ITR-5 is the Income Tax Return form specifically designed for a wide range of entities in India, excluding individuals, Hindu Undivided Families (HUFs), and Companies. It’s a comprehensive form used to declare income from various sources, including business, profession, capital gains, house property, and other sources.
Who is Eligible to File ITR-5?
ITR-5 is used by the following assesses:
Firms
This includes both registered and unregistered partnership firms (excluding Limited Liability Partnerships, which have a separate ITR-6).
Limited Liability Partnerships (LLPs)
Despite being a hybrid structure, LLPs are also required to file ITR-5.
Association of Persons (AOPs)
Groups of individuals or entities coming together for a common purpose (other than companies or HUFs).
Body of Individuals (BOIs)
Similar to AOPs, but formed by individuals only, often for specific, limited purposes.
Artificial Juridical Person (AJP)
Entities like universities, idol, etc., which are not individuals, HUFs, companies, or local authorities.
Co-operative Societies
Including primary agricultural credit societies, co-operative banks, etc.
Local Authorities
Municipal corporations, panchayats, port trusts, etc.
Estate of Deceased Person
When the income of a deceased person’s estate needs to be assessed.
Estate of Insolvent
When the income of an insolvent person’s estate needs to be assessed.
Business Trust
Entities like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Investment Fund
As defined under the Income Tax Act.
Who Cannot File ITR-5?
You cannot file ITR-5 if you are:
- An Individual (use ITR-1, ITR-2, ITR-3, or ITR-4)
- A Hindu Undivided Family (HUF) (use ITR-1, ITR-2, ITR-3, or ITR-4)
- A Company (use ITR-6)
- A taxpayer required to file a return under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F). These sections typically relate to charitable/religious trusts, political parties, universities, business trusts, and investment funds that have specific reporting requirements under ITR-7.
Key Aspects of ITR-5
Comprehensive Reporting
ITR-5 is a detailed form that requires reporting of income from all heads:
- Profits and Gains from Business or Profession
- Income from House Property
- Capital Gains
- Income from Other Sources
Financial Statements
Entities filing ITR-5 (especially firms and LLPs) are required to furnish complete financial statements:
- Manufacturing Account (if applicable)
- Trading Account (if applicable)
- Profit & Loss Account
- Balance Sheet
- In some cases, quantitative details of goods (for manufacturing/trading concerns).
Audit Requirement
For many entities eligible to file ITR-5, an income tax audit under Section 44AB is often mandatory. This is required if:
- Business turnover exceeds ₹1 crore (or ₹10 crore if at least 95% of receipts/payments are digital).
- Professional gross receipts exceed ₹50 lakhs.
- The assessee declares profits lower than the presumptive rates (under 44AD/44ADA) and their total income exceeds the basic exemption limit.
Digital Signature
If the accounts are subject to audit under Section 44AB, e-filing of ITR-5 using a Digital Signature Certificate (DSC) is mandatory.
No Annexures
Similar to other ITR forms, ITR-5 is an “annexure-less” form. This means you do not need to attach any supporting documents (like audit reports, financial statements, or proofs of investments) with the return. However, you must keep all these documents ready for potential scrutiny or audit by the Income Tax Department.
Important Schedules and Parts in ITR-5
ITR-5 is structured into several parts and numerous schedules, including:
- Part A: General Information: Basic details of the assessee (PAN, name, address, date of formation, etc.) and filing status.
- Part A-BS: Balance Sheet as on March 31 of the financial year.
- Part A-P&L: Profit and Loss Account for the financial year.
- Part A-OI: Other Information (e.g., details of investments, certain expenses).
- Part A-QD: Quantitative Details (for manufacturing/trading concerns).
- Schedule HP: Computation of Income from House Property.
- Schedule BP: Computation of Income from Business or Profession (including details of presumptive income if applicable).
- Schedule DPM/DOA/DEP: Depreciation schedules for Plant & Machinery, Other Assets, and Summary of Depreciation.
- Schedule CG: Computation of Capital Gains (Short-Term and Long-Term).
- Schedule OS: Computation of Income from Other Sources.
- Schedule CYLA: Statement of income after setting off current year’s losses.
- Schedule BFLA: Statement of income after setting off brought forward losses.
- Schedule CFL: Statement of losses to be carried forward to future years.
- Schedule UD: Unabsorbed Depreciation.
- Schedule ICDS: Effect of Income Computation and Disclosure Standards on profit.
- Schedule 80G: Details of donations eligible for deduction.
- Schedule VIA: Statement of deductions under Chapter VI-A (e.g., 80C, 80D, 80G, 80TTA, etc.).
- Schedule AMT: Computation of Alternate Minimum Tax (AMT) payable under Section 115JC.
- Schedule AMTC: Computation of tax credit under Section 115JD.
- Schedule SI: Statement of income chargeable to tax at special rates.
- Schedule PTI: Pass-through income from business trusts or investment funds.
- Schedule FSI: Income from foreign sources.
- Schedule TR: Tax relief claimed on income taxed abroad.
- Schedule FA: Details of foreign assets.
- Schedule GST: Summary of turnover as per GST returns (to be reconciled with income declared).
- Schedule IT: Details of advance tax and self-assessment tax payments.
- Schedule TDS/TCS: Details of Tax Deducted at Source and Tax Collected at Source.
Due Dates for Filing ITR-5 for AY 2025-26 (FY 2024-25)
The due date for filing ITR-5 depends on whether the assessee’s accounts are required to be audited under the Income Tax Act.
For assessees whose accounts are NOT required to be audited
The due date for filing ITR-5 for Assessment Year 2025-26 (Financial Year 2024-25) has been extended to September 15, 2025. (Previously July 31, 2025).
For assessees whose accounts ARE required to be audited (under Section 44AB)
The due date is October 31, 2025.
For assessees involved in international/specified domestic transactions requiring a transfer pricing report (Form 3CEB)
The due date is November 30, 2025.
Penalties for Late Filing of ITR-5
Failing to file ITR-5 by the due date can result in penalties and other adverse consequences:
Late Filing Fee (Section 234F)
- If total income is up to ₹5 lakh: ₹1,000.
- If total income exceeds ₹5 lakh: ₹5,000 (if filed between the due date and December 31st of the assessment year).
- Note: The penalty amount can increase if filed after December 31st, as belated returns for FY 2024-25 can only be filed up to December 31, 2025.
Interest on Unpaid Tax (Section 234A)
Interest at 1% per month or part of a month on the unpaid tax amount, calculated from the original due date until the date of filing.
Loss of Carry Forward Benefits
Business losses (other than unabsorbed depreciation) and capital losses cannot be carried forward to future years if the return is not filed by the due date.
Prosecution
In cases of significant tax evasion or repeated defaults, prosecution under Section 276CC (imprisonment) can be initiated.
Delay in Refunds
Any tax refunds due will be delayed.
Given the complexity of ITR-5 and the underlying accounting and tax provisions, it is highly recommended that entities filing ITR-5 seek the our tax experts to ensure accurate and timely compliance.