ITR 5 Form: What it is & How to File?

What is the ITR5 Form?

Wondering 'What is ITR-5, and who should file it?' Let's answer the above question in simple terms.

ITR5 form is a type of income tax form that is specifically tailored for a category of taxpayers like Body of Individuals or BOI, Limited Liability Partnerships or LLPs, Business Trusts, Association of Persons or AOPs, and more.^¹

Also, it is important to note that companies, individuals, or HFUs and those who file their returns under the new ITR7 are not supposed to fill out this ITR5 form. In addition to this any person who files a return of income tax under sections 139(4A) or 139(4B) or 139(4C), or 139(4D) cannot use ITR-5 form. Hence, knowing what ITR 5 is helps in accurately filling taxes.

Who is Eligible to File the ITR5 Form?

Now, one of the most important questions while choosing an ITR 5 form is, who is it for? Who are the eligible candidates? Well, here are some taxpayers who may file ITR 5 form:¹

• AOP or Association of Persons
• AJP or Artificial Juridical Person
• Firms
• Estate of Insolvent
• LLPs or Limited Liability Partnerships
• Business Trusts and Investment Funds
• BOI or Body of Individuals
• Estate of Deceased
• Trusts expect trusts eligible for filing ITR7
• Cooperative Societies
• Society registered under Society Registration Act, 1960
• Local Authorities states in clause (vi), section 2(31)
• Business Trusts stated in section 139(4E)
   

Who is not Eligible to File the ITR5 Form?

Here is a list of people who cannot file or are non-eligible to file the ITR5 form.^¹

• Company
• Hindu Undivided Families or HUF
• Individual Assessees
• Taxpayers who are already filing under ITR7
   

How to Fill Your ITR5 Online?

If you follow the correct steps in the correct order, electronically filing your ITR-5 could be simple. Here is a simple guide to assist you:

• You can file returns through ITR -5 in two ways - Electronically using a digital signature or send an electronic return and submit its verification using ITR-V.
• If submitting via ITR-V, keep a copy for your records and mail the signed form to Post Bag No. 1, Electronic City Office, Bengaluru-560500 by speed post¹.
• Fill out the form in the order listed below:
  Section A
  Schedules
  
  Section B
  Verification.
• Please do not include any supporting documentation with the form; if you do, it will be separated and returned.

To avoid last-minute errors, server lag, and penalties, submit your ITR-5 well in advance of the deadline.

Important Updates to the ITR-5 Form for AY 2024-25

Businesses, LLPs, AOPs, BOIs, cooperative societies, business trusts, and investment funds are all eligible to use the ITR-5 form. It does not include individuals, companies, HUFs, or those who submit an ITR-7 under sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), 139(4F) of the Income Tax Act, 1961 . A clear comprehension of what is ITR 5, and its amendments for the FY 2024–2025 is imperative for proper compliance. Important Changes to the ITR-5 Form for 2024–2025 are:

• As per the amended holding period limits, 12 months for listed assets and 24 months for other assets², taxpayers have to report capital gains separately before and after July 23, 2024¹.
• TDS Section Code Disclosure: ITR-5 form now mandates the disclosure of the right TDS section numbers to enhance credit accuracy and reduce mismatches.
• Improved disclosure rules: The ITR-5 form now demands detailed compliance declarations for companies whose financial transactions are more than ₹50 crores during the financial year, to adhere to tighter monitoring.
• As part of compliance with Section 43B(h) of the Income Tax Act, taxpayers are mandated to give detailed disclosures of payments made to micro and small enterprises.
• Further fields to differentiate donations to research institutes, universities, and rural developments are now part of Schedule 80GGA.
• Reporting capital gains under Schedule CG is now more detailed, particularly in non-resident taxation and certain assets.
• Alterations to accounting processes, valuation procedures, and reconciliation of turnover under GST and income tax in Schedule Part A-OI and Audit need to be disclosed in detail.
• More disclosures in Schedules TR and FA for claims under Rule 128 overseas tax credits.
• Startups eligible under Section 80-IAC need to submit the declaration information and registration IDs to become eligible for the deduction.
• 'Return Filed Under Section' Drop-down, which applies date-based auto-adjustment logic to indicate clearly in which section (139(1), 139(4), etc.) the return is being filed.
• The NIC 2008 classification has been incorporated in the new business codes, maintaining consistency with other statutory reporting requirements such as MCA and GST.
• To reduce submission errors, the offline/JSON utility has strengthened its built-in validation checks.

All these improvements have enhanced the ITR-5 form to be more structured and comprehensible, in addition to ensuring that non-corporate organizations meet the newest compliance criteria for the financial year 2024–2025.

Basic Structure of ITR5 Form?

Now that you know what the ITR5 form is, its eligibility criteria, and more, let's move forward. To ensure you fill out the form properly, it is better to understand its basic structure.

Well, the ITR5 form is generally classified into three parts, Part A and Part B, with 40 schedules. The following table gives us the details about it:

Sequence for Filing: Part A → Schedules → Part B → Verification

How to complete document verification for ITR-5?

Document verification of the ITR-5 form is the last but most crucial step in authenticating your income tax return. Without timely verification, the income tax return is deemed invalid. Taxpayers have the option to complete the process either online (e-verification) or offline(physical). Here are different ways for verification of ITR-5:

• OTP on the mobile number which is registered with Aadhaar
• EVC generated through your pre-validated bank account
• EVC generated through your pre-validated demat account
• EVC through ATM (offline method)
• Net Banking
• Digital Signature Certificate (DSC).

Early completion ensures the validity of the ITR-5 form, prevents penalties, and authenticates the process of filing taxes.

Tax Calculation Under ITR 5

To calculate tax under ITR 5 form you would have to fill the form correctly. Here’s how -

• Input of entity details and financial statements in Part A; choosing income sources (business/profession, residential house property, capital gains, and other income)
• Deductions to calculate total income in Part B
• Thirdly, automatic calculation of tax liability, considering advance tax, TDS, and available deductions.
   

Due Date for Filling ITR5 Form FY 2024-25 (AY 2025-26)

As per the Income Tax Act, the ITR 5 form should be filed within the set time limits. The deadlines vary depending on the category of case:

Taxpayers can prevent penalties, late charges, and interest on delayed taxes by filing the ITR 5 Form on time. Further, timely compliance ensures smooth processing of returns and, if eligible, faster refunds.

What are the Key considerations for Filling ITR5 Form?

While filing the ITR 5 form, taxpayers should be mindful of the following points to achieve correctness, compliance, and timely filing:

• Check Eligibility: Make sure you are a firm, LLP, AOP, BOI, cooperative society, or trust that can file using the ITR 5 form.
• Select the Correct Form: Filing with the wrong form can lead to defective return notices or delayed processing.
• Have financial records handy: Gather documents like Form 26AS, Form 16/16A (TDS), profit and loss accounts, balance sheets, depreciation schedules, and capital gains/other income information.
• Report Income Accurately: Complete the schedules for business/profession, residential house property, capital gains, other sources, and exempt income accurately.
• Claim Deductions Properly: Verify that deductions under Chapter VI-A (like Sections 80G, 80IAC, 80P) are accompanied by proper proof.
• Follow Timelines: To escape penalty, file within the prescribed timeline (audit, non-audit, or Form 3CEB cases).
• E-Verification: Perform e-verification to verify your filing and allow the return to be processed correctly.
   

Common Mistakes to Avoid While Filing ITR 5 Form

When completing the ITR 5 form, taxpayers need to be careful and avoid common mistakes that could lead to penalties, defective returns, or delays in processing. The following are a few common mistakes to avoid:

• Wrong Form/Assessment Year - Choosing the wrong ITR form or year could render your return invalid.
• Avoid pre-filled fields. Not cross-verifying income facts with Form 26AS or AIS could lead to mismatches and tax notices.
• Incomplete Disclosure of Income - Not filing exempt income, capital gains, or income from various employers could lead to compliance issues.
• Bank or PAN number errors. Errors in account numbers could lead to the failure of refunds.
• Claiming deductions with non-existent supporting documents could lead to an audit.
• Without e-verification within the time, the ITR 5 form becomes invalid.

By refraining from these mistakes, taxpayers can ensure hassle-free processing, a timely refund, and effortless compliance with the Income Tax Department.

Key Takeaways

• The ITR 5 form is meant for organisations such as LLPs, AOPs, BOIs, cooperative societies, and trusts, which ensure proper compliance.
• Understanding what is ITR 5 form is essential because improper filing within the incorrect category can result in defective returns, a penalty, or rejection, so it is best to verify eligibility first.
• The ITR5 form can be accessed online through the e-filing portal with the filing option to submit through DSC, Aadhaar OTP, net banking, or ITR-V submission for appropriate verification and adherence.
• Taxpayers submitting the ITR 5 form are required to prepare balance sheets, profit and loss accounts, depreciation schedules, and disclosures, reporting the capital gains, deductions, and exempt income accurately as per compliance regulations.
• On-time filing of ITR 5 form enables hassle-free processing, immediate refunds, and escapes penalty—
• Accurate filing of what ITR 5 is and support schedules guarantees tax compliance and the possible deductions
   

Conclusion

Filing your tax returns on your own can seem overwhelming at the start. Therefore, you need to understand different types of ITR forms, their significance, and their purpose. By being aware of who these ITR forms are for, who is eligible, what is the procedure for their online filing, and more, you ensure to properly file your tax returns easily and in an informed manner.

Additionally, you should keep an eye out if there have been any changes in these forms. By filing your returns on time and in the correct manner, you avoid the chances of penalties and maintain legal adherence. Thinking of filing your ITR5, keep this guide in handy to ensure you do everything smoothly.

FAQs

1. What is the meaning of the ITR5 form?

   ITR5 can be simply understood as a type of IT return form that is designed for entities like Association of Persons, Limited Liability Partnerships, Body of Individuals, etc.¹

   
   

2. Do you need to have any other documents while filing the ITR5 form?

   No, you do not need to attach any other documents when filing your income tax returns using the ITR5 form. In fact, in cases where an individual attaches any additional documents, the same will be detached and returned back to the filing individual.1

   
   

3. Is e-filing of the ITR 5 Form mandatory?

   Yes, e-filing of the ITR 5 form is compulsory for eligible entities. Knowing what the ITR 5 form is? It ensures compliance, easy processing, and quick refunds, and aligns them with the discipline in a compounding calculator.

   
   

4. Do I need to include the balance sheet while filing ITR 5?

   Yes, organisations submitting the ITR 5 form have to provide a balance sheet, profit and loss account etc.

   
   

5. What happens if my accounts are audited but I miss the ITR 5 filing deadline?

   Late submission of the ITR 5 Form could attract a penalty, interest, and delayed refunds, breaching rules of compliance.

   
   

6. What is the penalty for filing the ITR 5 Form late?

   Late submission of the ITR 5 form incurs a penalty of up to ₹5,000 if the income exceeds Rs. 5 lakh, along with interest on tax not paid.³

   
   

7. Which types of entities are eligible to file ITR 5?

   Entities like LLPs, AOPs, BOIs, cooperative societies, and trusts must file the ITR 5 form.

   
   

8. Can I revise the ITR 5 Form after it has been filed?

   Yes, the ITR 5 form can be updated before the end of the assessment year. Timely corrections facilitate compliance and refunds, consistent with systematic planning in term insurance tax plans.

   
   

9. Is ITR-5 an annexure-free form?

   Yes, the ITR 5 form entails being annexure-free, i.e., no documents are required to be attached while filing.

   
   

10. How to income tax return form 5 download?

    The download of the income tax return form 5 is accessible on the official e-filing website. Being aware of what ITR 5 is ensures proper filing.

    
    

Sources:

1. https://tax2win.in/guide/itr5
2. https://www.newindianexpress.com/business/2025/May/15/key-changes-in-itr-5-form-for-assessment-year-2025-26
3. https://economictimes.indiatimes.com/wealth/tax/itr-can-still-be-filed-after-september-16-2025-with-payment-of-late-fee-and-losing-some-benefits/articleshow/123881368.cms?from=mdr