ITR-5 form is now available: Who should file it?
What's the story
The Income Tax Department has launched the Excel form for filing Income Tax Return (ITR)-5 for Assessment Year (AY) 2025-26. The new tool is now available on the e-filing portal, allowing eligible taxpayers to start their filing process. The release comes a bit late this year due to major changes made in ITR forms.
Eligibility criteria
Who are eligible for ITR-5?
ITR-5 is meant for companies, Limited Liability Partnerships (LLPs), and certain entities such as co-operative societies under the Income Tax Act of 1961. The updated form now permits reporting of buyback losses only if the related dividend has been taxed. This change appears to be part of a broader effort to improve tax compliance and reporting accuracy among eligible taxpayers.
Form details
Structure of ITR-5
The ITR-5 form has two main parts. Part A needs general information, balance sheet, manufacturing/trading accounts, profit & loss statement, and other details. Part B is for computing income and tax liability with schedules for income from different sources, loss set-off, depreciation, deductions, exempt income, foreign assets, GST reconciliation, and tax relief among others.
Updates
Filing process and key updates
The key updates for AY 2024-25 include new sections for MSME registration and Section 80-IAC start-up deductions. There is also expanded reporting for the emerging income categories such as virtual digital assets (crypto/NFTs). Taxpayers can file online through the Income Tax Department's e-filing portal using a digital signature or verification code. Offline submission is also an option.
Important dates
Important deadlines and pre-filing requirements
The deadline for filing ITR-5 is July 31, 2025, for non-audited entities and October 31, 2025, for audited accounts. Taxpayers must ensure portal registration, bank account validation for any refunds, updated digital signatures, and submission of applicable statutory forms before filing their returns. These steps appear crucial to ensure a smooth filing process and avoid any last-minute issues or delays.