The Income Tax Department has introduced various forms for different taxpayers. An assessee should choose the appropriate ITR form as per the source of income. One such Income Tax Return (ITR) is the ITR 5 Form. It is primarily designed for firms, Association of Persons (AOP), and Body of Individuals (BOI) who are not required to file their income tax returns as companies. In other words, it is meant for entities that do not have a corporate structure but still need to report their income and taxes to the Indian Income Tax Department.

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Who is eligible to file the ITR 5 Form?

The following entities can use the ITR 5 Form:

• Firm
• Limited Liability Partnership (LLP)
• Body of Individuals (BOI)
• Association of Persons (AOP)
• Estate of deceased individuals
• Artificial Juridical Person referred to in section 2(31)(vii)
• Business trusts and investment funds
• Estate of insolvent individuals
• Cooperative society
• Local authority

However, it’s important to note that a person who is required to file the return of income under sections 139(4A), 139(4C),139(4B), or 139(4D) shall not use this form.

Due Date for Filing ITR5 Form

The ITR 5 due date depends on whether the taxpayer’s accounts need to be audited under the Income-Tax Act and whether they must furnish a report in Form No. 3CEB. Here are the different ITR 5 due dates:

• When accounts are to be audited under the Income-Tax Act: The due date for filing ITR-5, in this case, is 31st October of the assessment year.
• When a report in Form No. 3CEB is to be furnished: If the taxpayer is needed to furnish a report in Form No. 3CEB, the due date for filing ITR5 is 30th November of the assessment year.
• In other cases (where accounts need not be audited): For taxpayers where accounts do not need to be audited under the Income-Tax Act, the ITR 5 due dates is 31st July of the assessment year.

Who Cannot File the ITR 5 form?

The ITR 5 form is not meant for the following categories of taxpayers:

• Individual assesses: Individuals should use the appropriate ITR form based on their sources of income. For example, most individual taxpayers use ITR-1, ITR-2, or other forms as applicable.
• Hindu Undivided Family (HUF): HUFs must also use the relevant ITR form based on their income sources. Typically, they use ITR-2 or other applicable forms.
• Company: Companies have their own set of ITR forms, such as ITR-6, for companies other than those claiming exemption under section 11.
• Taxpayers who using Form ITR-7: Individuals or entities falling under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F) are required to use Form ITR-7 for filing their income tax returns. These sections cover charitable trusts, political parties, educational institutions, etc.

No Documents Required

It’s important to note that there is no requirement to attach documents with the ITR 5 income tax form.

Structure of the ITR5 Form

The ITR5 Form is structured into several parts and schedules to facilitate the comprehensive reporting of income, deductions, and tax liability. Below is an overview of the structure of the ITR5 Form:

Part A: General Information

This section gathers essential information about the taxpayer, such as name, PAN (Permanent Account Number), address, and contact details.

Part A-BS: Balance Sheet

This part is dedicated to reporting the entity’s financial position with a balance sheet as of the specified date.

Part A-Manufacturing Account

Here, details related to the manufacturing account for the fiscal year are recorded.

Part A-Trading Account

This section captures information regarding the trading account for the fiscal year.

Part A and L: Profit and Loss Account

Here, you report the profit and loss account for the financial year.

Part A-OI: Other information

This section covers additional financial information relevant to the taxpayer’s income.

Part A-QD: Quantitative details

Quantitative details related to various aspects of income are provided here.

Part B

Part B is a pivotal section where taxpayers calculate and report their total income and tax liability.

Schedules

The ITR 5 income tax form in India includes 31 schedules, sections, or categories within the form. These schedules capture details and computations related to the taxpayer’s income and tax obligations. They cover various aspects, such as income from different sources, deductions, depreciation calculations, capital gains, and foreign income. Taxpayers must fill out these schedules as applicable to their financial situation to provide a comprehensive picture of their income and tax liability when filing their income tax returns. Each schedule serves a unique purpose in organizing and reporting financial information to the Indian Income Tax Department.

Part B – TI: Computation of Total Income

In this section, the taxpayer calculates their total income based on the information provided in the schedules.

Part B – TTI: Computation of Tax Liability on Total Income

This part focuses on determining the tax liability based on the computed total income.

Tax Payments:

This section includes details of payments made towards advance tax and self-assessment tax.

• It also includes details of tax deducted at source on income other than salary (16A, 16B, 16C).
• Additionally, it captures details of tax collected at the source.
• Sequence for Filling Out Parts and Schedules:

The Income Tax Department recommends taxpayers follow the following sequence while filling out the income tax return:

• Part A
• Schedules
• Part B
• Verification