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Key Benefits – ITR-5

  • Mandatory compliance for partnerships, LLPs, and other non-individual entities
  • Covers complex income structures not allowed in individual ITR forms
  • Allows reporting of partner remuneration and interest
  • Supports audit and non-audit cases
  • Ensures correct tax computation for firms and trusts
  • Reduces scrutiny risk through proper disclosures
  • Essential for regulatory, banking, and funding requirements

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7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

Income Tax E-Filing of ITR-5 is applicable to entities other than individuals, HUFs, companies, and those filing ITR-7. This return is designed for partnership firms, LLPs, associations, trusts (non-charitable), and similar entities that require structured financial and tax reporting.
ITR-5 exists because such entities have distinct tax treatment, including partner remuneration, interest payments, and entity-level taxation, which cannot be captured in individual return forms.
You should file ITR-5 if your entity is
  • A Partnership Firm
  • A Limited Liability Partnership (LLP)
  • An Association of Persons (AOP) or Body of Individuals (BOI)
  • A Co-operative Society
  • A Local Authority
  • An Artificial Juridical Person
  • A Trust not required to file ITR-7
ITR-5 is filed electronically through the portal of the Income Tax Department and involves detailed financial disclosures.

Eligibility Criteria for ITR-5

You must file ITR-5 if
  • You are an entity other than Individual, HUF, Company, or ITR-7 filer
  • You earn income from business, profession, investments, or other sources
  • You are required to report partner/member details and financial statements
You cannot file ITR-5 if
  • You are a company (ITR-6 applies)
  • You are an individual or HUF
  • You are a charitable or religious trust required to file ITR-7

Income Covered Under ITR-5

ITR-5 allows reporting of
  • Business or professional income
  • Income from house property
  • Capital gains
  • Interest, dividend, and other income
  • Partner remuneration and interest
  • Foreign income (if applicable)
  • Specified incomes under special provisions
This form includes mandatory schedules for balance sheet, profit & loss account, and partner/member details.

Documents Required for Filing ITR-5 (AY 2026-27)

To file ITR-5 correctly, keep the following ready
Documents
  • 1 PAN of the entity
  • 2 Partnership deed / LLP agreement
  • 3 Books of accounts
  • 4 Profit & Loss Account
  • 5 Balance Sheet
  • 6 Capital accounts of partners/members
  • 7 Details of partner remuneration and interest
  • 8 Bank statements
  • 9 TDS certificates
  • 10 GST returns (if applicable)
  • 11 Audit report (if applicable)
  • 12 Previous year ITR

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Comparison

Parameters Particulars Applicability
Old vs New Tax Regime Not applicable
Basic tax rate for firms / LLPs Flat rate as prescribed
Section 87A rebate Not applicable
Standard deduction Not applicable
Partner remuneration & interest Allowed subject to limits
AMT applicability May apply in certain cases

Penalties and Consequences

Incorrect or delayed filing of ITR-5 may lead to:

Late filing fees and interest
Disallowance of partner remuneration
Audit notices or scrutiny
Penalties for inaccurate reporting
Issues in banking, compliance, or regulatory filings

How We Work

Step 01

Eligibility and Requirement Assessment

Step 02

Document and Data Collection

Step 03

Review and Computation

Step 04

FilingorSubmission

Step 05

Post-FilingSupport

Common Errors and Mistakes

01

Filing ITR-3 or ITR-4 instead of ITR-5

02

Incorrect partner remuneration limits

03

Mismatch between P&L and balance sheet

04

Missing audit details

05

Incorrect classification of entity type

Due Date and Compliance Timeline (AY 2026-27)

Audit cases: As per notified audit due date
Belated return: Allowed with late fees
Revised return: Allowed if errors are discovered
Updated return: As per statutory limits
Non-audit cases
31
July
2026

FAQs

Who must file ITR-5?

Partnership firms, LLPs, AOPs, BOIs, and similar entities.

Does the ₹12 lakh rebate apply to ITR-5?
Is audit mandatory for all ITR-5 filers?
Can LLPs file ITR-4?
Can losses be carried forward?

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" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
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