ITR-5 Online Filing for LLP, Partnership Firms, AOP & BOI - FY 2025-26

ITR-5 must be filed by Limited Liability Partnerships (LLPs), Partnership Firms (registered or unregistered), Association of Persons (AOPs), and Body of Individuals (BOIs) for Financial Year 2025-26 (AY 2026-27). This includes all LLPs irrespective of profit/loss, partnership firms with valid partnership deeds, cooperative societies, joint ventures, and business associations. Companies must file ITR-6 instead. Entities requiring tax audit under Section 44AB must file ITR-5 before 31st October 2026.

The statutory due date for filing ITR-5 for Financial Year 2025-26 (Assessment Year 2026-27) is 31st October 2026 for LLPs, partnership firms, AOPs, and BOIs requiring tax audit under Section 44AB. This extended deadline applies to entities with business turnover exceeding ₹1 crore or professional receipts exceeding ₹50 lakh. Missing the deadline attracts late filing fees of ₹5,000 under Section 234F plus interest penalties under Sections 234A, 234B, and 234C. Belated returns can be filed till 31st December 2026.

Tax audit under Section 44AB is mandatory for ITR-5 filing if your LLP, partnership firm, AOP, or BOI has business turnover/gross receipts exceeding ₹1 crore (for business) or ₹50 lakh (for professionals) during FY 2025-26. Tax audit requires hiring a qualified Chartered Accountant to audit books of accounts and prepare Form 3CA/3CB (audit report) and Form 3CD (audit particulars) which must be uploaded before filing ITR-5. Entities below these limits may file ITR-5 without audit but must maintain proper books of accounts.

No, partnership firms, LLPs, AOPs, and BOIs opting for presumptive taxation under Sections 44AD (business), 44ADA (professionals), or 44AE (transport) must file ITR-4 (Sugam) instead of ITR-5. ITR-5 is specifically for entities maintaining regular books of accounts and undergoing tax audit or having complex income structures. If your partnership firm's turnover is below ₹2 crore (business) or ₹50 lakh (professionals), you can opt for presumptive taxation and file ITR-4 to avoid tax audit requirements.

Late filing of ITR-5 after 31st October 2026 attracts mandatory late filing fees of ₹5,000 under Section 234F. Additionally, interest penalties apply: Section 234A (1% per month on unpaid tax from due date till filing), Section 234B (1% per month for shortfall in advance tax), and Section 234C (1% per month for quarterly advance tax shortfall). Belated returns can be filed till 31st December 2026 under Section 139(4), but all penalties and interest apply from the original due date. Persistent default may lead to prosecution under Section 276CC.

Yes, digital signature (DSC - Digital Signature Certificate) is mandatory for ITR-5 e-filing. LLPs, partnership firms, AOPs, and BOIs must use Class 3 Digital Signature Certificate of authorized signatory (partner/designated partner/member) or the Chartered Accountant filing the return. EVC (Electronic Verification Code) is not available for ITR-5 verification. The return must be digitally signed before submission on the Income Tax e-filing portal for AY 2026-27. DSC can be obtained from licensed certifying authorities like eMudhra, Sify, or NSDL.

Partner remuneration (salary, commission, bonus) is allowable as business expense under Section 40(b) subject to limits: For book profit upto ₹3 lakh - ₹1.5 lakh or 90% of book profit (whichever is higher); for next ₹3 lakh - 60% of book profit; for balance - 40% of book profit. Remuneration must be authorized in partnership deed, actually paid, and within prescribed limits. Interest on capital is allowed at maximum 12% per annum if authorized in deed. These amounts are taxable in partners' individual returns.

Yes, LLPs, partnership firms, AOPs, and BOIs can carry forward business losses, capital losses, and unabsorbed depreciation in ITR-5 for set-off in future years subject to conditions. Business loss can be carried forward for 8 years (must file return before due date under Section 139(1)). Long-term capital loss can be carried forward for 8 years (set-off only against LTCG). Short-term capital loss can be set-off against both STCG and LTCG, carried forward for 8 years. Unabsorbed depreciation can be carried forward indefinitely without time limit.

LLPs, partnership firms, AOPs, and BOIs are taxed at a flat rate of 30% on total income for FY 2025-26 (AY 2026-27). Additionally, surcharge applies if income exceeds ₹1 crore (12% surcharge) or ₹10 crore (15% surcharge subject to marginal relief). Health and Education Cess of 4% is levied on income tax plus surcharge. There is no basic exemption limit for these entities. Effective tax rate ranges from 31.2% (for income up to ₹1 crore) to 34.944% (for income exceeding ₹10 crore) after surcharge and cess.

Yes, Form 26AS (Annual Tax Credit Statement) is essential for ITR-5 filing as it shows complete TDS deducted by clients/parties on payments to your LLP/partnership firm, TDS deducted on interest/commission paid, advance tax deposited, self-assessment tax paid, and refunds received during FY 2025-26. You must download Form 26AS from Income Tax e-filing portal, reconcile all TDS credits with actual TDS certificates (Form 16A), verify advance tax payments, and report accurate figures in ITR-5. Any mismatch may result in scrutiny notices.