ITR 5 FILING FOR A.YR. 2024.25
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ITR-5 Return Filing
ITR-5, an income tax return form, is specifically designed for firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), and Body of Individuals (BOIs). It caters to entities other than individuals, catering to partnership firms, LLPs, AOPs, and BOIs, ensuring they comply with income tax regulations. ITR-5 is particularly applicable to these non-individual entities, serving as the designated form for filing income tax returns. Partnership firms and entities such as AOPs and BOIs utilize ITR-5 to report their income, ensuring accurate disclosure of financial details and adherence to tax norms. Understanding how to file ITR-5 is crucial for these entities to comply with income tax regulations and fulfill their tax obligations.
What is an ITR 5 Form?
ITR-5 is an income tax return form in India that is filed by a specific section of taxpayers. As mandated by the Income Tax Department, it is designed for firms, Association of Persons (AOP), and Body of Individuals (BOI) who are not needed to file their income tax returns as companies.
Who Is Eligible For ITR-5 Filing?
The following entities are required to file an ITR-5 return.
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Firms (including Limited Liability Partnerships - LLPs)
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Association of Persons (AOP)
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Body of Individuals (BOI)
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Artificial Juridical Person
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Estate of deceased & insolvent
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Juridical person under section 2(31)(vii)
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Cooperative Societies
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Local Authorities
Who Is Not Required To File the ITR-5 Form?
Here is the list of entities that are not required to file the ITR-5 form but may use other ITR forms based on their specific circumstances:
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Individual assessee: Individuals should use the appropriate ITR form according to their sources of income, such as salary, house property, and other sources.
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Hindu Undivided Families (HUFs): HUFs generally use ITR-2 if they have income from multiple sources.
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Companies: Companies, whether private or public, have their own set of ITR forms, like ITR-6 or ITR-7, depending on their legal structure and income sources.
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Taxpayers using ITR-7 Form: Entities falling under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) are required to use Form ITR-7. This includes charitable trusts, political parties, educational institutions, and other similar entities.
Key Changes In The ITR-5 Form In AY 2022-23
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From the financial year 2021-22, you have to pay taxes on the received dividends.
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The Indian Government has increased the limit for businesses that require tax audits. If a business has total transactions up to Rs 10 crores and less than 5% of these transactions involve cash, they don't need a tax audit.
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If taxes are deducted from your cash withdrawals under Section 194N, you can't carry those deductions over to the next year. So, make sure to use these deductions within the same year for your tax calculations.
Structure of the ITR-5 Form
The ITR-5 Form is divided into two parts and several schedules. Below is a detailed overview of its structure.
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Part A: General information
This section includes personal information about the taxpayer, including name, address, PAN (Permanent Account Number), and more.
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Part A-BS: Balance Sheet
It reports the details related to the balance sheet, including assets and liabilities, as of the specified date.
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Part A-Manufacturing Account
Here in this section, details of the manufacturing account are included.
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Part A-Trading Account
Information about the trading account for the financial year.
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Part A-P&L: Profit and Loss Account
Includes information about income and expenses for the current financial year.
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Part A-OI: Other Information
Here in this section, details of the manufacturing account are included.
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Part A-QD: Quantitative Details
This section encompasses the quantitative details of various items.
Part B: This section calculates and reports the taxpayer’s total income and tax liability. Further, there are 31 schedules, sections, or categories within the form.
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Part B-TI: Computation of Total Income
Details of income, such as salary, house property, capital gains, business/profession income, and other sources.
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Part B-TTI: Tax Liability on Total Income
Calculation of tax liability and details of deductions and exemptions.
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Schedule CG: Capital Gains
Computation of income under the details of capital gains.
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Schedule OS: Income from Other Sources
Computation of income under the details of income from other sources
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Schedule CYLA: Set off of Current Year Losses
Information about setting off the current year's losses.
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Schedule BFLA: Brought Forward Losses of earlier years
Information about the setting off of unabsorbed losses brought forward from previous years.
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Schedule DPM: Depreciation of machinery and plant computation
Information about depreciation on plant and machinery under the Income Tax Act
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Schedule UD: Unabsorbed Depreciation
Information about unabsorbed depreciation.
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Schedule CFL: Carried-forward losses
Details of losses that are carried forward in future years.
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Schedule ICDS: Income Computation Disclosure Standards on Profit
Details related to ICDS.
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Schedule 80G: Donations entitled to deduction under section 80G
Information about donations eligible for deductions as per section 80G of the Income Tax Act.
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Schedule 80GGA: Donations for scientific research or rural development
Information about donations for scientific research or rural development is eligible for deductions.
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Schedule RA: Research associations' transactions on which tax is payable
If applicable, information about donations to research associations.
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Schedule 80IA: Deduction under section 80IA
Details about deductions under section 80IA.
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Schedule 80IB: Deduction under section 80IB
Details about deductions under section 80IB.
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Schedule IF: For partnership firms
Details of partnership firms in which the assessee is a partner.
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Schedule EI: Exempt Income
All the income information that is not included in the total income.
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Schedule PTI: Business trust or investment fund
Details of pass-through income from business trusts or investment funds under section 115UB, 115UA.
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Schedule AMT: Alternate Minimum Tax (AMT)
Calculation of Alternate Minimum Tax, payable u/s 115JC.
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Schedule HP: House Property
Details of income from house property.
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Schedule CG: Capital Gains
Computation of income under “Capital Gain” head.
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Schedule AMTC: Computation of tax credit under section 115JD
Information about tax credits, if applicable.
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Schedule BP: Business and Profession
Information about profit and gains from business or profession.
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Schedule DOA: Depreciation over other assets
Information about the computation of depreciation on other assets
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Schedule DCG: Deemed capital gains
Information about deemed capital gains upon the sale of depreciable assets.
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Schedule ESR: Expenditure over scientific research
Deduction under section 35 on the scientific research expenditure.
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Schedule DEP: Depreciation on all the assets
Summary of depreciation on all the assets.
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Schedule- 10AA: Deduction under section 10AA
Information about the computation of deductions under section 10AA
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Schedule 80IC / 80IE: Deduction’s computation u/s 80IE or 80IC
Computation of deduction under section 80IC/ 80-IE.
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Schedule 80P: Deductions under section 80P
Information about all the deductions under section 80P.
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Schedule TR: Summary of tax relief claimed for paid taxes
Details of tax relief claimed for taxes paid outside India.
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Schedule GST: turnover/gross receipt reported for GST
Details of Goods and Services Tax (GST) turnover/gross receipts.
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Schedule TPSA: Secondary adjustment to transfer price
Secondary adjustment to transfer price under section 92CE(2A).
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Tax Payments:
(i) Advance and self-assessment tax payment details.
(ii) Details of TDS (tax deducted at source)on income other than salary (16A, 16B, 16C)
(iii) TCS ( tax collected at source) details.
Due Dates for Filing ITR 5 Return
Following are the due dates for filing the ITR-5 Form.
How to File the ITR 5 Return?
Filing the ITR-5 form in India involves several steps, and you can choose from various methods, including online and offline.
Online Filing
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To file the ITR 5 Return, you first need to register on the Income Tax Department's e-filing portal (https://www.incometax.gov.in/)
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After logging in to your account, go to the "Download" section and select the relevant assessment year and form number, i.e., ITR-5.
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Open the downloaded ITR-5 form in a PDF utility or online tax preparation software like Karr Tax Ones. Then, fill out the form with accurate and complete information.
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Validate the form to check for errors or inconsistencies and generate its XML file.
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Log in to your e-filing account, navigate to the "Upload Return" section, and select the ITR-5 form. Here, you must upload the XML file generated in the previous step.
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Once you successfully upload the XML file, you need to verify the return. There are multiple methods available for verification, such as using Aadhaar OTP, EVC (Electronic Verification Code), or sending it by Speed Post to Post Bag No. 1, Electronic City Office, Bengaluru–560500 (Karnataka).
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Filing ITR-5 online involves using the Income Tax Department's e-filing portal, where entities can fill, download, and submit the form electronically. This online filing process for ITR-5 ensures convenience and ease in compliance for firms, LLPs, AOPs, and BOIs, simplifying the tax filing procedure. ITR-5 download is available on the official income tax e-filing portal, enabling these entities to access the necessary form for reporting their income. Knowing who can file ITR-5 and its applicability to firms, LLPs, AOPs, and BOIs helps these entities in accurately disclosing their financial particulars, fulfilling their tax responsibilities, and maintaining compliance with income tax regulations.
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Offline Filing
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For the offline filing of ITR-5, you can download the form via official Income Tax India website.
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Print the form and fill it out manually or you can for a bar-coded return as well.
Important Points To Note:
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Annexure or document such as TDS certificates should not be attached to the return form while filing ITR-5. If any such documents find enclosed with this return form, then it will be detached and returned to the person filing the return.
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It is necessary that the taxpayers match the taxes deducted/collected/paid with their Tax Credit Statement Form 26AS.
Why Choose Karr Tax for ITR-5 Form Filing?
●Experience and Expertise
At Karr Tax, we have a team of experienced tax professionals who are better equipped to handle various tax scenarios. You will get expert guidance throughout the filing process and assurance that your return is adhering to all the compliances with tax regulations. Also, tax laws and regulations change frequently in India. That’s why we always remain up-to-date with them to provide the best ITR-5 form filing services.
Data Security
Tax-related information contains sensitive and confidential data; that’s why we prioritize its security. We use robust data security measures and the latest encrypted technologies to protect your personal and financial information.
●Client Support
Our team of experts is available round the clock to solve all your queries and concerns. You can expect real-time assistance whenever you need it through multiple communication channels, such as phone, email, live chat, or dedicated client portals.
●Affordable & Convenient
Karr Tax online filing portal offers user-friendly interfaces and step-by-step guidance to simplify the tax filing process. Also, our ITR-5 filing services are affordable, but it doesn't mean we compromise on quality or accuracy. Our sole aim is to provide you with excellent services at the best price possible.
●Additional Services
Along with ITR-5, we offer several other services as well, such as GST return filing, TDS Return filings, TAN registrations, and many more. Moreover, you can visit our official website, i.e., https://www.karrtax.in/ to know more about our different services.
Frequently Asked Questions
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Who is required to file the ITR-5 form?
The ITR-5 form is filed by Partnership Firms including LLPs, Association of Persons, Body of Individuals, Artificial Juridical Persons, Estate of the deceased and insolvent, and Investment fund.
2.Is DSC required for ITR-5 return filing?
If your accounts are audited u/s 44AB, it is mandatory to verify them via DSC or digital signature otherwise it can be validated through Aadhar OTP of partner.
3. Can a salaried person file ITR 5?
No, this form is not filed by an individual salaried person. There are other forms like ITR-1,2 which they can file.
4. What are the consequences of not filing ITR 5 or filing it after the due date?
Failing to file ITR 5 or filing it after the due date may result in penalties and interest. You may also lose certain benefits and deductions under the Income Tax Act.
5. How can Karr Tax help you with ITR-5 filing?
Our tax professionals will help you with the actual preparation and submission of your ITR-5 electronically. Also, we’ll guide you on minimizing your tax liability by taking advantage of available deductions and exemptions.