Income tax returns – Form 5
ITR-5 Form can be used by Firms, Limited Liability Partnerships(LLPs), Association of persons(AOPs) and Body of Individuals(BOIs), Artificial Juridical Person, Cooperative society and Local authority, provided they are not required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) (i.e Trusts, Political party, Institutions, Colleges, etc)
Who can use ITR Form – 5?
- 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)
What is the structure of the ITR-5 Form?
The Form has been divided into two parts and several schedules:
- Part A: General information
- Part B: Outline of the total income and tax computation with respect to income chargeable to tax.
There are 30 schedules details of which are as under:
- Schedule-HP: Computation of income under the head Income from House Property
- Schedule-BP: Computation of income under the head “profit and gains from business or profession”
- Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act
- Schedule DOA: Computation 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: Computation of deemed capital gains on sale of depreciable assets
- Schedule ESR: Deduction under section 35 (expenditure on scientific research)
- Schedule-CG: Computation of income under the head Capital gains.
- Schedule-OS: Computation 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 –UD: Unabsorbed Depreciation
- Schedule- 10A: Computation of deduction under section 10A
- Schedule- 10AA: Computation of deduction under section 10AA
- Schedule- 80G: Details of donation entitled for deduction under section 80G
- Schedule- 80IA: Computation of deduction under section 80IA
- Schedule- 80IB: Computation of deduction under section 80IB
- Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
- Schedule-VIA: Statement of deductions (from total income) under Chapter VIA.
- Schedule –AMT: Computation of Alternate Minimum Tax payable under section 115JC
- Schedule AMTC: Computation of tax credit under section 115JD
- 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-TDS: Statement of tax deducted at source on income other than salary.
- Schedule-TCS: Statement of tax collected at source
- Schedule FSI: Details of income accruing or arising outside India
- Schedule TR: Details of Taxes paid outside India
- Schedule FA: Details of Foreign Assets
Mode of filing ITR 5
Taxpayers can use either online or offline option to submit the ITR 5 Form for the AY 2017-18 and all the taxpayers who are paying tax and earned an income more than 5 lakhs shall furnish their ITR by offline and online mode. It is mandatory to file the return electronically under the digital signature whose accounts are liable to audit under section 44AB.
When the returns filed by the online mode so the taxpayer should print out the two copies of ITR V Form and one copy of that form has duly signed by the taxpayer and send it to the Income Tax Department-CPC Office within 120 days of e-filing.
When the return filed by the offline mode so the acknowledgment slip provided by the Income Tax Department should be duly filled with the return form.
Common guidelines while filling ITR 5
- If any schedule is not applicable score across as “—NA—“
- Write “NA” against that item which is inapplicable
- Write “Nil” to denote nil figures.
- Write “-” before for a negative figure/ figure of loss
- All figures should be rounded off to the nearest one rupee
Sequence to fill ITR-5 Form
- Part A
- Part B
- Part C
Chances 1st April, 2018 (ITR 5 FY 2017-18 or AY 2018-2019)
- Late fee if IT returns not filled on time.
- The taxpayers now need to provide more details in the form if they are claiming capital gains exemption.
- New columns have been introduced in the ITR forms to report the details of GST paid and refunded
- A 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.
- A new field has been added to report disallowance of expenses in case of TDS default.
- Cess levied on your tax liability has been hiked by 1 per cent from the current 3 per cent to 4 per cent. ( For FY 2018-19)
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:
- Digital signature
- Electronic Verification Code
- Using ITR-V – print and signed by principal contact and post
Penalty on late filing of ITR:
- Starting from April 1, if you file your ITR post the deadline of July 31, 2018 (unless the tax department extends it), you will be liable to pay a maximum penalty of Rs.10K.
- w.e.f. assessment year 2018-19, if assesse failed to furnish return of income within due date as prescribed under section 139(1) then as per section 234F, he will be required to penalty of:
- 5000 if return is furnished on or before 31 December of assessment year.
- 10,000 in any other case.
- Total income of the person does not exceed Rs. 5 lakh then Rs. 1000.
- If Income is not taxable then NIL (Not required to pay penalty as per income tax provisions)