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Step by step guide: How to file ITR-5 Form

Step by step guide: How to file ITR-5 Form

Wednesday April 29, 2020,

4 min Read

Income Tax Return (ITR) is a form in which taxpayers file details about their earned income and tax applicability to the income tax department. The department communicated with 7 different forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. Every taxpayer must file his or her ITR on or before the stated due date. The applicability of ITR forms varies on the taxpayer's source of income, the amount of income received and the group to which the taxpayer belongs, such as individual, HUF, firm, etc.

This tax return is intended for partnership firms, LLPs, AOPs (Personal Association) and BOIs (Personal Association), Artificial Juridical Individual (AJP), Deceased Assets, Insolvent Assets, Corporate Trust and Investment Fund etc.

Who is eligible to file the ITR-5 Form?

This form can be used by a person who is a firms, LLPs, AOP, BOI, the artificial juridical person referred to in section 2(31)(vii), deceased state, insolvent estate, corporate trust and investment fund, co-operative bank, co-operative society, and local authorities. A person who is required to file income returns in accordance with section 139(4A) or 139(4B) or 139(4C) or 139(4D) shall not use this form.

These are the taxpayers who are liable to file the ITR 5 form:

·        Firms

·        Local authorities

·        Society registered under Societies Registration Act, 1860 or under any other law of any state

·        Co-operative society including co-operative bank

·        Limited Liability Partnerships, i.e. LLPs

·        Body of Individuals, i.e. BOI

·        Association of Persons, i.e. AOP

·        Trust other than trusts eligible to file Form ITR-7

·        Estate of deceased

·        A business trust

·        Estate of insolvent

·        Investments fund referred to in section 139(4F)

·        Representative assessee who is defined in section 160(1)(iii) or (iv) of the Income Tax Act, 1961

·        Artificial Juridical Person as referred to in section 2(21)(vi) of the Income Tax Act, 1961 

ITR 5 shall include all income forms other than those provided for in Section 11 of the Indian Income Tax Act. The act laid down tax laws relating to religious or charitable purpose. These functions are not part of overall revenue in the case of ITR 5.

Who is not liable to file ITR-5 Form?

Below mentioned taxpayers/assessee are not liable to file ITR-5 Form: 

  • Individual taxpayers
  • Company
  • HUF
  • Persons who are required to file tax returns under section 139(4A), 139(4B), 139(4C), 139(4D), 139(4E) or 139(4F) i.e. in Form ITR 7

How Income Tax Return can be filed using ITR-5 Form?

Income Tax Return can be filed online in a simple and trouble-free manner using ITR 5 form. Find the step by step process:

Visit the Income Tax department e-filing website which is www.incometaxindiaefiling.gov.in 

  • If you wish to submit the verification electronically, transfer the data in the return form and digitally sign the document.
  • The signing of the document digitally is mandatory for the purpose of verifying the electronically filed ITR 5 form. 
  • The assessee should print two copies of the ITR-V form in case if the verification is not done electronically. Send one copy to Verification Address below: 
  • "Centralized Processing Centre, Income Tax Department, Bengaluru-560500 (Karnataka)’.
  • The assessee has to keep the other ITR-V copy for their personal record.
  • You are not required to attach any document during ITR-5 filing. Any such document including the TDS certificate would be returned to the same person. 
  • Under Section 44AB, audit liability makes it mandatory for assessee to file ITR- 5 electronically with a digital signature.

How do I complete the ITR-5 Form?

Sequence for filling out parts and schedules

The Income Tax Department advises assessments to follow the sequence mentioned below while completing the income tax return:

  • Part A – General, Balance Sheet, Manufacturing, Trading and Profit and Loss account, etc.
  • Applicable Schedules like Schedule S, Schedule HP, Schedule CG, Schedule OS, Schedule VIth A, etc.
  • Part B– TI &Part B – TTI(Computation part shall be auto filled by the software/utility and Bank Account Details, etc. shall be user input)
  • Schedule IT/Schedule TDS/Schedule TCS
  • Verification