Navigating the income tax filings is generally a difficult task, mainly when we need to follow several forms and processes. In case, you are wondering to know about the process of filing Form ITR 5, then you are at the right place. The comprehensive guide will break down the essentials, giving you a straightforward instruction to complete the procedure of filing Form ITR 5.
Table of Content
- Overview of Form ITR 5
- Who is eligible for filing Form ITR 5?
- Step–by-step guidance on filing Form ITR 5
- End Notes
Overview of Form ITR 5
Form ITR 5 is a return form, submitted by Hindu undivided families, individuals and firms other than LLPs, who have a business to do during a financial year. Along with taxpayers who have opted for a presumptive tax scheme as per provisions of section 44AD, section 44ADA, or section 44AE of the Income Tax Act, 1961.
It is significant to know that Form ITR 5 cannot be filed by taxpayers who have earned income and profits from businesses that are chargeable to tax under “Capital Gains”.
Who is eligible for filing Form ITR 5?
In India, Form ITR 5 is designed for a particular section of taxpayers, and these are:
- It applies to all individuals;
- Hindu undivided families.
These are for those, who are having business activities at the time of financial year. It can be filed by taxpayers who have a presumptive tax scheme as per section 44AD, section 44ADA or section 44AE of the Income Tax Act, 1961. In addition, Form ITR 5 is for those, who have income from sources like salary, house property, or another source of income.
Step-by-step guidance on filing Form ITR 5
Here we are going to discuss how to file ITR 5:
- Collect required documents: It is necessary to have all the relevant documents such as an Aadhaar card, TDS certificate, PAN card, bank statements, and information regarding all income earned at the time of the financial year.
- Download Form ITR 5: Go to the official website of the Income tax department to download the current version of Form ITR 5.
- To know Form ITR 5: Read Form ITR 5 thoroughly to understand various sections to make sure appropriate and complete details. Also, read the instructions given with the form.
- Fill personal details: Start by filling in all personal details, such as PAN, name of the entity, address, and other relevant information.
- Submit financial information: To complete Form ITR 5, need to provide personal financial details. It may include tax computation, income, and deductions.
- Ensure about tax liability: Evaluate tax liability based on details given. Be aware of tax deductions and credits applicable to your entities.
- Review: Verify the information filled in the form before proceeding further.
- Form submission: Once all information is reviewed, submit the form ITR 5 online filing through the website. One may be required to log in or register the account to proceed.
- Generate and review ITR-5: After submitting form ITR 5, ensure to download the ITR 5 Acknowledgment receipt from the website. This is a verification document, which is required to be signed and sent to the Centralized Processing Centre (CPC) within 120 days of ITR 5 online filing.
- Send ITR 5 to CPC: Need to print the form ITR 5, sign it with a blue pen, send it to CPC address as mentioned on the form, and post it. Alternatively, one can use the e-verification method also.
- Receipt confirmation: Once the ITR-5 is received and reviewed by the CPC, one can receive an acknowledgement receipt by mail.
New Income Tax Return Forms
End Notes
In the end, we can conclude that the comprehensive guide has the purpose of providing an easy roadmap to filing income tax returns for firms, bodies of individuals, and associations of persons. This article makes the simpler form to file form ITR 5. Filing form ITR 5 not only completes the legal obligations but also helps in financial transparency and accountability. With a better understanding, one can easily approach the tax filing with confidence.
