ITR 5
Easily setup a sole proprietorship with registrations, LEDGERS and business bank account.
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- Fewer legal formalities than LLP.
- Associated with the GST and income tax departments.
- Full control over the business for the sole proprietor.
- No separate business tax filings.
- Easy to disassemble.
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ITR 5 Return
Easily setup a sole proprietorship with registrations, LEDGERS and business bank account.
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. If you are searching for itr 5 return filing near me, this guide will help you get started the right way.
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. The entire itr 5 return filing process is made easier through the department’s online platform or by using the official itr 5 utility.
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. This structure must be filled correctly to ensure a smooth itr 5 return submission.
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. Be sure to note the itr 5 return filing due date to avoid late fees or penalties.
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. Remember, keeping all financial data ready will help you submit your itr 5 return on time and avoid any issues with your itr 5 nil return (if applicable).
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
- Taxpayers who must file under Sections 139(4A), 139(4B), 139(4C), or 139(4D)
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 itr 5 return 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. Hence, it is always wise to be aware of the itr 5 due date, itr 5 return date, and itr 5 form last date. Consulting the right tax consultant is highly recommended.
Frequently Asked Questions
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. This tool is especially useful for timely itr 5 return filing.
What If I Submit the Wrong Information While Filing ITR-5?
According to the Income Tax Act, 1961, submitting wrong information can take you to court under Section 277. The court will decide whether to put you behind bars or charge you a fine. Hence, make sure to file your itr 5 return correctly and before the itr 5 release date.
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). You must also not be an individual, HUF, or company.
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 while ensuring timely itr 5 return filing before the itr 5 return filing due date.