Form ITR-5 – An Overview

Taxpayers in India are categorised based on their income sources, with specific return forms for each. Form ITR-5 applies to businesses, LLPs, artificial juridical persons, estates of insolvent/deceased, investment funds, business trusts, local authorities, and cooperative societies.

Additionally, representative assessees must file Form ITR-5 as per Section 160(1)(iii)(iv) of the Income Tax Act, 1961.

Structure of Form ITR-5

Form ITR-5 is divided into two main parts and several schedules:

• Part A: General Information
  • Part A-BS: Balance Sheet as on 31st March
  • Part A-Trading: Trading Account for the FY
  • Part A-Manufacturing: Manufacturing Account
  • Part A-P&L: Profit & Loss Statement
  • Part A-QD: Quantitative Details
  • Part A-OI: Other Information
• Schedules (Total 31)
  • Schedule HP: Income from House Property
  • Schedule BP: Profit/Gain from Business or Profession
  • Schedule DPM/DOA/DCG/DEP: Depreciation & Capital Gains
  • Schedule ESR: Deductions under Section 35 (Scientific Research)
  • Schedule CG: Capital Gains
  • Schedule OS: Other Income Sources
  • Schedule CYLA/CFL/BFLA/UD: Set-off and Carry-forward of losses
  • Schedule 10AA: Deductions under Section 10AA
  • Schedule ICDS: Impact of ICDS
  • Schedules 80G/RA/80GGA/80IA/80IB/80P/80IC/80IE/VIA: Various deductions claimed
  • Schedules AMT/AMTC: Alternate Minimum Tax computations
  • Schedule SI/EI: Special tax rates and exempt income
  • Schedule IF/PTI: Partnership & Pass-through income details
  • Schedule TR/ESI: Foreign tax relief and foreign income details
  • Schedule GST: Turnover reported under GST
  • Schedule FA: Foreign Assets details
• Part B
  • Part B-TI: Total Income Calculation
  • Part B-TTI: Tax Liability Calculation
• Tax Details
  • Tax paid (advance, self-assessment)
  • TDS/TCS credits from Form 16B, 16C, 26AS

How to File Form ITR-5

• File the form online using a digital signature, ensuring e-verification of the return.
• Alternatively, print two copies of the ITR-5 when filing online.
• Send one signed copy by ordinary post to the tax department.

No Attachments Required

No documents, including TDS certificates, should be attached when filing ITR-5. Any attached documents will be returned. Taxpayers must match their Form 26AS tax credit statement with the taxes deducted, collected, or paid on their behalf.

Key Changes in ITR-5 Form for AY 2025–26

• The tax audit limit remains at ₹10 crores if cash transactions do not exceed 5% of the total business transactions.
• Dividend income continues to be taxable in the hands of the recipients; the form has been updated accordingly.
• TDS deducted on cash withdrawals under Section 194N remains non-transferable to subsequent assessment years.
• The ITR-5 form has been revised to incorporate these updates for AY 2025–26.

Who Should Use Form ITR-5?

Form ITR-5 is meant for Companies, LLPs, Associations of Persons (AOPs), BOIs, artificial juridical persons, cooperative societies, and local authorities.

Eligibility for Filing Form ITR-5

• Firms
• LLPs (Limited Liability Partnerships)
• Local authorities as per Sections 160(1)(ii) or (iv)
• Associations of Persons (AOPs)
• Artificial juridical persons
• Cooperative societies
• Societies registered under the Societies Registration Act, 1860 or any state law (except those eligible for ITR-7)
• Estate of a deceased person
• Business trusts (Section 139(4E))
• Investment funds (Section 139(4F))

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