ITR-5 Return
The ITR-5 (Income Tax Return-5) is used by various entities for filing income tax returns in India. This includes firms, association of persons (AOP), body of individuals (BOI), and local authorities. Here’s a detailed overview of the ITR-5 return
Who Should File ITR-5?
- Partnership Firms: Includes LLPs and traditional partnerships.
- Association of Persons (AOP): Group of individuals working together for a common goal.
- Body of Individuals (BOI): Similar to AOP but typically refers to groups without legal status.
- Local Authorities: Municipalities or other local government entities.
- Co-operative Societies: Organizations formed to meet the common economic, social, and cultural needs of members.
Key Features
- Taxable Income: Report income under different heads: salary, house property, business or profession, capital gains, and other sources.
- Deductions: Claim deductions under various sections (e.g., 80C, 80D) where applicable.
- Audit Requirement: If turnover exceeds specified limits, the entity must have its accounts audited and submit the audit report along with the return.
Structure of ITR-5
Part A: General Information
- Name, PAN, address, and other basic details.
Part B: Gross Total Income
- Calculation of income under various heads.
Part C: Deductions
- Claimed deductions under sections like 80C to 80U.
Part D: Tax Computation
- Calculate tax payable based on total income.
Part E: Verification
- Signature and verification of the return.
Filing Process
Collect Documents:
- Financial statements, partnership deed, previous years’ returns, bank statements, etc.
Online Filing:
- Log into the Income Tax e-filing portal.
- Select ITR-5 from the forms available for e-filing.
- Fill out the form, ensuring all sections are complete.
Verify and Submit:
- After completion, check for errors using the validation tool provided in the form.
- Submit the form electronically.
Post-Filing:
- Keep a copy of the submitted return and acknowledgment for your records.
- If e-verifying, follow the necessary steps immediately after submission.
Common Mistakes to Avoid
Incorrect Personal Details: Ensure PAN, name, and address are correct.
Incomplete Income Reporting: All sources of income must be reported accurately.
Ignoring Deductions: Maximize eligible deductions to reduce taxable income.
Missed Deadlines: Keep track of deadlines to avoid penalties.
Audit Requirements
- If the firm’s turnover exceeds ₹1 crore, an audit report must be submitted along with the ITR-5.
- For professionals, if gross receipts exceed ₹50 lakhs, an audit is required.
Important Deadlines
- Due Date: Generally, the return is due on July 31 for the assessment year.
- Audit Report Submission: If applicable, the audit report must be submitted by September 30.
Resources for Filing
- Income Tax Department Website: For downloading the form and instructions.
- Tax Consultants: Seeking help from professionals can ensure compliance and optimize deductions.
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