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Filing of Income Tax Return - 5

5450* Basic Package

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Overview

Income Tax Return form 5 is a form meant for specific entities. It includes entities such as LLPs, AOPs, BOIs, Artificial judiciary persons, estate of deceased, the estate of insolvent, business, and investment funds. All the taxpayers who fall under these kinds of entities must file the income tax return form 5 every financial year. Under the provisions of the Income Tax Act, 1961, any entity that fails to file ITR-5 will be penalized.  

Entities those are eligible for filing ITR-5:

Under the provisions of IT Act, 1961, the entities that can file ITR form 5 are:

1) Limited liabilities partnerships

2) Association of persons

3) Body of Individual

4) Artificial Judicial Persons under section 2 (31) (Vii)

5) Local Authority under section 160(1) (iii) or 160(1) (IV)

6) Estate of deceased persons

7) Business trust that is made under section 139(4E)

8) Investment Funds under section 139(4F)

9) Estate of insolvent

10) Societies that are registered under Society registration Act 1860

11) Co-operative society

However, if any individual file their returns under section 139(4A), 139 (4B), 139 (4C), or 139 (4D) shall not file ITR form 5.

Due dates for filing ITR-5:

Under the provisions of IT Act, 1961, the entities that qualify to file ITR-5 must file their return on or before 31st August. 

Penalties for late filing:

According to Section 234F, if any entity fails to file the ITR-5 on or before the due date, then they have to pay the penalty up to INR 10,000.  

Advantages

1. ITR receipt is a precious document

When you file your income tax returns, the income tax department provides you a receipt in return. This receipt is a precious document. It contains more detailed data as compared to Form 16. Thus, filing your income tax returns helps you record all your taxations with revenue from different sources.

2. ITR receipt serves as address proof

When an individual files his/her income tax returns, the IT department sends the receipt to the registered address of the person/ entity. Thus, it serves you as your residential proof. You can show it as your proof of address in organizations like banks and NBFCs. 

3. Easy processing of bank loans

Filing your income tax returns offers you various benefits to avail loans. One such is easy processing of bank loans. When you apply for a bank loan, the bank will verify your eligibility. Thus, filing income tax returns makes it easier for you to avail any loan. The returns act as a strong document. It shows the poof of income to the loan provider. 

Whether it is a house credit, personal mortgage, or vehicle loan, you can show provide the copies of your ITR statements for easy processing of the bank loans.

4. Compensation of the losses in the next financial year

Until you file your income tax returns, you cannot compensate for your losses to the next financial year. According to the IT Act, if you do not file your income tax returns on time, your losses will not be adjusted. You cannot compensate losses for the next financial year. Thus, to ensure that you compensate your losses, you must file your Income-tax returns on time. 

5. Avoid extra interests

If you don’t file your income tax returns on time, you will be liable to pay extra interest 1% on the tax as a penalty. This penalty shall keep on adding until you file your returns. For example, a bank deducts taxes at source from the interest of the fixed deposit. In order to claim the refund of the TDS, you must file your taxable income. In case you don’t file your returns then you have to pay extra interest on the deposits, 

6. Avoid penalties

As per the IT Act, if an individual doesn’t file income tax returns on time, he/she will be held liable to pay the penalty up to INR10, 000. and this penalty shall keep on adding until you file your returns.

7. Easy credit card processing

When you apply for credit cards, the banks usually verify your income tax returns. So, if you don’t file your income tax returns, the bank may reject your credit card application. 

8. Hassle-free visa processing 

Sometimes the Visa Authorities may ask you the documents of your past tax returns. Thus, if you are applying for Visa, you must file your income tax returns on time. Filing the IT will eliminate all the hassles in Visa applications. You can get a Visa easily. 

9. Helpful for the freelancers and independent professionals 

The individuals who are independent professionals or freelancers don’t have form 16. Thus it might get difficult for them to avail of any financial benefits. Income tax returns are the only document that shows the proof of income for them. Thus, if you are freelancers or independent professional, you must file you ITR without wasting time. It will eliminate the funding issues and transactional problems.

Disadvantages

1. Interest loss on refunds: 

When you file for a refund in your tax returns that you paid in advance, you will lose some interest in filing your ITR late

2. Losses will not carry forward: 

If you file ITR-5 after the due dates, your losses will not be carried forward except house property losses.

3. Penalties: 

Filing the ITR late also results in a penalty of interest 1% per month. The penalty starts from the due date and continues until you make the payment.

Document Required

  • Aadhar card
  • Pan card
  • A financial statement that includes the balance sheet, profit and loss account
  • Annual report 
  • Auditor report 

Time Lines

  • (3 to 5 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with department
  • Receipt of Acknowledgement
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

5450*
  • Expert Consultation
  • Return filing for a taxpayer with taxable business income of less than Rs.10 lakhs.

Business

7450*
  • Expert Consultation
  • Return filing for a taxpayer with taxable business income of more than Rs.10 lakhs.

Enterprise

9450*
  • Expert Consultation
  • Return filing for a taxpayer with taxable business income of more than Rs.25 lakhs.
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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