ITR-5
ITR-5 is the income-tax return of a person who is not an individual, a Hindu undivided family, or a company, and who is not required to file ITR-7. Company Suggestion files it for a partnership firm and for an LLP.
Who files ITR-5?
The form instructions name these persons.
- A partnership firm, including an LLP.
- An association of persons, and a body of individuals.
- An artificial juridical person, a local authority, an estate of a deceased or insolvent person, a business trust, and an investment fund.
- A cooperative society.
An individual files ITR-1, ITR-2, ITR-3, or ITR-4. A company files ITR-6, unless it claims exemption under section 11, in which case the return is ITR-7. A person required to file under section 139(4A) to 139(4D) also uses ITR-7, not ITR-5.
How is a firm taxed?
A firm, including an LLP, pays tax at 30 per cent of its total income, plus health and education cess of 4 per cent. Surcharge is 12 per cent when total income exceeds ₹1 crore. The firm deducts interest and remuneration paid to partners within section 40(b). The partner’s share of the remaining profit is exempt in the partner’s hands under section 10(2A).
The firm files even in a year of loss. A loss is carried forward only when this return meets the due date in section 139(1). Where section 44AB applies, the audit report is uploaded before ITR-5.
Which papers does ITR-5 need?
The return is built from the firm’s own records, not from a partner’s Form 16.
- The firm’s PAN, the deed or the LLP agreement, and the profit and loss account with the balance sheet
- The tax-audit report, where turnover or the profession crosses section 44AB
- The partners’ capital accounts, and the interest and remuneration allowed under section 40(b)
- Form 26AS and the Annual Information Statement
What are the filing steps?
Company Suggestion files ITR-5 in four steps.
- The books are closed and interest and remuneration to partners are checked against section 40(b).
- The audit report is uploaded where section 44AB applies.
- ITR-5 is filed by 31 July, or by 31 October where the accounts are audited.
- The return is e-verified within 30 days. Each partner’s own return is ITR-3.
Frequently asked questions
4 questions cover the rules that decide this registration.
Does an LLP file ITR-5?
Yes. A partnership firm and an LLP both file ITR-5. An LLP cannot use the presumptive form ITR-4.
What tax does a firm pay?
A firm and an LLP are taxed at 30 per cent, plus 4 per cent health and education cess. Surcharge is 12 per cent when total income exceeds ₹1 crore.
Is the partner’s share taxed again?
No. Section 10(2A) exempts the partner’s share of profit. Interest and remuneration that the firm deducts are taxed in the partner’s own return, which is ITR-3.
When is ITR-5 due?
For the year ended 31 March 2026, 31 October where the accounts are audited, and 31 July where they are not. A transfer-pricing report moves the date to 30 November.