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ITR 5 Form - An Overview of its Structure

The following is a breakdown of the different parts/schedules and their respective explanations:

- Part A-GEN: General information

- Part A-BS: Balance sheet as of the last day of the previous year

- Part A-Manufacturing Account: Manufacturing Account for the previous financial year

- Part A-Trading Account: Trading Account for the previous financial year

- Part A-P&L: Profit and Loss for the previous financial year

- Part A-OI: Other Information (optional for those not liable for audit under Section 44AB)

- Part A-QD: Quantitative Details (optional for those not liable for audit under Section 44AB)

The following schedules are essential for accurately computing income tax:

- Schedule HP: Calculates income under the House Property category.

- Schedule BP: Determines income under the Business or Profession category.

- Schedule DPM: Computes depreciation on Plant & Machinery as per the act.

- Schedule DOA: Calculates depreciation on other assets as according to the act.

- Schedule DEP: Provides a summary of depreciation on all assets as per the act.

- Schedule DCG: Determines deemed capital gains on the sale of depreciable assets.

- Schedule ESR: Helps in making deductions under Section 35.

- Schedule CG: Computes income under the Capital Gains category.

- Schedule OS: Calculates income under the Income from Other Sources category.

- Schedule CYLA: Income statement must be prepared after setting off the losses incurred in the current year.

- Schedule BFLA: Income statement must be prepared after setting off the unabsorbed losses carried forward from the previous year(s).

- Schedule CFL: This statement reflects the losses that will be carried forward to the future years.

- Schedule UD: This statement details the unabsorbed depreciation.

- Schedule ICDS: This schedule must be duly reviewed.

- Schedule 10AA: This schedule pertains to computing the deduction under Section 10AA and should be carefully prepared.

- Schedule 80G: The statement about donations that are entitled to deduction under Section 80G should be highlighted.

- Schedule RA: The statement of donations made to research associations, etc. that are entitled to deduction under Sections 35(1)(ii), 35(1)(iia), 35(1)(iii) or 35(2AA) should be thoroughly reviewed.

The following schedules are crucial for computing deductions and calculating taxes under different sections of the Income Tax Act:

- Schedule 80IA: For computing the deduction to be made under Section 80IA.

- Schedule 80IB: For computing the deduction under Section 80IB.

- Schedule 80IC/80IE: For computing the deduction under Section 80IC/80IE.

- Schedule 80P: For deductions under Section 80P.

- Schedule VIA: For deductions statement under Chapter VIA.

- Schedule AMT: For computing Alternate Minimum Tax under Section 115JC of the Income Tax Act.

- Schedule AMTC: For calculating tax credit under Section 115JD.

- Schedule SPI: For stating the income that arises to minor child/spouse/son’s wife or any other person or AOP that is to be included in the income of the assessee in Schedules HP, CG, OS.

- Schedule SI: For stating the income which is subject to chargeability at special tax rates.

- Schedule IF: For providing details of partnership firms in which the assessee is a partner.

- Schedule EI: Exempt Income Details

- Schedule PTI: Details of pass-through income from an investment fund or business trust under Section 115UA, 115UB

- Schedule FSI: Details of income that accrues or arises out of India

- Schedule TR: Details of any taxes that have been paid outside India

- Schedule FA: Details of any Foreign assets or income from a source outside India

- Schedule GST: Details of turnover/gross receipts reported for GST

- Part B-TI: Summary of total income and tax computation based on the income that is chargeable to tax

- Part B-TTI: Computing the tax liability on total income

Guidelines for filing ITR 5 Form

Make sure to use the appropriate notation for each situation:

- Write "NA" if an item is unsuitable  

- Use "Not Applicable" if the schedule does not apply

- "Nil" represents zero value figures

- Indicate negative amounts with a "-" preceding the figure, unless stated otherwise in the Form

- All figures should be rounded to the nearest rupee

- Round off the total income and payable tax figures to the nearest multiple of ten rupees.

Steps to Submit ITR 5 Form

The ITR 5 Form can be filed through two methods- online or offline.

·         Offline: For offline filing, the return can be furnished in a paper form or by using the bar-coded return. A proper filing of the return and an acknowledgment slip is essential in this case.

·         Online: Alternatively, the ITR 5 Form can also be filed online, with the return being furnished electronically using the Digital Signature Certificate.

        - To file income tax returns online, data must be transmitted electronically followed by verification in ITR V form.

        - Assessee must print and sign one copy of ITR V form and send it via ordinary post to

Post Bag No. 1,

Electronic City Office,

Bengaluru.

                - Assessee must keep the other copy for their own records

- It is important for firms with accounts liable to audit under Section 4AB must file returns electronically with digital signature.

Guidelines for completing the verification document

·         Kindly ensure that all mandatory sections are completed in the verification document. Please take care to delete any irrelevant sections. Before submitting the return, please ensure that the verification section has been signed.

·         Please indicate the designation or role of the person signing the return.

·         Please note that providing false information in the return or accompanying schedules could result in prosecution under Section 277 of the Income Tax Act, 1961. Such offences carry stringent penalties including imprisonment and fines.

E-file your audit reports

ELECTRONIC SUBMISSION OF AUDIT REPORT IS MANDATORY for the assessee under Sections 10 (23C) (v), 10 (23C) (vi), 10 (23C) (via), 10A, 10AA, 12 A (1) (b), 44AB, 44DA, 50B, 80 IA, 80 IB, 80 IC, 80 ID, 80 JJ AA, 80 LA, 92 E, 115 JB, or 115VW, and needs to be submitted before the date of filing the income tax returns.

Which individuals are qualified to submit the ITR 5 Form?

ITR 5 can be filed by the following entities:

- Bodies of Individuals

- Firms

- Artificial Judicial Persons (as defined in Section 2 (31) (vii))

- Local authorities (referred to in Section 160(1) (ii) or 160 (1) (iv))

- Business trusts (referred to in Section 139 (4E))

- Investment funds (referred to in Section 139 (4F))

- Limited Liability Partnerships

- Associations of Persons

- Cooperative Societies

- Societies registered under Societies Registration Act, 1860 or under any state law trust (excluding trusts eligible for ITR 7 Form Filing)

- Estate of the deceased person

Which individuals do not qualify for submitting Form ITR 5?

- Filing income tax returns is mandatory as per Section 139(4A) and 139(4D). ITR-5 form cannot be used by individuals falling under these sections.

THE DEADLINE for submitting ITR 5 Form for AY 2021 – 2022

The deadline for submitting the ITR 5 Form for Non-Audit Cases for AY 2021-2022 is July 31, 2021, whereas for Audit Cases, it is October 31, 2021.

Does the ITR 5 Form contain any annexures?

Please note the following important points regarding ITR 5 Form:

- ITR 5 Form does not require any annexures to be attached with the return form.

- All documents enclosed with the return will be returned back to the taxpayer.

- Taxpayers are advised to carefully verify their taxes deducted/collected/paid with Tax Credit Statement Form 26AS to ensure accuracy.

Revised changes to the ITR V form for the fiscal year 2021-2022

·         Documents required for recognition as a start-up by DPIIT and  declaration Details filled in Form-2

·         Information regarding partnership firms where an individual is a partner

·         Breakdown of donations made through cash or non-cash mode of payment, and

·         Disclosure of turnover and gross receipts reported for GST