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.
Form ITR 5 is an income tax return form that can be used by person being an AOL, LLPs, BOI, firm, artificial juridical person referred to in section 2(31)(vii), persons referred to in section 160(1)(iii) or (iv), registered societies, local authority and cooperative society.
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:
[ Read: Which ITR to File? ]
Taxpayers who earn more than Rs 5 lakh and pay taxes have to furnish their ITR by online and offline mode. To submit their ITR 5 form, taxpayers can use either offline option or the online one. For taxpayers whose accounts are liable to audit u/s 44AB, it is mandatory that the return is filed online under the digital signature.
Taxpayers can also file the ITR by transmitting the data in the tax return electronically and then submit the verification of the return in the ITR-V of the Return Form. However, in this case, the taxpayer has to print two copies of the ITR-V. One copy of the ITR-V has to be duly signed and sent by ordinary post to CPC Bengaluru while the other copy can be retained by the taxpayer to keep a record.
[ Read: Guide on Sending ITR-V to CPC Banglore ]
The ITR form 5 has been divided into two parts and various schedules that the tax filer has to understand and fill appropriately.
Part A: Basic/ General Information
It has five sub-divisions as follows:
Part B: Outline of the total income and calculation of tax about income that will be charged for tax.
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|Schedule – BA||Bank 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-10B||Calculation of deduction under section 10B|
|Schedule-10BA||Calculation of deduction under section 10BA|
|Schedule-80G||Details of donation entitled for deduction under section 80G|
|Schedule-80IA||Calculation of deduction under section 80IA|
|Schedule-80IB||Calculation of deduction under section 80IB|
|Schedule- 80IC/ 80-ID/ 80-IE||Calculation of deduction under section 80IC/ 80-ID/ 80-IE|
|Schedule-VIA||Statement of deductions (from total income) under Chapter VIA|
|Schedule-SI||Statement of income which is chargeable to tax at special rates|
|Schedule-EI||Statement of Income not included in total income (exempt incomes)|
|Schedule-IT||Statement of payment of advance tax and tax on self-assessment|
|Schedule-TDS2||Statement of tax deducted at source on income other than salary|
|Schedule-TCS||Statement of tax collected at source|
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 Defect||Action to be taken|
|A||Return will not be allowed to be uploaded, and an error message will be displayed|
|B||Return 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.|
|C||The 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.|
This form needs to be filed in a particular sequence. This sequence has to be as follows:
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.