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ITR 5

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What is ITR 5 - Quick and Easy Guide

ITR-5 is a complex income tax return form for entities like firms, LLPs, AOPs, BOIs, artificial juridical persons, estates, investment funds and cooperative societies. It is used to declare income, deductions and tax liabilities. Due to the nature of these entities, they have to understand what is ITR 5 and enter more details in this form than individual tax returns. Thus, it is recommended to consult a reliable tax consultant before filling out the ITR-5 form.

What Is ITR 5 Filing Process?

You may fill out the ITR 5 Form via the Income Tax Department portal with a set of required documents.

Step 1:

Log into the portal, go to the ‘e-filing’ menu and then, to ‘Income Tax Returns.’ Select ITR 5 form filling.

Step 2:

This form has two parts (A and B) and 40 schedules. Part A is regarding your general information, balance sheet, manufacturing and trading account, profit and loss account, quantitative details and other information. Part B is about the computation of your business income.

Step 3:

The final part contains verification. You may sign the verification part using an EVC, digital signature or Aadhaar OTP. Sign the ITR-V Form in the case of offline form filling and send it to the Income Tax Department via post within 120 days of Filing ITR 5 income tax on the portal.

Step 4:

You will get a confirmation from the Centralised Process Centre (CPC) for the ITR-V on the email ID you used for registration. However, you must verify the return online if your accounts get audited or if you have to furnish the return under specific sections.

Documents for ITR 5 Income Tax Form Filling

No documents are required to file the ITR 5 income tax. You will get them back if you attach them to the ITR-5 or the Tax Credit Statement form. You have to fill out a document for verification after furnishing the correct details such as taxes paid, income details, audit information, your personal and contact details, filing status, debts and tax liability.

You may proceed to ITR-5 filing if you are ready with the required details.

What Is ITR 5 Applicability?

ITR 5 applicability applies to any entity other than individuals and HUFs that has a taxable income. Thus, the following entities can fill out the form:

Firms
Limited Liability Partnerships (LLPs)
Association of Persons (AOPs)
Body of Individuals (BOIs)
Artificial Juridical Persons (AJPs)
Estates of deceased individuals
Estates of insolvent individuals
Business trusts (according to Section 139(4E))
Investment funds (according to Section 139(4F))
Cooperative society
Representative assessee according to Section 160(1)(iii) or (iv)
Registered societies
Trusts other than those filing for ITR-7

Who Cannot Fill the ITR 5 Form

Company
HUFs
Individual taxpayers
Taxpayers falling under the category of ITR-7

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Final Words

ITR-5 is an income tax return form for entities like firms, LLPs, AOPs, BOIs and cooperative societies. It involves declaring income, deductions and tax liabilities. The filing process includes logging into the Income Tax Department portal, completing parts A and B and verifying the return using EVC, digital signature or Aadhaar OTP. No documents are required for submission but should be retained for verification. It is a complex form and missing deadlines, including those for the auditing process can land you in trouble. Thus, consulting the right tax consultant is recommended.

FAQs

Does ITR 5 Form Filing Require a Balance Sheet?

A balance sheet cannot be attached to the ITR 5 Form, but you have to use it for tallying the reported figures with the audited balance sheet.

What Is ITR 5 Utility?

ITR 5 Utility is a software application provided by the Income Tax Department to assist taxpayers in preparing and filing ITR-5. It automatically performs calculations based on the entered data and creates a JSON file to be uploaded to the income tax portal.

What If I Submit the Wrong Information While Filing ITR-5?

According to the Income Tax Act, of 1961, submitting wrong information will take you to court under Section 277. Further, the court will decide whether to put you behind bars or charge you a fine.

Who Is Not Eligible for ITR-5?

You are not eligible for ITR-5 if you have to file returns under the Sections 139(4D), 139(4C), 139(4B) and 139(4A).

How Can a Cooperative Society Claim Deductions Under ITR-5?

If a cooperative society is eligible to claim deductions under u/s 80P(2)(e), then the society should select the business code ‘23012’ in Part A of ITR-5. Further, the society should disclose the rental and taxable income.