The income tax return filing process for FY 2024–2025 has officially begun with the issuance of the ITR-5 form for AY 2025–2026 by the CBDT.
More than merely a required task, filing your income tax return (ITR) can lead to a number of important advantages that can enhance your financial security and future prospects. For different taxpayers, the Income Tax Department has established a variety of forms. Depending on their revenue source, an assessee should select the proper form. ITR 5 is one such Income Tax Return (ITR) that is filed by a particular type of taxpayers, including firms, limited liability partnerships, AOPs, etc. We shall go into great detail regarding ITR-5 in this essay.
The income tax return filing process for FY 2024–2025 has officially begun with the issuance of the ITR-5 form for AY 2025–2026 by the CBDT. These papers must be used to declare any income received between April 1, 2024, and March 31, 2025.
What is ITR Form 5?
One of the income tax return forms that the Indian Income Tax Department issues is ITR Form 5. In order to obtain comprehensive information on the entity’s general details, balance sheet, manufacturing and trading accounts (if applicable), profit and loss account, and other financial information, the form is broken up into different sections and schedules. Schedules for calculating income under various headings, deductions, and tax obligations are also included.
Who is Eligible?
It is specifically designed for filing income tax returns by the following entities:
- Firms: This includes all types of partnership firms (both registered and unregistered) other than Limited Liability Partnerships (LLPs).
- Limited Liability Partnerships (LLPs)
- Association of Persons (AOPs)
- Body of Individuals (BOIs)
- Artificial Juridical Person (AJP)
- Estate of deceased person
- Estate of insolvent person
- Business trust
- Investment fund
- Co-operative societies
- Local authorities
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Documents Required for E-Filing ITR-5
For e-filing ITR Form 5, you are not required to attach any physical documents to the return. The Income Tax Department has made the process annexure-less.
However, you need to have the information from the following documents readily available to fill out the various parts and schedules of the form accurately:
Basic Information:
- PAN (Permanent Account Number) of the firm, LLP, AOP, BOI, etc.
- Aadhaar number (if applicable and available).
- Name and Address of the entity.
- LLPIN (Limited Liability Partnership Identification Number) if applicable.
- Date of formation/incorporation/commencement of business.
- Contact details: Phone numbers and email addresses.
- Details of representative assessee (if applicable).
Financial Information:
- Balance Sheet as on the last day of the financial year.
- Profit and Loss Account for the financial year.
- Manufacturing Account and Trading Account (if applicable).
- Details of Income from various sources
- Details of expenses and deductions claimed under various sections of the Income Tax Act.
- Details of investments made for claiming deductions (though proofs are not attached, you should have them for your records).
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Tax Payment Details:
- Details of Advance Tax paid (challan details).
- Details of Self-Assessment Tax paid (challan details).
- Details of Tax Deducted at Source (TDS): Form 16A, 16B, 16C. You should have these certificates to verify the TDS amounts.
- Details of Tax Collected at Source (TCS) (if applicable).
Other Relevant Information:
- Details of partners/members in case of a firm, AOP, or BOI, including their PAN, share percentage, and status.
- Information related to specific schedules if applicable to your entity.
- Legal Entity Identifier (LEI) details if applicable.
- Details about delayed payments to MSMEs (Micro, Small and Medium Enterprises) beyond the prescribed time limit.
- Information on contributions made to political parties
Major Changes in the ITR-5 Form for A.Y. 2025–26
With regard to the Financial Year 2024–2025, the Central Board of Direct Taxes (CBDT) has released the ITR forms for Assessment Year (A.Y.) 2025–2026.
- Capital Gains Split (Before/After 23rd July 2024): There will be a clear distinction between reporting capital gains from transactions made on or after July 23, 2024, and those made before to that date in Schedule CG (Capital Gains). This shift is the result of changes made to the Finance Act of 2024, which, with effect from that date, reduced holding durations and indexation advantages for specific capital assets and introduced new tax rates.
For a proper tax calculation, taxpayers must classify their capital gains according to these timeframes. For example, the rate for Long-Term Capital Gains (LTCG) under Sections 112 and 112A has been changed to 12.5% (for transfers made on or after July 23, 2024, without indexation). In a similar vein, transfers made on or after the designated date now have a 20% Short-Term Capital Gain (STCG) rate under Section 111A.
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- Capital Loss on Share Buyback (After 01.10.2024): To cover the capital loss from the share buyback, a special clause has been introduced. This loss will only be allowed, though, if the dividend income from the buyback is stated under the heading “Income from Other Sources.” Share buybacks that take place on or after October 1, 2024, are subject to this modification.
- Addition of Section 44BBC (Cruise Business): The form now includes a reference to the new Section 44BBC. This section presents a presumptive taxation method for non-resident operators’ income from operating ships used in cruise operations.
- TDS Section Code Reporting in Schedule-TDS: The precise section code under which the Tax Deducted at Source (TDS) has been withheld must now be reported using Schedule-TDS. The goal of this improvement is to make tracking and TDS amount reconciliation better.
Due Date for Filing ITR-5 Form
- For non-audit cases, the deadline is July 31, 2025
- In case of an audit, the deadline is October 31, 2025
- For businesses requiring transfer pricing reports, the due date prescribed is November 30, 2025
- In case of Revised/Belated return, the last date is on December 31, 2025
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Important Points to Remember While Filing :
- Don’t include any supporting documentation with the ITR Form 5, such as investment proofs or TDS certificates. Nonetheless, you should have this data on hand for your records and in case the Income Tax Department looks into it.
- To ensure accuracy, cross-check all tax deducted, collected, and paid information with your Form 26AS.
- Know the relevant deadline for AY 2025–2026 ITR Form 5 filing.
- To prevent mistakes when filing, make sure you follow the ITR form’s validation guidelines.
You can accurately and promptly file your ITR Form 5 by carefully filling out all the required information and using this checklist.
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