Income Tax Return - Form ITR-5
For Firms, LLPs, AOPs, BOIs, and other Artificial Juridical Persons
ITR-5 Applicability
ITR-5 is the return form to be filed by entities that are not Individuals, HUFs, Companies (ITR-6), or filing ITR-7. This includes:
- Firms (including LLP - Limited Liability Partnerships).
- Association of Persons (AOP) and Body of Individuals (BOI).
- Artificial Juridical Persons (AJP).
- Co-operative Societies and Local Authorities.
Structure of ITR-5 Form (2 Parts & 31 Schedules)
Part A: General Information & Accounts
- BS: Covers the balance sheet of the taxpayer as on March 31 of the financial year 2021-22.
- P&L: Defines the profit and loss statement for the taxpayer for the last fiscal year.
- QD: Contains quantitative details about stock held or turnover for the financial year 2021-22.
- Manufacturing Account: Shows the manufacturing account for the fiscal year 2021-22.
- Trading Account: Details the trading account for the financial year 2021-22.
- OI: Includes other information related to the taxpayer.
Part B: Total Income & Tax Liability
- TI: This section of ITR-5 form includes the details of total income calculations.
- TTI: It contains details of tax calculated on the total income chargeable for tax.
The form requires detailed financial data (Balance Sheet, P&L, Trading/Manufacturing Accounts) due to the nature of the filing entities (Firms, LLPs, etc.).
Most Critical Schedules of ITR-5
- Schedule HP: This schedule of the ITR-5 form includes the computation of income from house property.
- Schedule BP: This schedule covers the computation of income from profits and gains from business or profession.
- Schedule DOA: Under this schedule of ITR-5 form, comes the information on the depreciation of ‘other assets’ as defined under the Income Tax Act. The assets under this schedule of ITR-5 means the ones on which total capital expense exemption is not allowed.
- Schedule DCG: This schedule covers details of deemed capital gains when the depreciable assets are sold.
- Schedule CG: In this schedule, there are details of both short-term and long-term capital gains.
- Schedule DPM: This schedule of ITR-5 form covers the information about the depreciation on plant and machinery as covered under the Income Tax Act.
- Schedule CYLA: It covers the details of the income statement after setting off the losses of the current year.
- Schedule BFLA: This ITR-5 form schedule talks about the statement of income after setting off unabsorbed losses brought forward from the previous years.
- Schedule CFL: In this schedule of ITR-5 form, you get the details of the statement of losses to be carried forward to the financial years ahead.
- Schedule ICDS: This schedule gives information about the impact of income computation disclosure standards on the earned profits.
- Schedule AMT: Under this schedule of ITR-5 form, comes the computation details of alternate minimum tax to be paid under Section 115JC.
Simple & Transparent Pricing for Income Tax Return 5
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Basic Plan
- Income tax return filing for a taxpayer with taxable income of less than Rs.10 lakhs.
- For firms, LLP, AOP, BOI, cooperatibe societies and local authorites.
Standard Plan
- Income tax return filing for a taxpayer with taxable income of Rs.10 lakhs to Rs 25 Lakhs.
- For firms, LLP, AOP, BOI, cooperatibe societies and local authorites.
Premium Plan
- Income tax return filing for a taxpayer with taxable income of more than Rs.25 lakhs.
- For firms, LLP, AOP, BOI, cooperatibe societies and local authorites.
FAQ's on Income Tax Return - ITR 5
Your Questions Answered
Who is eligible to file ITR-5?
ITR-5 is filed by entities that are not individuals, Hindu Undivided Families (HUFs), or companies. This primarily includes Firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Body of Individuals (BOIs), and cooperative societies.
Can an LLP or Partnership Firm file any other ITR form?
No. All Limited Liability Partnerships (LLPs) and Partnership Firms must compulsorily file their tax returns using ITR-5, irrespective of their turnover or income level.
What are the main financial schedules included in ITR-5?
ITR-5 requires detailed reporting, including the Balance Sheet (BS), Profit & Loss (P&L) statement, and various schedules for business income, depreciation, capital gains, and tax deductions.
Is a Tax Audit mandatory when filing ITR-5?
A tax audit under Section 44AB is generally mandatory if the turnover of the business exceeds the prescribed limits (currently ₹1 Crore, with a higher limit for digital transactions). If an audit is required, the audit report must be submitted electronically.
What is the due date for filing ITR-5?
The due date for filing ITR-5 depends on whether a tax audit is required. If an audit is mandatory, the due date is typically October 31st. If no audit is required, the due date is typically July 31st (always verify the latest dates issued by the Income Tax Department).
How is the income of a Partnership Firm/LLP calculated and taxed under ITR-5?
The firm or LLP is taxed as a separate entity on its total income at the applicable slab rate (currently 30%, plus surcharge/cess). Any salary, bonus, interest, or remuneration paid to partners is allowed as a deduction to the firm but is taxable in the hands of the respective partner (reported in their ITR-3).
Can ITR-5 be filed by entities that opt for the Presumptive Taxation Scheme?
Yes, ITR-5 is the mandatory form for Firms and LLPs that opt for the Presumptive Taxation Scheme under Section 44AD or 44AE. They must still file ITR-5, but they will be relieved from preparing the detailed Balance Sheet and P&L schedules.
What are the key details required for partners in ITR-5?
ITR-5 requires reporting the full details of all partners or members, including their name, address, PAN, and their share of profit/loss in the firm/entity. This is used for cross-verification with the partners' individual returns (ITR-3).
