ITR-5 is the income tax return form used by firms, Limited Liability Partnerships (LLPs), Association of Persons (AoPs), Body of Individuals (BoIs), and other entities to file their income tax returns.
Firms and LLPs are required to file their income tax returns using ITR-5. The form requires details of the firm's or LLP's income from various sources such as business, profession, capital gains, income from house property, and income from other sources. The form also requires details of expenses incurred to generate income, deductions claimed, taxes paid, and other relevant information.
Additionally, ITR-5 requires entities to provide details of partners, including their names, PAN numbers, share in profits, and capital invested. In the case of LLPs, details of designated partners need to be provided as well.
It is important to note that firms and LLPs with a turnover of up to INR 2 crore can opt for the presumptive taxation scheme under Section 44AD of the Income Tax Act. In such cases, the income of the firm or LLP is estimated at 8% of the gross receipts or turnover, and detailed books of accounts are not required to be maintained.
Once the relevant information is entered in the form, the taxable income is calculated automatically. The entity can then pay the tax due, if any, and file their ITR-5 online on the Income Tax Department's e-filing portal or offline by submitting a physical copy of the form to the relevant income tax office. It is important to file ITR-5 within the due date to avoid any penalties or late fees.