ITR-5 Form - Who Should File and How to File Online

• 31 October (Assessment Year): Applicable if the accounts are required to be audited under the Income Tax Act.

• 30 November (Assessment Year): Applicable if a transfer pricing report in Form 3CEB is required to be furnished.

• 15 September 2025 (for FY 2024-25): Applicable in cases where the accounts are not required to be audited.

Major Changes in the ITR-5 Form for AY 2025-26

The ITR-5 form for AY 2025-26 includes several updates aimed at improving transparency, compliance, and reporting accuracy for taxpayers.

• LEI Disclosure Requirement: Entities undertaking financial transactions of Rs. 50 crore or more during the year must disclose their Legal Entity Identifier (LEI).

• MSME Payment Reporting: Additional disclosures are required for payments made to Micro and Small Enterprises (MSEs), particularly for compliance with Section 43B(h).

• Expanded Schedule 80GGA Reporting: Separate reporting fields have been introduced for contributions made to research institutions, universities, and rural development programmes.

• Detailed Capital Gains Disclosure: Enhanced reporting requirements under Schedule CG, especially for non-resident taxation and transactions involving specified securities.

• Accounting and GST Reconciliation Details: Taxpayers must provide more information on changes in accounting policies, valuation methods, and GST-income tax turnover reconciliation.

• Enhanced Foreign Tax Credit Reporting: Additional disclosures have been introduced under Schedules TR and FA for claiming foreign tax credit in accordance with Rule 128.

• Start-up Deduction Compliance: Eligible start-ups claiming deductions under Section 80-IAC must furnish specific declaration details and registration identifiers.

• Return Filing Section Selection: A new dropdown field requires taxpayers to specify the applicable filing section, such as 139(1) or 139(4), with automatic validation based on filing dates.

• Updated Business Codes: Business activity codes have been revised to align with the NIC 2008 classification system and other statutory reporting frameworks.

• Improved Validation Checks: The offline and JSON utilities now include stronger validation mechanisms to help minimize filing errors.

Purpose of the ITR-5 Form

The ITR-5 form is used by various non-individual entities to file their income tax returns under the Income Tax Act.

• Partnership Firms

• Limited Liability Partnerships (LLPs)

• Associations of Persons (AOPs)

• Bodies of Individuals (BOIs)

• Artificial Juridical Persons (AJPs)

• Estates of Deceased Persons

• Estates of Insolvent Persons

• Business Trusts

• Investment Funds

Who Can File ITR-5?

ITR-5 is meant for specific entities and organizations that do not fall under the categories of individuals, HUFs, or companies.

• Partnership Firms

• Limited Liability Partnerships (LLPs)

• Association of Persons (AOPs)

• Body of Individuals (BOIs)

• Artificial Juridical Persons (AJPs) under Section 2(31)(vii)

• Local Authorities under Section 2(31)(vi)

• Representative Assessees referred to in Section 160(1)(iii) or (iv)

• Co-operative Societies

• Societies registered under the Societies Registration Act, 1860, or any applicable State law

• Trusts that are not eligible to file ITR-7

• Estates of Deceased Persons

• Estates of Insolvent Persons

• Business Trusts covered under Section 139(4E)

• Investment Funds covered under Section 139(4F)

Note: Taxpayers required to file returns under Sections 139(4A), 139(4B), or 139(4D) cannot use ITR-5.

Who Cannot File ITR-5?

Certain taxpayers and entities are not eligible to file ITR-5 and must use other applicable income tax return forms.

• Individuals

• Hindu Undivided Families (HUFs)

• Companies

• Taxpayers required to file ITR-7 under Sections 139(4A), 139(4B), 139(4C), 139(4D), 139(4E), or 139(4F).

Structure of the ITR-5 Form

The ITR-5 form is divided into multiple parts and schedules to capture financial, income, deduction, and tax-related information of eligible entities.

Part A: Basic and Financial Information

This section contains the taxpayer's general details and financial statements for the relevant financial year.

• General Information: Basic taxpayer and filing details.

• Balance Sheet (Part A-BS): Financial position as of 31 March 2025.

• Manufacturing Account: Manufacturing-related financial details for FY 2024-25.

• Trading Account: Trading activities and results for FY 2024-25.

• Profit & Loss Account (Part A-P&L): Income and expenditure details for the financial year.

• Other Information (Part A-OI): Additional disclosures required under the Income Tax Act.

• Quantitative Details (Part A-QD): Information relating to production, stock, and sales.

Key Schedules in ITR-5

The form contains 40 schedules covering income computation, deductions, tax calculations, and disclosures.

• Income Schedules: House Property (HP), Business Income (BP), Capital Gains (CG), Other Sources (OS), and Virtual Digital Assets (VDA).

• Depreciation Schedules: DPM, DOA, DEP, DCG, and UD for depreciation and capital gains calculations.

• Loss Adjustment Schedules: CYLA, BFLA, and CFL for set-off and carry-forward of losses.

• Deduction Schedules: 10AA, 80G, 80GGA, 80GGC, 80IAC, 80LA, 80IA, 80IB, 80IC/80IE, 80P, and VIA.

• Special Tax Schedules: AMT, AMTC, SI, TPSA, and 115TD.

• Foreign Income and Asset Schedules: FSI, TR, and FA.

• Partnership and Investment Reporting: IF and PTI schedules.

• Other Disclosure Schedules: ESR, ICDS, RA, GST, and Schedule 112A for specified equity transactions.

Part B: Income and Tax Computation

This section summarizes the taxpayer's income and tax liability.

• Part B-TI: Computation of total income.

• Part B-TTI: Computation of tax liability on total income.

Tax Payment Details

The form also requires details of taxes already paid or deducted.

• Advance Tax and Self-Assessment Tax Payments

• Tax Deducted at Source (TDS) on income other than salary

• Tax Collected at Source (TCS) details

Recommended Filing Sequence

To ensure accurate and hassle-free filing, the Income Tax Department recommends completing the form in the following order:

• Part A

• Schedules

• Part B
• Verification

Who should use the ITR 5 Form?

The ITR-5 Forms is to be used by firms, LLPs, Associations of Persons (AOPs), BOIs, Artificial Judicial Persons, Cooperative Societies, and Local Authorities.

Bear in mind that persons who are required to file returns under Sections 139(4A), 139(4B), 139(4C), or 139(4D) need not use this form.

Eligibility Criteria for ITR-5 Form

The ITR-5 Form is eligible for filing by the following individuals:

• Firm
• Limited Liability Partnership (LLP)
• Association of Persons (AOP)
• Body of Individuals (BOI)
• An artificial juridical individual directed to in section 2(31)(vii)

• Estate of deceased
• Estate of insolvent
• Business trust and investment fund
• Cooperative society
• Local authority

However, individuals who are required to file the return of income under sections 139(4A), 139(4B), 139(4C), or 139(4D) should refrain from using this form. If you need help deciding which ITR form to use, you can refer to our guide for assistance.

How to File ITR-5?

The ITR-5 form must be filed electronically through the Income Tax Department's e-Filing portal. Taxpayers can choose from the following filing methods.

• File Using a Digital Signature Certificate (DSC): Submit the return online with a valid digital signature.

• Submit Return and Verify Later: Upload the return electronically and complete verification through ITR-V or e-verification methods.  

Return Verification Process

After filing the return online, taxpayers must complete the verification process to validate their submission.

• Send Signed ITR-V: Mail the duly signed ITR-V to the designated Income Tax Processing Centre in Bengaluru.

• E-Verify the Return: Complete verification electronically using a Digital Signature Certificate (DSC) or other available e-verification options.  

Mandatory Digital Signature Requirement

Certain taxpayers are required to file ITR-5 using a digital signature.

• Audit Cases: Firms whose accounts are subject to audit under Section 44AB must compulsorily file the return using a digital signature.

No Supporting Documents Required

ITR-5 is an annexure-free return form, meaning no supporting documents need to be submitted along with the return.

• Do Not Attach Documents: TDS certificates and other supporting documents should not be attached while filing.

• Retain Documents for Records: Keep all relevant documents safely for future reference or verification.

• Verify Tax Credits: Cross-check TDS, TCS, and tax payments with Form 26AS before filing the return to avoid discrepancies.

Tax Payments:

• Advance Tax and Self-Assessment Tax: Details of advance tax payments and self-assessment tax are provided.

• Tax Deducted at Source (TDS): Information on TDS on income other than salary (e.g., 16A, 16B, 16C) is included.

• Tax Collected at Source (TCS): Details on tax collected at source for specific transactions are covered.

How to Complete the Verification Section?

The verification section confirms that the information provided in the return is true and correct. Ensure that all details are carefully reviewed before submitting the return.

• Provide Required Details: Fill in all the information requested in the verification section.

• Remove Inapplicable Options: Strike out or exclude any fields that do not apply to your case.

• Sign the Verification: Ensure the verification section is duly signed before filing the return.

• Specify Signing Capacity: Select the appropriate designation or capacity of the person signing the return.

Note

The information provided in return must be accurate and truthful.

• Avoid False Declarations: Furnishing incorrect information or making false statements in the return or schedules may attract prosecution under Section 277 of the Income-tax Act, 1961.

• Penalty for Non-Compliance: Conviction under this section may result in rigorous imprisonment, a monetary fine, or both.

How to File ITR-5?

The ITR-5 form must be filed electronically through the Income Tax Department's e-Filing portal. Taxpayers can choose from the following filing methods.

• File Using a Digital Signature Certificate (DSC): Submit the return online with a valid digital signature.

• Submit Return and Verify Later: Upload the return electronically and complete verification through ITR-V or e-verification methods.  

Return Verification Process

After filing the return online, taxpayers must complete the verification process to validate their submission.

• Send Signed ITR-V: Mail the duly signed ITR-V to the designated Income Tax Processing Centre in Bengaluru. 

• E-Verify the Return: Complete verification electronically using a Digital Signature Certificate (DSC) or other available e-verification options.

Mandatory Digital Signature Requirement

Certain taxpayers are required to file ITR-5 using a digital signature.

• Audit Cases: Firms whose accounts are subject to audit under Section 44AB must compulsorily file the return using a digital signature.

No Supporting Documents Required

ITR-5 is an annexure-free return form, meaning no supporting documents need to be submitted along with the return.

• Do Not Attach Documents: TDS certificates and other supporting documents should not be attached while filing.

• Retain Documents for Records: Keep all relevant documents safely for future reference or verification.

• Verify Tax Credits: Cross-check TDS, TCS, and tax payments with Form 26AS before filing the return to avoid discrepancies.

How to Complete the Verification Section? 

The verification section confirms that the information provided in the return is true and correct. Ensure that all details are carefully reviewed before submitting the return.

• Provide Required Details: Fill in all the information requested in the verification section.

• Remove Inapplicable Options: Strike out or exclude any fields that do not apply to your case.

• Sign the Verification: Ensure the verification section is duly signed before filing the return.

• Specify Signing Capacity: Select the appropriate designation or capacity of the person signing the return.

Note

The information provided in return must be accurate and truthful.

• Avoid False Declarations: Furnishing incorrect information or making false statements in the return or schedules may attract prosecution under Section 277 of the Income-tax Act, 1961.

• Penalty for Non-Compliance: Conviction under this section may result in rigorous imprisonment, a monetary fine, or both.