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Step by Step Guide to file ITR-5 for AY 2024-2025


Step by Step Guide to file ITR-5 for AY 2024-2025

The Central Board of Direct Taxes (CBDT) issued the Guidelines for ITR 5 filing to help the taxpayers file the particulars in Income-tax Return Form-5 for the Assessment Year 2024-2025 relating to the Financial Year 2023-2024. You can file ITR-5 for AY  electronically with the Income Tax Department by uploading the details and verifying them digitally or by sending a signed physical copy for verification. The current article briefs the Guidelines for ITR-5 filing online for AY 2024-2025.

Know more about ITR-5 return filing.

What is ITR-5?

ITR-5 is an Income Tax Return form in India designed for entities other than individual taxpayers. This includes firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), estates of deceased or insolvent individuals, business trusts, investment funds, artificial juridical persons, and cooperative societies. Compared to other ITR forms, it caters to a wider range of entities and requires detailed financial information for accurate tax assessment.

ITR-5 for whom?

ITR 5 is an income tax return form in India specifically designed for a variety of entities, not individual taxpayers. Here’s a breakdown of ITR-5 for whom:

  • Business entities: This includes firms and Limited Liability Partnerships (LLPs).
  • Associations: This covers Association of Persons (AOPs) and Body of Individuals (BOIs).
  • Other entities: This includes Artificial Juridical Persons (AJPs), estates of deceased or insolvent individuals, Business Trusts, and Investment Funds.
  • Local authorities and cooperative societies: These are also required to file ITR 5.

There are some exceptions though. If you fall under sections 139(4A), 139(4B), 139(4C), or 139(4D) of the Income Tax Act, you won’t need to use ITR 5 .

Assessment Year for which this Return Form is applicable

The ITR-5 filing is applicable for the assessment year 2024-2025 only, that is, it relates to income earned during the Financial Year 2023-2019.

Eligibility Criteria to file ITR-5

The ITR-5 filing form for AY 2020-2021 is to be filed by the following persons:

  • The person being a firm
  •  Limited Liability Partnership (LLP)
  • Association of Persons (AOP)
  •  Body of Individuals (BOI)
  •  Artificial Juridical Person (AJP) referred to in clause (vii) of section 2(31) of the Income-tax Act
  • The local authority referred to in clause (vi) of section 2(31) of the Income-tax Act
  • Representative assessee referred to in section 160(1)(iii) or (iv) of Income-tax Act
  • Cooperative society
  • Society registered under Societies Registration Act, 1860 or under any other law of any State
  • Trust other than trusts eligible to file Form ITR-7
  • Estate of a deceased person
  • Estate of an insolvent
  • Business trust referred to in section 139(4E) of the Income-tax Act
  • Investments fund referred to in section 139(4F) of Income-tax Act

Non-Applicability of ITR-5 Form

A person who is required to file the income tax return under section 139(4A) or 139(4B) or 139(4D) is not applicable to use Form ITR-5.

Procedure for filing and verification of ITR-5

Here is the brief procedure for ITR-5 filing online,

  1. Visit the Income Tax Department’s e-filing portal: Go to Income Tax Department e-filing website.

  2. Login/Register: If you’re a new user, register using your PAN details. Existing users can log in with their credentials.

  3. Select ITR Form: On the dashboard, choose “Income Tax Return” and select “ITR-5” for the relevant Assessment Year (AY).

  4. Data Filling: The ITR-5 form consists of various sections. Carefully fill in the details for each section, including:

    • Part A: General Information: Enter basic details like PAN, assessment type, address, etc.
    • Schedules: Fill in separate schedules for income details (capital gains, business income, etc.), deductions claimed, tax calculations, and more. Refer to the ITR-5 instructions for details on each schedule.
    • Part B: Tax Computation: The system will auto-calculate your tax liability based on the information entered in the schedules.
  5. Verification: After filling all sections, you have two options for verification:

    • Digital Signature: This is the quickest method if you have a valid digital signature certificate.

    • Physical Verification (ITR-V): If you don’t have a digital signature, choose this option. The system will generate an ITR-V form after submitting the return data.

  6. ITR-V Verification (if chosen):

    • Print two copies of the ITR-V form.
    • Sign one copy and mail it to the address mentioned on the form (Centralized Processing Centre, Bengaluru).
    • Keep the other copy for your records.

The applicant is required to furnish the following details in the income tax return form-5 (ITR-5):

  • Part A: General Information
  • Audit Information
  • Nature of Business
  • Details of the Balance Sheet
  • Manufacturing Account Details
  • Trading Account Details
  • Details of the profit and loss account
  • Details of income from the business activity on a presumptive basis as per section 44AD
  • Details income from any professional activity on a presumptive basis as per section 44ADA
  • Details of income from the business of plying, hiring, or leasing of goods carriages on a presumptive basis as per section 44AE.
  • Quantitative details of books of accounts in respect of the business or profession
  • Details of speculative activity
  • Details of allowances & disallowances under Income Tax Act
  • Quantitative details of trading and manufacturing account
  • Details of Income from House Property
  • Computation of income from business or profession
  • Computation of depreciation admissible under the Income-tax Act
  • Computation of depreciation admissible under the Income-tax Act
  • Summary of depreciation admissible under the Income-tax Act
  • Summary of deemed short-term capital gains on the sale of depreciable assets
  • Details of expenditure on scientific research etc. referred to in section 35, expenditure on agricultural extension project referred to in section 35CCC and expenditure on skilled development project referred to in section 35CCD
  • Capital gains arising from sale/transfer of different types of capital assets
  • The scrip wise/unit wise detail of the sale of equity shares of a company, an equity-oriented fund, or a unit of a business trust on which STT is paid under section 112A
  •  Income from other sources
  • Details of Income after set-off of current year losses
  • Details of Income after Set off of Brought Forward Losses of earlier years
  • Details of Losses to be carried forward to future years
  • Unabsorbed depreciation and allowance under section 35(4) of Income-tax Act
  • Effect of Income Computation Disclosure Standards on profit
  • Deduction in respect of units located in Special Economic Zone
  • Details of donations entitled for deduction under section 80G of Income-tax Act
  • Details of donations for scientific research or rural development
  • Details of donations to research associations etc. [deduction under sections 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)]
  • Details of deduction under the sections 80-IA/ 80-IB/ 80-IC and 80-IE of Income-tax Act
  • Deductions under section 80P of Income-tax Act
  • Details of deduction claimed under various provisions of Chapter VI-A during the year
  • Computation of Alternate Minimum Tax payable under section 115JC of Income-tax Act
  • Computation of tax credit under section 115JD of Income-tax Act
  • Income chargeable to tax at special rates
  •  Information regarding partnership firms in which the applicant is a partner
  • Income details from business trust or investment fund as per section 115UA, 115UB of the income tax act
  • Details of tax on secondary adjustment as per section 92CE (2A) of the Income-tax act
  • Details of Exempt Income (Income not to be included in Total Income or not chargeable to tax)
  • Details of Income from outside India and tax relief
  • Summary of tax relief claimed for taxes paid outside India
  • Details of Foreign Assets and Income from any source outside India
  • Information regarding turnover/gross receipt reported for GST
  • Details of Investments
  • Details of payments of Advance Tax and Self-Assessment Tax
  • Details of Tax Deducted at Source of income
  • Details of Tax Collected at Source (TCS)
  • Quantitative details of trading and manufacturing account

Note: The ITR 5 online form should reach within 120 days from the date of e-filing the return

ITR 5 Online Form for AY 2024-2025

Here is the ITR-5 filing online form for AY 2024-2025 for

itr5 FORM

The confirmation of the receipt of ITR V (Income Tax Return Verification Form) at Centralized Processing Centre will be sent to the taxpayer through mail ID registered in the e-filing portal.

Due Dates for ITR 5 Filing

The common due date for filing ITR-5 depends on whether an audit of your business or entity’s accounts is mandatory under the Income Tax Act. If no audit is required, the due date is the earlier of July 31st of the assessment year or a date specified under the Income Tax Act. Businesses that must undergo an audit have an extended deadline until October 31st of the assessment year. Still, the ITR-5 is not activated on the income tax e-filing website.

Verification of Return for Audit

If the accounts are required to be audited under section- 44AB of the Income Tax Act, it is mandatory to verify the return electronically under digital signature.

If a taxpayer is required to furnish a report of audit under sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA(1), 80LA(1A) 92E, 115JB or 115JC of the Income-tax Act, he/she need to file the report electronically on or before the date of filing the return of income.

Filling out the ITR V- Income Tax Return Verification Form

After filing the ITR form – 2, the taxpayer needs to print out the Form ITRV- Income Tax Return and send it to Processing Centre, Income Tax Department, Bengaluru- 560500 (Karnataka) by ordinary post or speed post.

Please click on the official link Guidelines for ITR 5 filing online for AY 2020-2021 for reference.

Other ITR-related articles