ITR 5 vs ITR 7: A Detailed Overview

Farheen Mukadam
Jul 14
7 min read

For different taxpayers, the Income Tax Department requires them to file different ITR forms. Based on their revenue sources, an assessee should opt for the proper form. A certain class of taxpayers, such as a firm, LLP, AOP, etc., must file the ITR 5 Form. For particular entities such as businesses, associations of persons (AOPs), local governments, firms, companies, and artificial judicial persons claiming exemptions under different provisions of the Income Tax Act, ITR 7 is a specialised income tax return form. In this article, we will provide a detailed overview of ITR 5 and ITR 7 and highlight their applicability and tax filing procedures.

Eligibility to File ITR 5

Who Cannot File ITR 5

ITR 5 Filing Due Date

How to File ITR 5

ITR 5 Verification

Eligibility to File ITR 7

Who Cannot File ITR 7?

Who Cannot File ITR 7

ITR 7 Filing Due Date

How to File ITR 7

ITR 7 Verification

ITR 5 vs ITR 7: Key Differences

Conclusion

Frequently Asked Questions

Eligibility to File ITR 5

ITR 5 has to be filed by the following:

Firm
Limited Liability Partnership (LLP)
Association of Persons (AOP)
Body of Individuals (BOI)
Local Authority as per clause (vi) of Section 2(31)
Artificial Juridical Person (AJP) as per clause (vii) of Section 2(31)
Representative Assessee as per Section 160(1)(iii) or (iv)
Society registered under the Societies Registration Act, 1860 or under any other state law
Cooperative Society
Trust other than trusts eligible to file Form ITR 7
Estate of an Insolvent
Estate of Deceased Person
Business Trust as per Section 139(4E)
Investments Fund as per Section 139(4F)

However, this form is not to be used by anyone who is required to file the return of income under Section 139(4A), 139(4B), or 139(4D).

Who Cannot File ITR 5?

The following are not eligible to file ITR 5:

Individual assesses
Hindu Undivided Family (HUF)
Company
Taxpayers required to file ITR 7, under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E) or 139(4F)

ITR 5 Filing Due Date

The Income-Tax Act stipulates that accounts must be audited on October 31 of the assessment year.
The deadline for submitting the report in Form No. 3CEB is November 30 of the assessment year.
In other situations (when an audit of the finances is not required), the assessment year ends on September 15, 2025 (for FY 2024–25).

How to File ITR 5?

There are two ways to file the ITR-5 Form with the Income Tax Department: online and offline.

The form may be submitted offline by providing a bar-coded return or by submitting the return on paper. The acknowledgement slip that comes with the return form must be correctly completed when the return is filed on paper.
On the other hand, the online method allows you to file it by either sending the data in return electronically or by submitting the return verification in Return Form ITR V after submitting the return electronically with a digital signature.

The assessee must print two copies of the ITR-V Form in order to submit it online. Within 30 days of completing the return, one copy of the ITR-V, properly signed by the assessee, must be forwarded by regular mail to Post Bag No. 1, Electronic City Office, Bengaluru-560100 (Karnataka). As a record, the assessee should retain the other copy. Under section 44AB, a firm whose finances are subject to audit has to file their return electronically with a digital signature.

ITR 5 Verification

Complete the verification paperwork with the necessary information.
Anything that is not relevant should be struck out. Before submitting the return, ensure the verification has been signed.
Select the person's title or ability to sign the return.
Notably, anyone who makes a false statement on their return or in the schedules that go with it could face prosecution under section 277 of the Income-tax Act of 1961. If found guilty, they could face a harsh jail sentence and a fine.

Eligibility to File ITR 7

ITR 7 has to be filed by the following:

Every individual who receives income from property held in trust or from other legal obligations that are entirely or partially used for charity or religious purposes is obligated to make a return under section 139(4A).
If a political party's total revenue, excluding the provisions of section 139A, exceeds the maximum amount exempt from income tax, they must make a return under section 139(4B).
Every institution specifically listed in the provision that claims an exemption under section 10 must file a return under section 139(4C).
Colleges, universities, and scientific research institutions covered by section 35(1) must file returns under section 139(4D).

Who Cannot File ITR 7?

The ITR 7 Form for Income Tax Returns is not applicable to those who are not requesting exemptions under Section 139(4A), Section 139(4B), Section 139(4C), or Section 139(4D).

ITR 7 Filing Due Date

The ITR 7 filing deadline may change. The following is the usual deadline for submitting an ITR-7:

September 15, 2025, for taxpayers who are exempt from having their accounts audited (For FY 2024-25).
October 31st of the next financial year is the deadline for taxpayers, including businesses, who must have their accounts audited.

It's crucial to remember that these dates could alter depending on notifications from the Income Tax Department.

How to File ITR 7

The following methods are available for filing an ITR 7 income tax return with the income tax department:

By utilising the digital signing certificate to submit the returns electronically.
By sending the return's data and then filling out the ITR V Return Form with the return's verification.

The assessee must print ITR V Form copies after filing the return. A copy of the ITR V properly signed by the assessee should be sent by regular mail to Electronic City Office, Bag No. 1, Bengaluru, 560100 (Karnataka). The other copy should be retained by them for their records.

ITR 7 Verification

ITR 7 can be submitted online and validated in one of these ways:

Using a digital signature certificate, or DSC
Using the Electronic Verification Code (EVC) mode for authentication
OTP for Aadhaar

The ITR-V acknowledgment should be properly signed and sent to the official address: Centralized Processing Center, Income Tax Department, Bengaluru, 560500, Karnataka. A political party must, however, provide the return using a digital signature certificate (DSC). Anyone found guilty of making a false statement on their return or in the accompanying schedules faces prosecution under section 277 of the Income Tax Act of 1961, which carries a harsh prison sentence and a fine.

ITR 5 vs ITR 7: Key Differences

Feature	ITR-5	ITR-7
Applicable Entities	Firms, LLPs, AOPs, BOIs, AJPs, estates, trusts (business trusts), investment funds	Charitable/religious trusts, political parties, scientific research institutions, educational institutions, khadi/village industries
Relevant Income Types	Business income, capital gains, house property, lottery, foreign income, other sources	Income from charitable/religious activities, political activities, scientific research, education, exempt income
Sections	General entities with the exception of those filing ITR-7, excludes sections 139(4A), (4B), (4D) filers	Sections 139(4A), 139(4B), 139(4C), 139(4D)
Audit Requirement	Applicable if accounts audited under specified sections like 44AB	Applicable if audit required under relevant sections
Form Structure	Annexure-free, simple form for entities	Divided into Parts and multiple schedules for detailed reporting
Filing Mode	Online filing with digital verification or signed physical copy	Online filing with digital verification, no attachments needed
Penalty for Late Filing	Yes, under section 234F	Yes, as per applicable rules

Conclusion

To finish the income tax return filing procedure, taxpayers must fill out a variety of income tax return forms. These ITR forms are categorized according to the type of income. However, it can be difficult to choose the correct ITR form because each instance requires a different one. You can follow this guide to understand the difference between ITR 5 and ITR 7 and decide which one is applicable in your case.

Frequently Asked Questions

Is ITR 5 mandatory?

Yes, for companies that meet its eligibility requirements, ITR 5 is required. There could be fines for not filing.

What documents are required for ITR 5?

General information, balance sheet information, manufacturing and trade account information, profit and loss account information, and the calculation of total income and tax liability are all required on the ITR 5 form. No further documents must be included.

What is the last date for ITR 5?

ITR 5 must be filed by the general income tax return deadline, which is usually October 31 for firms that need an audit and September 30 for those that don't. However, the precise date each year can be found on the website of the Income Tax Department.

What is the tax rate for ITR 5?

According to the applicable tax legislation and the kind of entity, the tax rate for entities submitting ITR 5 varies. For instance, the applicable corporation tax rates apply to businesses and limited liability partnerships.

Can I file ITR 5 without DSC?

A Digital Signature Certificate (DSC) is not strictly required for all forms of verification; however, it is advised for electronic filing. The procedure is made simpler, though, by employing a DSC.

Should ITR 5 filing include balance sheet?

The reported balance sheet data should correspond to the audited balance sheet if the accounts were audited. It is not necessary to include activities that are not recorded in the books.

What is the penalty for late filing of ITR 5?

There will be a penalty under section 234F if the ITR 5 is not filed by the deadline. The timing of filing and the entity's overall revenue determine how much of a penalty is assessed.

Who should file ITR-7?

Any entity that claims exemptions under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act is entitled to file an ITR 7.

Can I file ITR 7 online?

Yes, you can use the official Income Tax Department website to file your ITR 7 online.

What documents are required for filing ITR 7?

Your bank statements, income information, TDS certificates, PAN card, Aadhar card, and other pertinent financial papers are required in order to file ITR 7.