ITR-5 Form: Eligibility, Structure, and Filing Guide for AY 2025-26
The Income Tax Department of India has designated different Income Tax Return (ITR) forms based on the nature of income and the type of taxpayer. One such form is ITR-5, intended specifically for firms, LLPs, AOPs, and other entities not eligible to file ITR-7. In this article, we break down everything you need to know about ITR-5 Form, including eligibility, structure, key changes for AY 2025-26, and step-by-step filing instructions.
What is ITR-5 Form?
ITR-5 is an income tax return form meant for entities such as:
- Firms
- Limited Liability Partnerships (LLPs)
- Associations of Persons (AOPs)
- Bodies of Individuals (BOIs)
- Artificial Juridical Persons (AJPs)
- Estates of deceased or insolvent persons
- Business trusts
- Investment funds
- Local authorities
- Certain representative assessees
- Societies and cooperatives
ITR-5 is not applicable for individuals, HUFs, companies, or taxpayers who need to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) (who should instead file ITR-7).
Who Can File ITR-5?
You can file ITR-5 if you are:
- A Firm
- A Limited Liability Partnership (LLP)
- An Association of Persons (AOP)
- A Body of Individuals (BOI)
- An Artificial Juridical Person (AJP) under Section 2(31)(vii)
- A Local Authority under Section 2(31)(vi)
- A Representative Assessee under Section 160(1)(iii) or (iv)
- A Cooperative Society
- A Registered Society (under Societies Registration Act, 1860 or similar laws)
- A Trust (except those required to file ITR-7)
- Estate of Deceased or Insolvent
- Business Trust under Section 139(4E)
- Investment Fund under Section 139(4F)
Note: You cannot use ITR-5 if your income falls under Sections 139(4A to 4D)—these typically apply to religious, political, or scientific institutions.
Key Changes in ITR-5 for AY 2025–26:
The Income Tax Department has made several important updates to the ITR-5 form for AY 2025–26:
- Legal Entity Identifier (LEI): Mandatory disclosure of LEI for entities conducting financial transactions of ₹50 crore or more.
- Section 43B(h) Compliance: Detailed disclosures required for payments to Micro and Small Enterprises, ensuring compliance with the new clause introduced under Section 43B(h).
- Refined Schedule 80GGA: Segregated reporting for donations made towards:
- Research Institutions
- Rural Development Programs
- Universities
- Capital Gains (Schedule CG): Additional fields introduced, especially for non-residents and specified securities.
- Enhanced Audit Reporting: Reporting of changes in accounting policies, valuation methods, and GST–Income Tax reconciliation in Schedule Part A–OI and Audit.
- Foreign Tax Credit (FTC): Updated Schedule TR and FA to align with Rule 128 for foreign income tax credits.
- Startup Deduction (Section 80-IAC): Startups must provide:
- Declaration of eligibility
- Registration ID to claim deduction under Section 80-IAC
- Section Dropdown for Filing: Clear dropdown for return section (e.g., 139(1), 139(4)) based on due dates and conditions.
- Updated Business Codes: Business codes realigned with NIC 2008 classification to ensure consistency with GST and MCA filings.
- Improved JSON/Offline Utility: Enhanced validation checks in the utility to reduce submission errors.
Structure of ITR-5 Form:
The ITR-5 Form is detailed and comprehensive. It is organized into two parts and 40 schedules:
Part A:
- General Information
- Balance Sheet (Part A-BS)
- Manufacturing Account
- Trading Account
- Profit & Loss (P&L)
- Other Information (Part A–OI)
- Quantitative Details (Part A–QD)
Part B:
- Part B–TI: Total income calculation
- Part B–TTI: Tax liability calculation
Schedules – Includes:
- Income heads (House Property, Business, Capital Gains, Other Sources)
- Depreciation (DPM, DOA, DEP)
- Deductions (80IA, 80IB, 80IC, 80G, 80GGA, 80LA, etc.)
- Alternate Minimum Tax (AMT/AMTC)
- Income from virtual digital assets (VDA)
- Foreign Assets and Tax Relief (FA, TR, FSI)
- Exempt Income (EI)
- Pass-through Income (PTI)
- GST turnover (Schedule GST)
- Others like ICDS, TDS, TCS, RA, etc.
Filing Tip – The Income Tax Department recommends filing in this sequence:
- Part A
- Schedules
- Part B
- Verification
How to File ITR-5 Form Online?
You can file ITR-5 through the Income Tax e-Filing Portal using these methods:
Two Filing Options:
- Electronically with Digital Signature (DSC)
- Electronically without DSC, followed by submission of: ITR-V (Verification Form) via:
- E-verification
- Signed ITR-V by post to:
- CPC, Post Bag No.1, Electronic City Office, Bengaluru – 560500
Note:
- Audit cases under Section 44AB: Mandatory filing with DSC
- No need to attach any supporting documents like TDS certificates or audit reports (unless e-filing audit report separately)
Due Dates for Filing ITR-5 for AY 2025–26:
Who Cannot File ITR-5?
The following taxpayers should not use ITR-5:
- Individuals
- Hindu Undivided Families (HUFs)
- Companies
- Taxpayers eligible for ITR-7 (like charitable/religious trusts, political parties, etc.)
How to Fill the Verification Section?
- Fill out the verification statement truthfully.
- Strike off the inapplicable options.
- Mention your name, designation/capacity, and sign the return.
- Any false statement may lead to prosecution under Section 277, which can result in imprisonment and fines.
Final Notes:
- ITR-5 is a detailed form and is typically used by entities with complex tax reporting requirements.
- Ensure accurate data entry, and consult a tax professional in case of audit applicability, foreign income, or complex deductions.
- Always verify TDS/TCS/advance tax credits with Form 26AS before final submission.
Disclaimer: This article is for informational and educational purposes only. It does not constitute legal or financial advice. Please consult a tax expert or chartered accountant for personalized assistance.
