 schedules. The first part requires you to fill information regarding your firm, general information, income details, profit and loss details and also your balance sheet.
Once you are through with the first part, you will be taken to Schedule HP where you declare your income from any house property. Next, you are taken to Schedule BP where the computation of your taxable income is done.
In the Schedule DPM, you have to mention the depreciation of plant and machinery in the year. This does not include plant and machinery on which full capital expenditure is allowable. Next is Schedule DOA where the depreciation of any other asset such as land, building, furniture and fittings, intangible assets and ships is to be mentioned.
Schedule DEP is where the depreciation for all your assets is computed automatically based on Schedules DPM and DOA. Schedule DCG is where you mention the capital gains upon sale of any depreciable asset during the year.
Before you reach part B, you have to fill out the following schedules: ESR, CG, OS, CYLA, BFLA, CFL, UD, ICDS, 10AA, 80 G, 80GGA, RA, 80-IA, 80-IB, 80-IC, 80-IE, 80P, VIA, AMT, AMTC, SI, IF, EI, PTI, FSI, TR, FA, GST.
In Part B, the first section is for computation of total income. You need to enter your incomes for each of the heads provided. Loss from any source should first be set off against income from any other source, under the same head of income, for the current year. The remaining loss under various heads of income can be set off against income computed under other heads.
In the Part B TTI section, your tax liability is computed. Your tax liability is computed on the aggregated total income at the applicable rates.
Then, complete the verification of the forms by enter the name, father’s name and PAN of the person who is filing the return.
If it is an firm, any of the Managing Partners can verify the income tax return. If a Managing Partner is not available, the verification can be done by any other partner of the firm.
If it is an LLP, the Designated Partner of the LLP can verify the return. If a Designated Partner is not available, the verification can be done by any other partner.
In case of an association, the return of income can be verified by the Principal Officer of the association. In the absence of a Principal Officer, any other member can verify.
How to file ITR-5 offline
The Income Tax department doesn’t allow offline filings for ITR Form 5.
How to file ITR-5 online
The first step for filing ITR 5 online is to download the form from the e-filing portal of the official website of the Income Tax department. The Form is freely available for download.
You can fill in the details as mentioned above. Once you have filled the form, you can digitally sign the verification form. The designated signatory can part issue a digital signature certificate—the digital equivalent of signature—and complete the verification process. This is mandatory if the firm is audited.
If you don’t have a digital signature certificate, you can verify the ITR through ITR-7 or using the Electronic Verification Code (EVC), or Aadhaar/bank account details. EVC is a 10-digit code that is sent to your registered contact details.
FAQs
Who is eligible for filing ITR Form 5?
ITR 5 is to be filed by a firm, or an LLPs, AOP, BOI, artificial juridical person referred to in section 2(31)(vii),estate of deceased, estate of insolvent, business trust and investment fund, cooperative society and local authority.
In simple terms, it is for persons other than individuals, Hindu Unified Families, company and person filing Form ITR-7. Persons filing return under section 139(4A) or 139(4B) or 139(4C) or 139(4D) of the IT Act are also not eligible.
Can I fill the form on paper and send it to the IT department?
This form is to be strictly filled online, according to the Income Tax department. If you fill the form offline and send it to the IT department, it will not be considered a valid return.
Who is the designated person to verify the return in case of a cooperative society?
The designated Principal Officer is entitled to verify the IT return for a Cooperative Society. However, in the absence of a Principal Officer, any member of the society can verify the return. The same rule will hold for associations.
I run a firm with a partner. Who can verify the return?
In case of a firm, any of the Managing Partners can verify the IT return. However, if a Managing Partner is unavailable or absent, any of the other partners of the firm can verify the return. In case of an LLP, the Designated Partner has to complete the verification.
How will I get my refund?
In all cases, tax refunds are credited to the bank account of the individual or firm for which the return was filed. At the time of filing return, the form asks for details of all bank accounts and the account where you would like to get the refund. Details include account number, branch details and IFSC Codes. Make sure that the bank account you choose has Core Banking Solution system enabled on your account.
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