Purpose of the ITR-5 Form

The ITR-5 form is designed for income tax filing by specific entities, including firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), Artificial Juridical Persons (AJPs), estates of deceased or insolvent persons, business trusts, and investment funds.

Download Form ITR-5 for AY 2025-26

Eligibility Criteria for ITR-5

This return form is applicable to the following categories of taxpayers:

1. Firms
2. Limited Liability Partnerships (LLPs)
3. Associations of Persons (AOPs)
4. Bodies of Individuals (BOIs)
5. Artificial Juridical Persons (AJPs) (as defined in Section 2(31)(vii))
6. Local Authorities (as defined in Section 2(31)(vi))
7. Representative Assessees (under Section 160(1)(iii) or (iv))
8. Cooperative Societies
9. Registered Societies (under the Societies Registration Act, 1860, or state laws)
10. Trusts (excluding those required to file Form ITR-7)
11. Estates of Deceased Persons
12. Estates of Insolvents
13. Business Trusts (under Section 139(4E))
14. Investment Funds (under Section 139(4F))

However, entities required to file returns under Sections 139(4A), 139(4B), or 139(4D) cannot use this form.

Mandatory E-filing of Audit Reports

Taxpayers who must furnish an audit report under various sections—such as 10(23C), 12A(1)(b), 44AB, 80-IA, 80-IB, or 92E—must submit the report electronically prior to or on the date of filing the income tax return.

Updates in ITR-5 for Assessment Year 2025-26

Several key changes have been implemented for the AY 2025-26 filing cycle:

• Legal Entity Identifier (LEI): A new field requires the disclosure of LEI for entities conducting financial transactions of ₹50 Crore or more during the year.
• MSME Disclosures: Detailed reporting is now required for payments made to Micro and Small Enterprises to ensure compliance with Section 43B(h).
• Research Contributions: Schedule 80GGA now includes additional fields to segregate contributions to universities, research institutions, and rural development programs.
• Capital Gains: Schedule CG requires more granular details, particularly for non-resident taxation and specified securities.
• Audit Reconciliation: Detailed reporting is needed for changes in accounting policies, valuation methods, and reconciliation of turnover between GST and Income Tax.
• Foreign Tax Credit: Enhanced disclosures in Schedules TR and FA to align with Rule 128 claims.
• Start-up Deductions: Eligible start-ups under Section 80-IAC must provide specific registration IDs and declarations.
• Filing Section Dropdown: A new dropdown clarifies the section under which the return is filed (e.g., 139(1), 139(4)), with automatic adjustment based on filing dates.
• Business Codes: Updated to match NIC 2008 classifications for consistency with GST and MCA reporting.

ITR-5 Form Structure and Schedules

The ITR-5 form is organized into two main parts and numerous schedules:

• Part A: Covers general information, balance sheet, manufacturing/trading accounts, profit and loss, other information (OI), and quantitative details (QD).
• Part B: Summarizes total income and tax liability.

Overview of Key Schedules:

The form includes approximately 40 schedules, such as:

• Schedule-HP & BP: Computation of income from House Property and Business/Profession.
• Schedule-DPM, DOA, DEP: Details on depreciation of assets.
• Schedule-CG: Computation of Capital Gains.
• Schedule-OS: Income from Other Sources.
• Schedule-CYLA, BFLA, CFL: Statements on current year losses, brought forward losses, and carry forward of losses.
• Schedule-80G, 80GGA, 80IA, 80P: Details regarding various deductions.
• Schedule-AMT & AMTC: Computation of Alternate Minimum Tax and associated credits.
• Schedule-GST: Reporting of turnover/gross receipts as per GST returns.

The Income Tax Department advises filling out Part A first, followed by the relevant Schedules, Part B, and finally the Verification section.

Procedure to File ITR-5 Online

ITR-5 must be filed online via the e-Filing portal. The submission can be done by:

1. Furnishing the return electronically using a Digital Signature Certificate (DSC).
2. Transmitting data electronically and verifying via Return Form ITR-V.

Note: Firms liable for audit under Section 44AB must mandatorily file using a Digital Signature.

If filing without a DSC, the ITR-V (Acknowledgment) must be signed and sent by ordinary post to the Centralized Processing Center (CPC) in Bengaluru or e-verified. No physical documents (such as TDS certificates) should be attached to the return.

Submission Deadlines

The due dates for filing ITR-5 are as follows:

• Audit Cases: October 31 of the assessment year (for accounts requiring audit under the Income Tax Act).
• Transfer Pricing Cases: November 30 of the assessment year (if Form No. 3CEB is required).
• Other Cases: September 15 of the assessment year (where no audit is required).

Exclusions: Who Cannot Use ITR-5?

The following taxpayers are not eligible to use ITR-5:

• Individuals
• Hindu Undivided Families (HUFs)
• Companies
• Taxpayers required to file Form ITR-7 (under Sections 139(4A) through 139(4F))

Verification Process

To complete the filing:

1. Fill in the verification document with the required details.
2. Strike out inapplicable sections and ensure the form is signed.
3. Select the appropriate capacity/designation of the signatory.
4. Ensure all statements are true; false statements can lead to prosecution and penalties under Section 277 of the Income Tax Act.