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

ITR 5 is an income tax return form applicable to Association of Persons (AOPs), LLPs, firms, Body of Individuals (BOIs), Estate of deceased, Artificial Juridical Person (AJP), Business Trust, Estate of Insolvent, and Investment Fund. Filing income tax return is mandatory for all who fall under the current tax slab. Apart from that, any cooperative society or local authority can file their income tax return using the ITR-5 form

DisyTax is your trusted partner for hassle-free and efficient Income Tax Return (ITR) filing services in India. Our ITR-5 service is designed to cater to the specific needs of firms, the Association of Persons (AOP), and the Body of Individuals (BOI) looking to file their income tax returns seamlessly and in correct manner.

Who is eligible to file the ITR 5 Form?

The following entities can use the ITR 5 Form:

·        Firm

·        Limited Liability Partnership (LLP)

·        Association of Persons (AOP)

·        Body of Individuals (BOI)

·        Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)

·        Local Authority referred to in clause (vi) of Section 2(31)

·        Representative Assessee referred to in Section 160(1)(iii) or (iv)

·        Cooperative Society

·        Society registered under Societies Registration Act, 1860 or under any other law of any State

·        Trust other than Trusts eligible to file Form ITR-7

·        Estate of Deceased Person

·        Estate of an Insolvent

·        Business Trust referred to in Section 139(4E)

·        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.

Who Cannot File the ITR 5 form?

The ITR 5 form is not meant for the following categories of taxpayers:

• Individual assesses: Individuals should use the appropriate ITR form based on their sources of income. For example, most individual taxpayers use ITR-1, ITR-2, or other forms as applicable.
• Hindu Undivided Family (HUF): HUFs must also use the relevant ITR form based on their income sources. Typically, they use ITR-2 or other applicable forms.
• Company: Companies have their own set of ITR forms, such as ITR-6, for companies other than those claiming exemption under section 11.
• Taxpayers who using Form ITR-7: Individuals or entities falling under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) are required to use Form ITR-7 for filing their income tax returns. These sections cover charitable trusts, political parties, educational institutions, etc.

Due Date for Filing ITR-5 Form

The ITR 5 due date depends on whether the taxpayer’s accounts need to be audited under the Income-Tax Act and whether they must furnish a report in Form No. 3CEB. Here are the different ITR 5 due dates:

• When accounts are to be Audited under the Income-Tax Act: The due date for filing ITR-5, in this case, is 31st October of the assessment year.
• When a report in Form No. 3CEB is to be furnished: If the taxpayer is needed to furnish a report in Form No. 3CEB, the due date for filing ITR5 is 30th November of the assessment year.

In other cases (where accounts need not be audited): For taxpayers where accounts need not to be audited under the Income-Tax Act, the ITR 5 due dates is 31st July of the assessment year.

Documents Required For ITR-5 Return Filing

• Purchase Bill
• Sales Bill
• Sales Return Details
• Purchase Return Details
• Tax Paid Challans for GST
• From 26AS
• Day to day Administration expenses and General expenses details
• Rental Agreement (if applicable)
• Fixed Assets Invoice Copy (if Applicable)
• Investment details made by Cash
• Investment details made through Bank
• Proof of Source of Cash In-flow and Cash Out-flowk
• Loan details from Bank or Third Party
• Outstanding receivables and payables
• Company’s Pan and two DSCs
• Details of Bank used for business transactions (Acct No, IFSC Code)
• Statement from Bank used for business transactions
• Break-up of statement from Bank used for business transactions

How to file ITR 5 Form

• Register or log in to the e-Filing portal using your PAN as user ID.
• Navigate to e-File and click on Income Tax Return.
• Choose the ITR form number and Assessment Year from the drop-down menu.
• Fill in the essential details asked in structure of that ITR form and calculate the payable tax.
• Pay the final tax liability, if any, and file the income tax return.
• Verify the ITR using Aadhaar OTP, EVC, or 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 Documents Required

It’s important to note that there is no requirement to attach documents with the ITR 5 income tax form.

Structure of ITR-5 Form:-

The ITR5 Form is structured into several parts and schedules to facilitate the comprehensive reporting of income, deductions, and tax liability. Below is an overview of the structure of the ITR5 Form:

Part A: General Information

This section gathers essential information about the taxpayer, such as name, PAN (Permanent Account Number), address, and contact details.

Part A-BS: Balance Sheet

This part is dedicated to reporting the entity’s financial position with a balance sheet as of the specified date.

Part A-Manufacturing Account

Here, details related to the manufacturing account for the fiscal year are recorded.

Part A-Trading Account

This section captures information regarding the trading account for the financial year.

Part A and L: Profit and Loss Account

Here, you report the profit and loss account for the financial year.

Part A-OI: Other information

This section covers additional financial information relevant to the taxpayer’s income.

Part A-QD: Quantitative details

Quantitative details related to various aspects of income are provided here.

Part B-

Part B is a pivotal section where taxpayers calculate and report their total income and tax liability.

Schedules:-

The ITR 5 income tax form in India includes 31 schedules, sections, or categories within the form. These schedules capture details and computations related to the taxpayer’s income and tax obligations. They cover various aspects, such as income from different sources, deductions, depreciation calculations, capital gains, and foreign income. Taxpayers must fill out these schedules as applicable to their financial situation to provide a comprehensive picture of their income and tax liability when filing their income tax returns. Each schedule serves a unique purpose in organizing and reporting financial information to the Indian Income Tax Department.

Part B – TI: Computation of Total Income

In this section, the taxpayer calculates their total income based on the information provided in the schedules.

Part B – TTI: Computation of Tax Liability on Total Income

This part focuses on determining the tax liability based on the computed total income.

Tax Payments:

This section includes details of payments made towards advance tax and self-assessment tax.

• It also includes details of tax deducted at source on income other than salary (16A, 16B, 16C).
• Additionally, it captures details of tax collected at the source.
• Sequence for Filling Out Parts and Schedules:

The Income Tax Department recommends taxpayers follow the following sequence while filling out the income tax return:

• Part A
• Schedules
• Part B
• Verification

Why Choose DisyTax for ITR-5 Form Filing?

DisyTax is your preferred choice for ITR 5 income tax filing, offering a range of benefits that make the process easy, accurate, and hassle-free. Here’s why you should choose DisyTax for your ITR-5 filing needs:

• Expert Guidance

Our expert team of experienced tax professionals provides expert guidance throughout the filing process. We ensure that your ITR-5 is filed accurately and complies with tax regulations.

• Deduction Optimization

Our experts help you optimize deductions, ensuring you take advantage of all available tax benefits, ultimately reducing your tax liability.

• Review and Verification

Our team reviews your ITR-5 form for accuracy and completeness before filing. This step ensures that your return is error-free and ready for submission.

• Secure Filing

We prioritize the security of your financial data. We use the latest encryption technology to keep your information safe during filing.

• Timely Reminders

DisyTax provides timely reminders for important tax deadlines, ensuring you never miss a filing date.

• Post-Filing Support

Our support team is available to address any queries or concerns you may have during or after the filing process.

Let DisyTax assist you in ITR 5 income tax filing, allowing you to focus on your business and financial well-being.

Contact us today for expert assistance in meeting your tax obligations and ensuring a smooth filing experience. With DisyTax, you can be confident that your ITR-5 is filed accurately and on time, providing peace of mind and ensuring compliance with tax regulations.

ITR-5 Return Filing FAQ’s

Who should file the ITR-5 Form?

The ITR-5 Form is meant for firms, Limited Liability Partnerships (LLPs), Bodies of Individuals (BOIs), Associations of Persons (AOPs), estates of deceased individuals, artificial juridical persons, business trusts, investment funds, insolvent individuals, estates, cooperative societies, and local authorities. However, individuals falling under specific sections like 139(4A), 139(4C), 139(4B), or 139(4D) should not use this form.

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

The due date for filing ITR-5 depends on whether the taxpayers accounts need to be audited or whether they must furnish a report in Form No. 3CEB. Its 31st October for audited accounts, 30th November if Form No. 3CEB is required, and 31st July for other cases.

Who cannot use the ITR-5 Form?

The ITR-5 Form is not suitable for individual assesses, Hindu Undivided Families (HUFs), companies (except those claiming exemption under section 11), and taxpayers falling under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F), who are required to use Form ITR-7.

Are any documents required to be attached to the ITR-5 form ?

No, there is no requirement to attach documents with the ITR-5 form.

What is the structure of the ITR-5 Form?

The ITR-5 Form comprises several parts and schedules, including sections for general information, balance sheets, manufacturing accounts, trading accounts, profit and loss accounts, quantitative details, computation of total income, tax liability, and schedules for various income sources.

What the recommended sequence for filling out the ITR-5 Form?

The Income Tax Department recommends the following sequence: Part A, Schedules, Part B, and Verification.

Why choose DisyTax for ITR-5 filing?

DisyTax offers expert guidance, deduction optimization, review and verification services, secure filing, timely reminders for tax deadlines, and post-filing support, making the ITR-5 filing process easy, accurate, and hassle-free.

Can a local authority use the ITR-5 Form for filing taxes?

Yes, local authorities can use the ITR-5 Form for filing their income tax returns.

What if my accounts need to be audited, and I miss the due date for filing ITR-5?

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.

Is it mandatory to e-file the ITR-5 Form?

Yes, for certain taxpayers, e-filing of the ITR-5 Form is mandatory as per income tax regulations.

Can an LLP (Limited Liability Partnership) file the ITR-5 Form?

Yes, an LLP can use the ITR-5 Form for filing income tax returns.

Is there any special schedule for reporting foreign income in the ITR-5 Form?

Yes, Schedule FSI is used to report income from outside India and tax relief.

Can a business trust or investment fund use the ITR-5 Form?

Yes, business trusts and investment funds are among the entities eligible to use the ITR-5 Form.

What is the penalty for late filing of the ITR-5 Form?

The penalty for late filing varies depending on the extent of delay and the taxpayers income. Its essential to file on time to avoid penalties.

Can the ITR-5 Form be revised after filing?

Yes, you can revise the ITR-5 Form within the specified time limit if you discover any errors or omissions after the initial filing.

Are there any income tax deductions specifically available for entities using the ITR-5 Form?

The ITR-5 Form allows entities to claim deductions under various sections of the Income Tax Act, depending on their eligibility and sources of income.

What is the role of Form No. 3CEB in determining the due date for filing ITR-5?

If a taxpayer is required to furnish a report in Form No. 3CEB, the due date for filing ITR-5 is extended to 30th November.

Can an estate of a deceased individual use the ITR-5 Form?

Yes, estates of deceased individuals can use the ITR-5 Form for filing income tax returns.

Is there a fee for filing the ITR-5 Form through DisyTax?

DisyTax may charge a fee for its services, and the fee may vary depending on the specific service package chosen by the taxpayer. We offer services at competitive and affordable prices to assist taxpayers with their ITR-5 filing needs.

What if I make a mistake in the ITR-5 Form after filing it?

If you discover an error or omission in the ITR-5 Form after filing, you can rectify it by filing a revised return within the specified time limit.

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