Income Tax Slab in India
February 6, 2018
Form ITR 3 For FY 2017-18 & AY 2018-19
February 16, 2018

Income Tax Return Form ITR 5

Last Update Date : April 27, 2019
Estimated Read Time: 7 min

how to fill itr 5

Filing income tax return is not only mandatory, but it should also be a responsibility of each one of us as a citizen of the country. For filing the tax returns, it is very important to know which ITR form should one file according to his income and his profession. ITR 5 Form is one of the tax return forms that are to be used by specific parties.

What is ITR 5?

Form ITR 5 is an income tax return form that can be used by following people:

  • Firm
  • LLP – Limited Liability Partnership
  • AOP – Association of Persons
  • BOI – Body of Individuals
  • Artificial juridical person (section 2 (21)(vi)
  • Cooperative/registered society
  • Local Authority
  • Persons as per section 160(1)(iii)(iv)

Who is not eligible to file ITR 5 Form?

If a person is required to file tax return u/s 139(4A) or u/s 139(4B) or u/s 139(4C) or u/s 139(4D) or u/s 139(4F), he shall not use form ITR 5.
The form should not be used by people if they are:

  • An individual
  • Company
  • HUFs
  • And for whom ITR 7 is applicable

[ Read: Which ITR to File? ]

How to file ITR5 Form?

ITR 5 needs to be e-filed by persons:

  • Whose books of accounts are audited u/s 44AB. The verification must be completed by using digital signature
  • Whose books of accounts are not required to be audited u/s 44AB, then the verification can be done by:
    1. Digital signature
    2. Electronic Verification Code
    3. Using ITR-V – print and signed by principal contact and post to: Post Bag No. 1, Electronic City  Office, Bengaluru 560 500, Karnataka.

NOTE: ITR 5 must be filed electronically by individuals who need to furnish a report of audit u/s 10(23C) (iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E, 115JB or 115VW.

[ Read: Guide on Sending ITR-V to CPC Banglore ]

Filing ITR 5 with H&R Block

Filing your Business Income Tax Return using ITR-5 can be easily done by following these simple steps:

  • Fill in your details to request a call back
  • Once your personal expert contacts you, provide your personal details
  • Upload/Email your documents to the tax expert with your payment
  • Advice from tax advisor on enhancing all available deductions and expenses
  • Your personal expert will file your return availing of the maximum deductions and tax savings.

Focus on your business and let your tax expert take care of your income tax return filing with accuracy, ensuring you benefit by maximizing  your tax savings to keep more of your money in your pocket to develop your business.

Detailed Structure of ITR 5

The ITR form 5 has been divided into two parts and various schedules that the tax filer has to understand and fill appropriately.

ITR 5 Form FY 2017-18

Click image to download ITR 5 PDF format

Part A: Basic/ General Information

It has five sub-divisions as follows:

  • Part A-GEN: It mainly requires general information seeking identificatory and other relevant data.
  • Part A-BS: It seeks the balance sheet as on 31st March, every year.
  • Part A-P&L: It needs information regarding Profit and Loss account for that particular Financial Year.
  • Part A-OI: It seeks other information. This part is however optional in the case where it is not liable for auditing u/s 44AB.
  • Part A-QD: This part seeks information about the quantitative details of the goods traded. This part too is optional in a case not liable for auditing u/s 44AB.

Part B: This part seeks information of the total income and tax liability of the taxpayer.

It has two sub-divisions as given below:

  • Part B – TI: It requires the taxpayer to provide break-up of his income and computation of total income.
  • Part B – TTI: This section requires information on the total tax liability of the taxpayer.

[ Try our: Income Tax Calculator ]

Understanding each of the Schedules

Schedule – BABank account details
 Schedule-HP Calculation of income under the head Income from House Property
 Schedule-BP Calculation of income under the head “profit and gains from business or profession.”
 Schedule-DPM Calculation of depreciation on plant and machinery under the Income-tax Act
 Schedule DOA Calculation of Depreciation on other assets under the Income-tax Act
 Schedule DEP Summary of depreciation on all the assets under the Income-tax Act
 Schedule DCG Calculation of deemed capital gains on sale of depreciable assets
 Schedule ESR Deduction under section 35 (expenditure on scientific research)
 Schedule-CG Calculation of income under the head Capital gains
 Schedule-OS Calculation of income under the head Income from other sources
 Schedule-CYLA Statement of income after set off of current year’s losses
 Schedule-BFLA Statement of income after set off of unabsorbed loss brought forward from earlier years
 Schedule-CFL Statement of losses to be carried forward to future years
 Schedule-10A Calculation of deduction under section 10A
 Schedule-10AA Calculation of deduction under section 10AA
Schedule-10BCalculation of deduction under section 10B
Schedule-10BACalculation of deduction under section 10BA
Schedule-80GDetails of donation entitled for deduction under section 80G
Schedule-80IACalculation of deduction under section 80IA
Schedule-80IBCalculation of deduction under section 80IB
Schedule- 80IC/ 80-ID/ 80-IECalculation of deduction under section 80IC/ 80-ID/ 80-IE
Schedule-VIAStatement of deductions (from total income) under Chapter VIA
Schedule-SIStatement of income which is chargeable to tax at special rates
Schedule-EIStatement of Income not included in total income (exempt incomes)
Schedule-ITStatement of payment of advance tax and tax on self-assessment
Schedule-TDS2Statement of tax deducted at source on income other than salary
Schedule-TCSStatement of tax collected at source

Latest Changes in ITR Form 5 for AY 2018-19

Changes in ITR 5Details
Penalty for late filing of ITRA new field has been added where the late filers need to provide the details of late filing fees paid.
Capital gains as a result of transfer of unquoted sharesA new filed has been added for the taxpayers to provide information on unquoted shares in accordance with the amendment in the section 50CA of the Finance Act, 2017.
Reporting giftsA field has been added to report the amount taxable as gift.
Revised depreciation scheduleDepreciation schedule has been revised as per which, the highest rate of depreciation for any block cannot exceed 40%.
Claiming proportionate depreciationA new field has been added to report the claim of proportionate depreciation in the event of business reorganisation, i.e. demerger, amalgamation, etc.
Changes in Schedule PLSchedule PL has been modified for the taxpayers to provide GST related details
Credit of refund to foreign bank accountA field has been added where an NRI taxpayer can provide the details of a foreign bank account in which he wants the credit of the tax refund he wants to claim.
Reporting disallowance of expensesA new field has been added to report disallowance of expenses in case of TDS default.
Claiming credit of TDS deducted on the name of another personA new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.
Claiming relief under DTAAThe form now asks the taxpayer claiming relief as per DTAA to report more details like rate as per treaty, rate as per I-T Act and applicable rate etc.
Claiming exemption on capital gainsThe taxpayers now need to provide more details in the form if they are claiming capital gains exemption.
Reporting remission or cessation of trading liabilityNew forms require separate reporting of remission or cessation of trading liability in case of income from other sources.
Reporting GST payments and refundsNew columns have been introduced in the ITR forms to report the details of GST paid and refunded.

All these changes have been made by the tax department in the ITR form are aimed at making the assessment procedure online. Therefore, we can see that the department is seeking more and more information from the taxpayers to facilitate e-assessment.

Validation Rules of ITR Form 5

There are three categories of defect for which validation process is to be carried out at the e-filing or CPC end in ITR 5.

Let’s look at the categories of the defect and the action that is to be taken during the validation process:

Category of DefectAction to be taken
AReturn will not be allowed to be uploaded, and an error message will be displayed
BReturn data will be allowed to be uploaded, but the taxpayer will be notified of a possible defect present in the tax return u/s 139(9). Appropriate communications or notices will be issued from CPC Bengaluru.
CThe third party utility providers will be signalled about the unstable quality of the data, and they will be warned about the future prohibition of the utility.

Sequence of Filling ITR 5

This form needs to be filled up in a particular sequence. This sequence has to be as follows:

  • Part A: This is the first thing that you have to fill in the form. It requires general information to be filled by the tax filer.
  • Schedules: After filling in the basic information, tax filer needs to fill in the details of different schedules appropriately.
  • Part B: This part includes all the computation of the total income as well as the calculation of tax liability on the total income.
  • Part C
  • Verification: After filling out the parts and schedules of ITR 5, a verification declaration has to be duly signed and attached to the form along with the schedules.

If you still haven’t filed your Income Tax Return, you are at the right place. File your ITR 5 form with H&R Block to experience effective and hassle-free tax filing. Our tax experts will file your return for you while you sit back and concentrate on your work.

Not sure how to file your Business Tax Return? Let H&R Block help you file your taxes.
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CA Ankita Mathur
Ankita, a Big 4 alumna, is a tax expert at H&R Block (India) with vast experience in managing GST-related business services. An avid traveller, Ankita is a regular contributor to the CAclubindia and loves helping people understand about GST and helping companies be GST compliant.

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