ITR 5 Form: A Comprehensive Guide for Firms, LLPs, and More

I am pleased to announce that our blog series will continue to cover the fundamentals and significant areas of all the ITR forms. In today's post, we will take an in-depth look at the ITR 5 form.

Let's go through the eligibility criteria aligned with the ITR 5 form:

The ITR 5 Form applies to various entities, including Firms, LLPs, AOPs, BOIs, Artificial Juridical Persons, Cooperative societies, and Loc, as long as they are not required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D), which refers to entities such as Trusts, Political parties, Institutions, Colleges, and so on. However, the ITR 5 Form cannot be used by Individuals, HUFs, and Companies.

The form was divided into two parts and thirty-one schedules.

Unfolding the sequence for filling out parts and schedules:

The Income Tax Department has provided a recommended sequence for taxpayers to follow when filling out their income tax returns. The sequence includes starting with Part A, followed by the Schedules section, then moving on to Part B and Part C. Finally, the taxpayer should complete the Verification section to ensure that all the information provided in the return is accurate and true.

When filing taxes through Online ITR Filing, taxpayers have two options. They can either furnish the return electronically using a digital signature or transmit the data electronically and then submit the return verification in Return Form ITR V. After filing the return, taxpayers are required to print out two copies of the ITR V Form. One copy must be signed by the taxpayer and sent via ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy should be kept by the taxpayer as a record. This process ensures that taxpayers have a physical record of their tax return while also allowing for the convenience and efficiency of electronic filing.

Verification:

To complete the verification document, fill in all the necessary details and cross out any sections that do not apply. It is important to sign the document before submitting the return. The person signing the return should indicate their designation or capacity. It is essential to note that making a false statement in the return or accompanying schedules is a serious offense and may result in prosecution under section 277 of the Income-tax Act, 1961. If convicted, the individual may be subject to rigorous imprisonment and a fine.

For the assessment year 2023-24, the deadline for filing the ITR 5 form is 31st July 2023 for non-audit cases and 31st October 2023 for audit cases.

A list of relevant revisions and additions made to the ITR 5 form:

When filing the ITR 5 form, certain details regarding unlisted equity shares must be provided, including the name, company type, PAN, and investment movement during the financial year. Additionally, the form now includes a separate Schedule 112A, which calculates Long Term Capital Gains (LTCG) resulting from the sale of equity shares or units of a business trust subject to STT. The form also requires information on adjustments to transfer price as covered under Section 92CE(2A) and deduction claims made from April 1, 2020, until June 30, 2020. In AY 2019-20, several changes got introduced to the ITR 5 form, including information on recognition as a startup under the Department for Promotion of Industry and Internal Trade (DPIIT), details on the declaration filled in Form 2, partnership firm details, bifurcations of donations as per payment mode, and turnover/gross receipts as reported for GST. It is crucial to be aware of all such changes, either by consulting with a tax professional or researching online before filing the ITR 5 form.

Great news! You no longer must bear the burden of keeping track of important ITR due dates. I assure you that TaxBuddy will take care of all your tax compliance needs with our dedicated and customized plans.