Filing an income tax return is a duty and a requirement for all citizens of the nation. The Income Tax Return is the document on which an assessee fills out all his income and tax information and submits it to the Income Tax Department. ITR forms include Income Tax Return 1 Sahaj, Income Tax Return 2, Income Tax Return 3, Income Tax Return 4, Income Tax Return 5, Income Tax Return 6, and Income Tax Return 7. Every assessee should be aware of and select a suitable ITR form for submitting tax returns based on his income and occupation. Income Tax Return or ITR 5 Form is an Income Tax Return form that some particular parties must utilise.

What is ITR 5 Form?
 

This income tax return is intended for businesses, LLPs, the Association of Persons and Body of Individuals, Artificial Juridical Persons, the Estate of a Dead Person, the Estate of an Insolvent Person, Business Trust, and Investment Fund.

E- Filing Audit Reports
 

From AY 2013-14 onwards, if an assessee is required to provide an audit report under sections 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A, 10AA, 12A(1)(b), 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB.

Eligibility of Filing for ITR 5 Form
 

A person who is a firm, LLP, AOP, BOI, an artificial juridical person described in section 2(31)(vii), the estate of the dead, the estate of insolvent, business trust & investment fund, cooperative society, and local authority can use this form. However, a person who is obligated to file for an income tax return under sections 139(4A), 139(4B), 139(4C), or 139(4D) may not utilise this form.

Primary Alterations in the ITR 5 Form in AY 2021-2022
 

The primary alterations in the ITR 5 form are as follows:

• The ITR form has been updated to reflect the rise in the Tax Audit limit from 5 crores to Rs 10 crore, where cash transactions account for less than 5% of total transactions.
   
• Dividends received after AY 2021-22 are taxable in the hands of the receiver. The necessary adjustments are made in the ITR form.
   
• TDS deductions for cash withdrawals under Section 194N cannot be carried over to future years. The ITR-5 form has been updated in accordance with the modifications.

Primary Alterations in the ITR 5 Form in AY 2020-2021
 

The primary alterations in the ITR 5 form are as follows:

• The name, kind of firm, PAN, movement in amount, and investment throughout the fiscal year should be disclosed in the information on investments in unlisted equity shares.
• A separate schedule 112A for calculating long-term capital gains on the sale of STT-liable equity shares or units of a business trust.
• Section 92CE tax information on secondary adjustments to transfer price (2A).
• Details of tax deduction claims for investments, payments, or expenditures made between April 1, 2020, and June 30, 2020.

Primary Alterations in the ITR 5 Form in AY 2019-2020

The primary alterations in the ITR 5 form are as follows:

• Details about DPIIT's designation as a start-up.
• Form 2 contains the details of the declaration.
• Details about the partnership firms in which you are a partner.
• Donations are divided into cash and non-monetary modes of payment.
• For GST purposes, information on turnover/gross receipts is submitted.

Structure of the ITR 5 Form

Part A: General Information

Part A-BS: Balance Sheet as of March 31, 2019.

Part A: Manufacturing Account for the 2018-19 fiscal year

Part A: Trading Account for the 2018-19 fiscal year

Part A-P&L: Profit and Loss Statement for the Fiscal Year 2018-19

Part A-OI: Additional information

Part A-QD: Quantitative information

How to File ITR 5 Form?
 

This ITR 5 form filing must be submitted to the Income Tax Department online in the following ways:

• By submitting the return online and using a digital signature online
• By electronically transferring the data in return and then submitting the return verification in Return Form ITR-5

When filing the return online, the assessee should print two copies of the ITR-5 Form. One copy of the ITR-5, fully signed by the assessee, must be mailed to Post Bag No. 1, Electronic City Office, Bengaluru-560500 (Karnataka).

The assessee may keep the other copy for his records. A business whose finances are subject to audit under section 44AB shall submit the return electronically using a digital signature.

No Document is Required
 

When submitting the ITR-5 form, no documents (including TDS certificates) should be attached. All such papers will be separated from this Return Form and returned to the person submitting the return. It is recommended that taxpayers match the taxes deducted/collected/paid by or on their behalf with their Tax Credit Statement Form 26AS.

Filling Out the Verification Documents
 

• Fill out the verification document with the relevant information.
• Remove anything that isn't relevant. Before submitting the return, please check that the verification has been signed.
• Select the person signing the return's designation/capacity.
• It is to remember that anybody who makes an incorrect statement in the return or the supporting schedules will be prosecuted as per Section 277 of the Income-tax Act of 1961 and will be punished with harsh imprisonment and a fine if convicted.

31 Schedules of ITR 5 Form

• Schedule-HP: Income computation under the heading Income from House Property
• Schedule-BP: Income computation under the heading "profit and profits from business or profession.
• Schedule-DPM: Income Tax Act computation of depreciation on equipment and machinery
• Schedule DOA: Income Tax Act computation of depreciation on other assets
• Schedule DEP: A summary of all assets' depreciation under the Income-tax Act.
• Schedule DCG: Calculation of presumed capital gains on depreciable assets sold
• Schedule ESR: Section 35 Deduction (expenditure on scientific research)
• Schedule-CG: Income computation under the heading Capital gains.
• Schedule-OS: Income computation under the heading Income from other sources.
• Schedule-CYLA: Income statement after deducting current-year losses
• Schedule-BFLA: Income statement after deducting unabsorbed losses carried forward from previous years.
• Schedule- CFL: Loss statement to be carried over to future years.
• Unabsorbed Depreciation (UD) Schedule
• ICDS Schedule: Profit Impact of Income Calculation Disclosure Standards
• Schedule 10AA: Deduction computation under Section 10AA
• Schedule 80G: Information on donations eligible for a tax deduction under Section 80G.
• 80GGA Schedule: Donation details for scientific research or rural development
• Schedule- RA: Information on gifts to research organisations, etc.
• Schedule 80IA: Deduction computation under Section 80IA
• Schedule 80IB: Deduction computation under Section 80IB
• Schedule- 80IC/ 80-IE: Deduction computation under sections 80IC/ 80-IE.
• Schedule 80P: Section 80P deductions
• Schedule-VIA: Statement of Chapter VIA deductions (from total income).
• Schedule -AMT: Calculating the Alternative Minimum Tax due under Section 115JC.
• AMTC Schedule: Section 115JD Tax Credit Calculation
• Schedule-SI: Statement of income subject to special taxation.
• Schedule IF: Details about the partnership firms in which you are a partner.
• Schedule-EI: Income Statement Not Included in Total Income (exempt incomes)
• Schedule PTI: Income data from a company trust or investment fund as required by sections 115UA and 115UB
• Schedule TPSA: Section 92CE secondary adjustment to transfer price; 2A
• Schedule FSI: Data on income earned outside of India and tax benefits
• Schedule TR: Summary of tax benefits claimed for taxes paid outside of India
• Schedule FA: Information on foreign assets and income earned outside of India.
• GST Schedule: Information on turnover/gross receipts submitted for GST.
• Schedule DI: Schedule of tax-saving investments, deposits, or payments to be deducted or exempted from the extended period beginning 1 April 2020 and ending 30 June 2020.
• Part B - TI: Total Income Calculation
• Part B - TTI: Calculation of total income tax obligation
• Taxes paid:

1. Details of advance tax and self-assessment tax payment

2. Details of tax deducted at source on non-salary income (16A, 16B, 16C)

3. Source data collection details

Conclusion

Taxpayers must file Income Tax returns depending on the income produced during the fiscal year and the kind of company under which it falls. The Association of Persons, Limited Liability Partnerships, Body of Individuals, Estates of the deceased, Artificial judicial person, business trust, estates of the insolvent, business trust, and investment fund must ITR 5 Form filing.