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ITR 5 Form for FY 2019-20 & AY 2020-21

Individuals and corporations in India are required to pay income tax under the laws set down by the Income Tax Department. For FY 2020-21, they must file the Income Tax Return (ITR) using various ITR forms, one of which is the ITR 5 form, depending on their tax rate and the kind of company they belong to.

What is ITR 5?

Firms, Body of Individuals (BOIs), Limited Liability Partnerships (LLPs), Artificial Juridical Person (AJP), Association of Persons (AOPs), the estate of insolvent, the estate of deceased, investment fund, business trust, local authority, and co-operative society can all use ITR Form 5 to file their tax returns. Anyone who falls into one of the categories mentioned above is qualified to file an ITR 5.

Structure of ITR Form 5?

The ITR 5 Form is divided into two parts—Part A and Part B.

Part A – General Information About the Taxpayer

General information, balance sheet details on the last day of the financial year, manufacturing account details for the financial year, trading account details for the financial year, profit and loss account information for the financial year and other information are all necessary for the Part A of the form.

Part B

Part B requires you to provide data on how you calculated your total income and your tax liability on your total earnings. Aside from the information mentioned above, the ITR 5 Form also includes information on essential components of the organisation. The following are some important schedules:

  • HP Schedule – Information on any earnings from the house.
  • Schedule CG – Provides information on any capital gains.
  • Schedule BP – This contains information on calculating company income.
  • Schedule DCG – Provides information on any capital gains realised from the sale of a depreciable asset.
  • Schedule DOA – It contains information on asset depreciation.
  • DPM Schedule – Information on depreciation of machinery and plant.


Changes in the ITR-5 Form in AY 2019-20

Recognition from DPIIT as a start-up company.

  • Declaration filled in Form-2.
  • Partnership firm details.
  • Bifurcation of donations through cash and non-cash payment modes.
  • Gross GST receipt/ turnover reported.


Changes in the ITR-5 Form in AY 2020-21

  • The name, kind of firm, PAN, movement in quantity, and investment throughout the financial year should all be included in the data of unlisted equity share investments.
  • A separate schedule 112A is used to calculate long-term capital gains on selling STT-eligible equity shares or units of a business trust.
  • Section 92CE details on tax on secondary adjustments to transfer price (2A).
  • Details of tax deduction claims for investments, payments, and expenses made between April 1 and June 30, 2020.


How can you file ITR Form 5?

There are two ways to file an ITR 5 form on the Income Tax Department’s website. The first method is to submit the return electronically using your digital signature. Another option is to transmit the data and then use the ITR 5 form to verify the return. After you’ve completed the ITR 5 file, you’ll need to print a set of copies. You may keep one copy for your records and sign and mail the other to Post Bag No.1, Electronic City Office, Bengaluru – 560500.

Furthermore, if your company’s accounts are subject to audit under Section 44AB, you must submit the return online with a digital signature. When filing the ITR 5 Form, it’s crucial to remember that no documents should be attached to the return form. If you have any such documents attached to your ITR Form 5, they will be removed and returned to you. The Tax Credit Statement in Form 26AS must match the amount of tax deducted, paid, or collected by you or on your behalf.

How to fill out the verification document

  • In the verification document, fill in the relevant information.
  • Remove anything that isn’t relevant. Before submitting the return, please double-check that the verification has been signed.
  • Choose the designation/capacity of the person signing the return.
  • Please be aware that anyone who makes a false statement in return or supporting schedules will be prosecuted under section 277 of the Income-tax Act, 1961, and will be sentenced to harsh imprisonment and a fine if convicted.
  • Please be aware that anyone who makes a false statement in return or supporting schedules will be prosecuted under section 277 of the Income-tax Act, 1961, and will be sentenced to harsh imprisonment and a fine if convicted.

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