Udyog Suvidha Kendra
AY 2026-27 Compliant

ITR-5 Filing for
Firms & LLPs

The designated income tax return form for Firms, LLPs, AOPs, BOIs, and Investment Funds. Ensure 100% compliance with accurate tax filing.

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Introduction to ITR-5 Form

The ITR-5 Form is a return of income that must be filed by firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), artificial juridical persons, and other entities except individuals, HUFs, companies, and those filing ITR-7. It is specifically designed for entities that are not required to file their return under any other ITR form. ITR-5 is used to report income, claim tax deductions, and disclose other financial particulars as per the Income Tax Act, 1961.

What is ITR-5 Form?

The ITR-5 Form is a return of income that must be filed by firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), artificial juridical persons, and other entities except individuals, HUFs, companies, and those filing ITR-7. It is specifically designed for entities that are not required to file their return under any other ITR form. ITR-5 is used to report income, claim tax deductions, and disclose other financial particulars as per the Income Tax Act, 1961.

Who Should File ITR-5?

  • Firms (registered or unregistered)
  • LLPs (Limited Liability Partnerships)
  • AOPs (Association of Persons) & BOIs (Body of Individuals)
  • Artificial Juridical Persons & Local Authorities
  • Estate of deceased or insolvent

These entities must file ITR-5 if their income exceeds the basic exemption limit or if they are liable for audit under Section 44AB of the Income Tax Act.

ITR-5 Introduction
Eligibility Criteria for Filing ITR-5

Who Needs to File?

The ITR-5 form is meant for a specific group of taxpayers, primarily entities and bodies that are not covered under individual, HUF, or company-specific ITR forms. Below are the eligibility criteria for filing ITR-5 for Assessment Year 2026-27:

Eligible Entities

  • Firms: Including both registered and unregistered partnership firms not opting for ITR-4.
  • LLPs: Limited Liability Partnerships - Mandated to file ITR-5 unless specifically covered under ITR-7.
  • AOPs: Association of Persons - Groups of individuals working together for a common purpose.
  • BOIs: Body of Individuals - Individuals voluntarily combining for income-generating activity.
  • Artificial Juridical Persons: Entities recognized by law but not as individuals (e.g., deities or trusts not claiming exemption).
  • Local Authorities: Not claiming exemption under Section 10(20) or Section 10(20A).
  • Estate of Deceased or Insolvent: Where legal representative or administrator files return.
  • Business Trusts and Investment Funds: Where not filing ITR-7.

When is ITR-5 Not Applicable?

  • Individual taxpayers
  • Hindu Undivided Families (HUFs)
  • Companies (Private or Public) – They should file ITR-6
  • Entities claiming exemptions under Section 11 (charitable/religious trusts) – They should file ITR-7
  • Political parties, research associations, universities, colleges, and certain institutions governed under ITR-7 guidelines

Other Criteria

  • Entities that do not fall under the category of individuals, HUFs (ITR-1 to ITR-4), companies (ITR-6), or those required to file under ITR-7 (e.g., trusts, political parties).
  • If an entity earns income from business or profession, capital gains, house property, or other sources, and does not qualify for presumptive taxation under ITR-4.

Filing ITR-5 ensures legal compliance, smooth financial management, and eligibility for tax refunds or deductions under applicable sections.

Taxable Income Threshold

Entities must file ITR-5 if:

  • Taxable income exceeds the basic exemption limit.
  • Liable for tax audit under Section 44AB.

Income Sources Covered Under ITR-5

Comprehensive coverage of all applicable income heads.

Business or Profession

ITR-5 is primarily designed for firms, LLPs, and other entities engaged in business or professional activities. Income earned through manufacturing, trading, service provision, or consultancy must be disclosed under this head.

Capital Gains & Property

Entities must report short-term or long-term capital gains from asset transfers, rental income from house properties, and income like interest, dividends, and winnings under the 'Other Sources' head.

Exempt & Agricultural

Exempt income, such as agricultural income, share of profit from partnership firms, or income under section 10 (like interest on tax-free bonds), should be separately disclosed.

Tax Deductions in ITR-5

Maximize your savings with applicable deductions.

Section 80C to 80U

Entities can claim deductions under Chapter VI-A, including Section 80C (LIC, PF, etc.), 80D (medical insurance), and 80G (donations), if eligible, to reduce total taxable income.

Depreciation & Expenses

Claim depreciation on assets and allowable business expenditures such as rent, salaries, office expenses, and interest to accurately compute net profit under the Income Tax Act.

Donations, Loans & Other

Donations made to approved institutions, interest on business loans, and other specific deductions (e.g., Section 80JJAA for new employee hiring) can be availed.

Documentation

Required Documents

Entity PAN Card

Mandatory for identification of the Firm/LLP.

Partnership Deed

For verifying profit-sharing ratios & structure.

Financial Statements

Balance Sheet, P&L, Cash Flow (Audited if required).

Audit Reports

Tax Audit Report (44AB) & Transfer Pricing Audit.

Income Details

Business, Property, Capital Gains & other sources.

TDS/TCS Certificates

Form 16A or Form 27D for tax credits.

Bank Details

Account No, IFSC & Name for refund processing.

Investments

Proofs for deductions under 80C to 80U.

GST Returns

For reconciliation of turnover with ITR.

Tax Challans

Proofs of Advance Tax & Self-Assessment Tax.

Filing Process

A simplified roadmap to filing your ITR-5 return.

1

Prepare Financial Statements

Compile the audited Balance Sheet, Profit & Loss Account, and Cash Flow Statement (if applicable). Ensure that books of accounts are finalized and reconciled.

2

Login to Income Tax Portal

Visit the Income Tax e-Filing Portal and log in using the PAN, password, and Captcha code associated with the entity.

3

Select ITR-5 and Fill Details

Navigate to the e-file section and choose the ‘Income Tax Return’ option. Select Assessment Year 2026-27, Form ITR-5, and the correct filing type (Original/Revised).

4

Declare Income & Claim Deductions

Enter all sources of income, including business/profession, house property, and other sources. Claim allowable deductions under Chapter VI-A and adjust brought forward losses, if any.

5

Validate and Review Return

Use the ‘Validate’ button to cross-check entries for errors. Carefully review the entire return to ensure accuracy and completeness before submission.

✓

Submit and E-Verify

Submit the return online. Complete the process by e-verifying it using options such as Aadhaar OTP, Net Banking, or Digital Signature Certificate (DSC).

Maintenance of Books & Audit Rules

Books of Accounts (Sec 44AA)

Entities filing ITR-5 are required to maintain proper books of accounts as per Section 44AA of the Income Tax Act. This includes cash books, ledgers, journal, bills, and vouchers, depending on the nature and turnover of the business.

Tax Audit (Sec 44AB)

If total sales, turnover, or gross receipts exceed ₹1 crore (or ₹10 crore in certain digital transaction cases), a tax audit under Section 44AB becomes mandatory. The audit must be conducted by a Chartered Accountant.

Audit Applicability

Tax audit applicability depends on the threshold turnover limit, type of entity, and nature of business or profession. For LLPs and firms, the audit threshold varies and must be carefully assessed each financial year.

Deadlines & Penalties

Audit Cases 31st October
Non-Audit Cases 31st July

Penalty (Sec 234F): Up to ₹5,000 for late filing. Losses cannot be carried forward.

Common Mistakes to Avoid

Ensure a seamless filing experience by avoiding these common errors.

Wrong ITR Form

Choosing ITR-3 instead of ITR-5 or vice versa.

No Books of Accounts

Not maintaining books as per Sec 44AA.

Missing Audit

Ignoring Sec 44AB Audit when turnover > ₹1Cr.

Incomplete Data

Incorrect income details or deductions.

Failed E-Verification

Not verifying via DSC or OTP invalidates the return.

How Udyog Suvidha Kendra Helps You

Your trusted partner for seamless tax compliance and filing.

Professional Filing Support

Our experts handle your ITR-5 filing with accuracy and efficiency, ensuring all financial details and disclosures are correctly entered to avoid errors or notices.

Compliance & Tax Advisory

We provide ongoing tax compliance guidance tailored to firms, LLPs, AOPs, and BOIs—helping you navigate deductions, audits, and regulatory updates seamlessly.

Timely Reminders

Never miss a deadline with our automated alerts and timely filing support. We ensure your returns are submitted and verified on time, every time.

Frequently Asked Questions

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