What is ITR 5 & How to File It?
Submission of income tax returns is an important requirement in India. ITR 5 is related to Companies, Limited Liability Partnerships, and Associations of Persons. The Income Tax Return Form 5 is meant to furnish their income from business, profession, capital gains, and other sources. In this guide, we will take you through the procedure of filing an ITR-5, its applicability, and due dates.
Who Can File ITR-5?
ITR-5 can be used by entities other than individual taxpayers. These include
Business Entities: Firms and LLPs.
Associations: AOPs and BOIs.
Other organizations: Artificial Juridical Persons (AJPs), insolvent persons, Business Trusts, and investment funds.
Local Authorities and Cooperative Societies: They, too, are to file ITR-5.
Eligibility Criteria
The following entities can file ITR 5
- Firms
- LLPs
- AOPs
- BOIs
- AJPs
- Local Authorities
- Cooperative Societies
- Estates of deceased or insolvent persons
- Business Trusts
- Investment Funds.
Step-by-Step Filing Process
Registration and Login
Go to the Income Tax Department’s e-filing portal
Register or Login: If you are a new user, register with your PAN details. Registered users can log in with their credentials.
Select ITR Form
On the dashboard, select “Income Tax Return” and choose “ITR-5” for the corresponding Assessment Year 2024-2025
Fill in the Details
Part A: General Information
- Input basic details such as PAN, assessment type, address, etc.
- Give information regarding the nature of the business and date of incorporation.
- Schedules:
- For complete income details (capital gains, business income, etc.), deductions, and tax computation.
- Give details of the balance sheet, manufacturing account, trading account, and profit and loss account for the year.
- Specify income from house property, business or profession, and other sources.
Part B: Tax Computation
The system shall automatically make your tax liability from the information filled in the schedules.
- Verification
- Electronic Verification
- If your accounts are liable to be audited under Section 44AB, you have to verify the return with a digital signature.
Physical Verification:
- Take a print of two copies of the ITR-V form.
- Sign one copy and post it to the Centralised Processing Centre, Bengaluru.
- Retain the other copy for reference.
Due Dates for Filing ITR-5
- Non-Audit Cases: The last dateforf filing ITR-5 is 31st July of the assessment year.
- Audit Cases: The last date is 31st October of the assessment year.
Common Mistakes to be Avoided
- While submitting ITR-5, it is important to avoid making common mistakes:
- Incorrect Form Choice: Use the right ITR form for your entity.
Incorrect Personal Information
- Check your k PAN, Aadhaar, and address information to confirm they are the same as mentioned in your PAN.
- Omitting Income: Report all income sources, such as tax-exempt income.
- Failure to E-Verify: Verify the process to prevent penalty.
Guidelines To Deal with Taxation Needs
The most vital schedules in ITR-5 are the ones that deal with essential areas of income, deductions, and taxation calculations. These are some of the essential schedules:
Schedule HP: This schedule is utilized for reporting income from house property. It incorporates statements like rental income and pass-through income.
Schedule BP: This schedule is used for calculation of income from business or profession. It takes into account income from business, speculative business, and specified business under Section 35AD.
Schedule DPM: This schedule is related to the depreciation of plant and machinery. It is used by businesses employing machinery and equipment.
Schedule DOA: This is for depreciation on assets other than plant and machinery. It takes into account different fixed assets under the Income Tax Act.
Schedule CG: This schedule is for reporting short-term and long-term capital gains. It contains income from the disposition of assets and deductions allowed on capital gains.
Schedule OS: This schedule is for reporting income from other sources, including interest, dividends, or lottery winnings.
Schedule ICDS
This schedule gives information regarding the effect of Income Computation Disclosure Standards (ICDS) on profits. It includes accounting policies, inventory valuation, and other financial adjustments.
Schedule AMT
This schedule calculates Alternate Minimum Tax (AMT) under Section 115JC, which is applicable to entities having high economic presence but low tax incidence.
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Filing the file properly and within time is crucial for people to remain in line with tax laws. By adhering to this step-by-step process, you can have a smooth experience. Always check your information thoroughly and seek professional help if necessary. It can guarantee compliance with current tax laws and regulations. Reach out to TaxDunia to seek professional help.
