Start Business
Start Business
Registration & License
Registration & License
Trademark Filing
Trademark Filing
Goods & Service Tax
Goods & Service Tax
Income Tax
Income Tax
MCA Services
Tender Registration
Tender Registration
Others
ITR-5 Return Filing
We have Price Starting from Only ₹
Contact Us Or Call Now 
Best & Reasonable Plans
Smart solutions,fair prices - your success starts with the Innovative solutions, competitive pricing – your journey to success begins with the perfect balance for growth!
OVERVIEW
ITR-5 is the income tax return form designed for firms, LLPs (Limited Liability Partnerships), Associations of Persons (AOPs), Bodies of Individuals (BOIs), and other entities that do not fall under the category of individual taxpayers or companies. This form is used to report income from business, profession, capital gains, and other sources, ensuring compliance with tax regulations. It allows entities to claim deductions, exemptions, and set off losses, making tax filing more structured and efficient.
Key Features Of ITR-5 Return Filing
- • Designed for Business Entities : ITR-5 is specifically meant for firms, LLPs, AOPs, BOIs, and other associations, ensuring that they comply with income tax regulations.
- • Multiple Income Sources Allowed : Taxpayers can report various sources of income, including business profits, professional earnings, rental income, and capital gains.
- • Exemption and Deduction Benefits : Entities filing ITR-5 can claim deductions under different sections of the Income Tax Act, reducing taxable income and optimizing tax liability.
What is ITR-5?
ITR-5 is a specific income tax return form designed for business entities such as firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), and other non-individual taxpayers. It is not meant for individuals or companies but rather for groups and organizations that operate as separate legal entities.
This form enables such entities to report their income from multiple sources, including business or profession, capital gains, house property, and other sources. ITR-5 allows taxpayers to claim exemptions, deductions, and set off losses, helping them reduce their taxable income effectively. It also ensures compliance with tax laws and helps businesses maintain proper financial records.
Entities filing ITR-5 must maintain accurate financial details, including profit and loss statements, balance sheets, and tax computation statements. They also need to disclose information related to tax deductions under various sections of the Income Tax Act. Filing this return correctly is crucial to avoid penalties and ensure smooth financial operations.
Who Can File ITR-5?
Firms
Partnership firms, including those registered and unregistered under the Indian Partnership Act, can file ITR-5 to report their income, expenses, profits, and tax liabilities. These firms need to provide details of their financial transactions, profit-sharing ratios, and deductions claimed.
Limited Liability Partnerships (LLPs)
LLPs, which operate as a hybrid structure between partnerships and companies, must file ITR-5 to declare their business income, tax deductions, and other financial details. LLPs are required to comply with specific tax regulations, including tax audits if their turnover exceeds the prescribed limit.
Association of Persons (AOPs)
An AOP is a group of individuals or entities that come together for a common purpose but do not form a legal partnership or company. AOPs, including cooperative societies or joint ventures, must file ITR-5 to disclose their collective income and applicable tax liabilities.
Body of Individuals (BOIs)
BOIs consist of a group of individuals who receive income collectively but do not form a formal business structure. Since their income is taxed at slab rates, filing ITR-5 ensures proper tax compliance and reporting of their collective earnings.
Who Cannot File ITR-5?
Individual Taxpayers
ITR-5 is strictly for business entities, partnerships, and other associations. Individual taxpayers, including salaried employees, freelancers, and professionals, must file ITR-1, ITR-2, ITR-3, or ITR-4 based on their income sources.
Hindu Undivided Families (HUFs)
HUFs, which consist of a family unit earning income collectively, are required to file ITR-2 or ITR-3 instead of ITR-5. Since HUFs follow different tax treatment and deductions, they are excluded from filing ITR-5.
Companies Registered Under the Companies Act
Private Limited Companies, Public Limited Companies, One Person Companies (OPCs), and any other business entity registered under the Companies Act, 2013, are required to file ITR-6 or ITR-7, depending on their tax obligations. ITR-5 is not applicable for these entities.
Charitable and Religious Trusts Claiming Tax Exemption
Trusts, NGOs, and other charitable institutions that claim tax exemption under Section 11 and Section 12A of the Income Tax Act are required to file ITR-7, instead of ITR-5, as they follow a different tax framework.
Tax Deductions and Exemptions in ITR-5
Entities filing ITR-5, such as partnership firms, LLPs, AOPs, and BOIs, are eligible for various tax deductions and exemptions under the Income Tax Act, 1961, which help reduce their taxable income. One of the key deductions available is on business expenses incurred during operations, including salaries, rent, administrative costs, and interest on business loans. Depreciation on assets like machinery, buildings, and equipment also qualifies for tax benefits, allowing businesses to deduct a portion of the asset’s cost each year. Additionally, contributions made toward employee welfare schemes such as Provident Fund (PF), National Pension System (NPS), and Gratuity are considered deductible expenses.
Firms engaged in research and development can claim tax exemptions under Section 35, encouraging innovation and scientific advancements. Donations made to registered charitable organizations are also eligible for deductions under Section 80G, subject to conditions. Businesses operating in Special Economic Zones (SEZs) can avail of tax benefits under Section 10AA, which offers exemptions on export income. Moreover, startups recognized under the Startup India initiative enjoy tax holidays under Section 80-IAC, providing relief for the initial years of their operations. If a business incurs losses in a financial year, it can carry forward these losses for up to 8 years to offset future profits, minimizing tax liabilities in subsequent years.
By leveraging these deductions and exemptions, firms can optimize their tax burden while ensuring compliance with income tax regulations. Proper financial documentation and adherence to prescribed conditions are essential to claim these benefits successfully.
Silent Features
Applicable to firms, LLPs, AOPs, and BOIs
Covers income from business, profession, capital gains, and other sources
Mandatory e-filing for tax audit cases
No eligibility for individuals and HUFs
Allows claiming deductions and exemptions under various sections
Requires detailed financial disclosures
Advantages of Filing ITR-5
- Comprehensive Tax Reporting: Enables firms and LLPs to report multiple income sources accurately.
- Tax Saving Opportunities : Businesses can claim deductions on expenses, depreciation, and tax holidays.
- Loss Carry Forward Benefits: Allows carrying forward losses for up to 8 years to offset future profits.
- Enhanced Financial Transparency: Ensures businesses maintain clear financial records for compliance.
- E-Filing Convenience: Mandatory online filing for ease and accuracy in tax return submission.
- Legal Compliance: Helps entities avoid penalties by adhering to tax laws and regulations.
Documents Required
PAN Card
Aadhaar Card
Bank Statements
Form 16
Income Proofs
Form 26AS
Step-by-Step Guide For Income Tax Return (ITR) Filing
Here are 5 steps to complete your Income Tax Return (ITR) Filing
Step 1
Gather Required Documents
Step 2
Log in to the Income Tax Portal
Step 3
Select ITR-5 Form and Fill in Details
Step 4
Claim Deductions and Verify Tax Liability
Step 5
Verify and Submit Your ITR
Empowering Your Business to Stay Ahead
Ensuring excellence in every aspect of business operations
Helping businesses to stay ahead of the competition effectively
Providing expert guidance for long-term business growth
