Personal & Corporate Tax

What is ITR-5 FORM? This income tax return is meant for firms, LLP, AOPs (Association of persons) and BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund. ELIGIBILITY TO FILE ITR-5: ITR Form 5 is a form filed as income tax return by following entities: • Firms • Association of persons (AOPs) • Body of Individuals (BOIs) • Artificial Juridical Person (AJP) • Estate of deceased • Estate of insolvent • Business trust and investment fund • LLPs (Limited Liability Partnerships) • Cooperative societies • Local authority • Society registered under Societies Registration Act,1860 or under any state law trust (except trusts that are eligible for ITR-7 Form filing) IN-ELIGIBILITY TO FILE ITR-5: ITR- 5 Form is not filed by an individual, company, HUFs and those who file an income tax return in new ITR Form 7. Any person who files return of income tax under section 139(4A) or 139(4B) or 139(4C) or 139(4D) cannot use this form. PENALTY PROVISION AS PER INCOME TAX ACT1961: As per section 234F of the Income Tax Act where a person is required to mandatorily furnish a return of income under section 139, fails to do so by the due date, attracts levy of late fee under this section to the amount of Rs 5,000/-, if the return is furnished on or before the 31st day of December of the assessment year; Rs 10,000/-, in any other case: In case the total income of the taxpayer does not exceed Rs 5,00,000/- then, the late fee payable shall not exceed Rs 1,000/- in any circumstances. Section 234F was made applicable in respect of Income Tax Return filed on or after the 1st April, 2018. Annexure-less ITR Form: No document (including TDS certificate) should be attached to this ITR Form. MODE TO FILE INCOME TAX RETURN: This ITR Form can be filed with the Income-tax Department electronically on the e-filing web portal of Income-tax Department (www.incometaxindiaefiling.gov.in) and verified in any one of the following manner – (i) digitally signing the verification part, or (ii) authenticating by way of electronic verification code (EVC), or (iii) by sending duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following address – “Post Bag No. 1, Electronic City Office, Bengaluru- 560500, Karnataka”. The Form ITR-V should reach within 120 days from the date of e-filing the return of income. in case a Tax Payer accounts are required to be audited under Section 44AB of the Income Tax Act, it is mandatory to verify the return of income electronically using a digital signature. In case an assessee is required to furnish a report of audit under Sections 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC of the Income Tax Act, the assessee shall file such report electronically at least one month before the due date of filing the return of income. E-filing of Audit Reports: An assessee who needs to furnish audit report after assessment year 2013-14, under sections • 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via) - specific exemption available to certain Government and non-government universities and educational institutions • 10A- special provision in respect of newly established organization in free trade zone and so on. • 10AA - Provisions and deduction available to SEZ • 12A(1)(b) • 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115VW has to file the report electronically on or before the due dates of filing the income tax return. Due Date of ITR 5 Form Filing for FY 2019-20 & FY 2020-21: • FY 2019-20 (AY 2020-21): 10th Jan 2021 for Non- Audit Case and 15th Feb 2021 for Audit Case. • FY 2020-21 (AY 2021-22): 30th September 2021 (Revised) for Non- Audit Case and 30th November 2021 (Revised) for Audit Case. Changes In ITR 5 For Assessment Year AY 2020-21: Sl. Changes in ITR-5 [Field Name] Remarks 1 Seventh proviso to section 139(1) Information is required to be given for- Whether the taxpayer is filing ITR-3 under Seventh proviso to section 139(1) but otherwise not required to furnish return of income 2 High Value Transactions reporting [As required under Seventh proviso to section 139(1)] Exclusive reporting is required for- (i) If amounts of deposit exceeds Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit. (ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of deposit. (iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of deposit. These information are required to be given if any of the replies is in affirmative i.e. if any of the conditions is satisfied. 3 No Change in Details of Companies In case of details of companies where the taxpayer is a shareholder of unlisted equity shares 'Type of Company' is retained in ITR-5. 4 Schedule 112A inserted to report individual scrip wise details ‘Schedule 112A: From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted and notified in this year’s ITR to report individual scrip wise details on long term shares which was earlier exempt from tax and eligible for grandfathering. Earlier, this was introduced in the later version e-filing utility for AY 2019-20, but made optional. 5 115AD(1)(b)(iii) proviso inserted to report individual scrip wise details for Non-resident New Schedule ‘115AD(1)(b)(iii) proviso: For NON-RESIDENTS - From sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A’ is inserted. 6 Schedule VI-A Deductions under Chapter VI-A: Investment/ deposit/ payments between 01.04.2020 to 30.06.2020 If the taxpayer has made any investment/ deposit/ payments between 01.04.2020 to 30.06.2020, then he has to fill Schedule DI. 7 Multiple bank accounts can be selected for refund credit In preceding AY 2019-20, only one bank account was allowed to be selected for refund credit. In AY 2020-21, multiple bank accounts are allowed to be selected for getting the refund credit. In case multiple accounts are selected for refund credit, then refund will be credited to one of the account decided by CPC after processing the return. 8 Schedule DI - Details of Investment A new ‘Schedule DI - Details of Investment’ is added to report investment/expenditure made between 01.04.2020 to 30.06.2020. This commensurate with the time extension granted by Taxation and Other Laws (Relaxation of certain provisions) Ordinance, 2020 for the purpose of claiming deduction for AY 2020-21 for investments, etc made under chapter VI-A till 30.06.2020. This schedule is divided into three parts- A) Investment/ Deposit/ Payments for the purpose of claiming deduction under Chapter VI-A B) Eligible Amount of deduction u/s. 10AA C)Payment/Acquisition/Purchase/Construction for the purpose of claiming deduction u/s 54 to 54GB Structure of Form ITR 5: The Form-5 has been divided into two parts Part-A and Part-B and various schedules: Part- A includes • Part A: General information • Part A-BS: Balance Sheet as on 31st March of the financial year • Part A-Manufacturing Account for the financial year • Part A-Trading Account for the financial year • Part A-P&L : Profit and Loss Account for the financial year • Part A-OI: Other information • Part A-QD: Quantitative details There are 31 schedules in this form. They are as follows: • Schedule-HP: Computation of income under the head Income from House Property • Schedule-BP: Computation of income under the head “profits and gains from business or profession” • Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act • Schedule DOA: Computation of depreciation on other assets under the Income Tax Act • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act • Schedule DCG: Computation of deemed capital gains on sale of depreciable assets • Schedule ESR: Deduction under section 35 (expenditure on scientific research) • Schedule-CG: Computation of income under the head Capital gains. • Schedule-OS: Computation of income under the head Income from other sources. • Schedule-CYLA: Statement of income after set off of current year’s losses • Schedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years. • Schedule- CFL: Statement of losses to be carried forward to future years. • Schedule –UD: Unabsorbed Depreciation • Schedule ICDS: Effect of income computation disclosure standards on profit • Schedule- 10AA: Computation of deduction under section 10AA • Schedule- 80G: Details of donation entitled for deduction under section 80G • Schedule- 80GGA: Details of donation for scientific research or rural development • Schedule- RA: Details of donations to research associations etc. • Schedule- 80IA: Computation of deduction under section 80IA • Schedule- 80IB: Computation of deduction under section 80IB • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE. • Schedule 80P: Deductions under section 80P • Schedule-VIA: Statement of deductions (from total income) under Chapter VIA. • Schedule –AMT: Computation of Alternate Minimum Tax payable under section 115JC • Schedule AMTC: Computation of tax credit under section 115JD • Schedule-SI: Statement of income which is chargeable to tax at special rates • Schedule IF: Information regarding partnership firms in which you are partner • Schedule-EI: Statement of Income not included in total income (exempt incomes) • Schedule PTI: Pass Through Income details from business trust or investment fund as per section 115UA, 115UB • Schedule ESI: Details of Income from outside India and tax relief • Schedule TR: Details Summary of tax relief claimed for taxes paid outside India • Schedule FA: Details of Foreign Assets and Income from any source outside India • Schedule GST: Information regarding turnover/gross receipts reported for GST Part -B includes • Part B – TI: Computation of total income • Part B – TTI: Computation of tax liability on total income Part -C includes Tax payments that contains details of: • Payment of advance-tax and tax on self-assessment tax • Tax deducted at source on income other than salary (16A, 16B, 16C) • Tax collected at source Final step is Verification. DOCUMENT REQUIRED FOR FILING ITR-5: • Permanent Account Number (PAN) • Aadhaar Number • GSTIN No. and turnover as per GST returns • Match book turnover with GST returns • Form 16A & 16C (if any issued by deductor) and TDS certificate • Form 16 from employer. An employee who has change the job in Financial Year can have 2 or more form 16. • TDS certificate from employer • Match tax details with 26 AS • Statement of interest paid on house loans • Interest statements showing interest earned on savings bank account and fixed deposits • Proof of tax saving investments/expenses (80C to 80U) • Bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020. • Other investment documents, such as statement of interest paid on education loan etc. • Bank account details with IFSC code • Balance Sheet • Manufacturing Account • Trading Account • Profit & Loss. • Advance Tax SERVICE PROVIDED & PROCESS: • Collection of necessary documents such as Form 16 (TDS Certificate issued by the employer in case tax is deducted from salary), Form 16A ( issued by the bank for TDS deducted on the interest payment on the fixed deposit) in the TRACES format & capital gain statement. TDS certificate should be digitally signed by the taxpayer. • Download Form 26AS & cross check with TDS certificate to ensure that tax deducted from taxpayer salary or from taxpayer interest income is deposited with the government. • In case of any error, rectify Form 26AS. If the error is not rectified, taxpayer won’t be able to claim credit on deducted tax. • Next step is to calculate total income chargeable to tax. • After this, taxpayer needs to calculate tax liability. • Once all the taxes are paid, taxpayer can proceed for Income Tax Return filing. taxpayer can only claim for refund if taxpayer file income tax return. • Verification of Income Tax Return • Receive e-verification acknowledgement • Department will process taxpayer return and will communicate through mail. CHOOSE REQUIRED PLAN: • Basic: ITR-5 FILING for taxable income upto 10 lakhs Service Fees- 9999/- Including Taxes • Standard: ITR-5 FILING for taxable income less than 25 lakhs Service Fees- 14999/- Including Taxes • Ace: ITR-5 FILING for taxable income more than 25 lakhs. Service Fees- 19999/- Including Taxes Working Process :

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Frequently Asked Question (FAQ’S)- Q- Is filing ITR Form is mandatory? A-Yes, to file return of income tax one must fill ITR forms which states detailed information of the taxpayer and his or her tax liabilities and deductions. Q- Who should use the ITR 5 Form? The ITR 5 Forms is to be used by firms, LLPs, Associations of Persons (AOPs), BOIs, Artificial Judicial Persons, Cooperative Societies, and Local Authorities. Q- Is it possible to Submit ITR once the last date of filing is left? In matter you fail to file the return on a scheduled date, there is a prerequisite to filing return up to a particular time. Nevertheless, with a late filing fee and reduced interests, the late arrival can be filed before the end of Assessment Year for the concerned financial year. Q-What is the Amended Income Tax Return? A-Income Tax section allows reducing the ITR if the new ITR includes oversight or wrong report accidentally.A taxpayer can register the amended return up to the end of Annual Year (2018-2019, 31 March 2020) or before the conclusion of the assessment whichever is prior . Q- how can the audit Report be generated for form ITR-5? A- The audit report can be generated online while filing the return. For this click on Audit Report, then 3CA-3CD and finally on generate report. ***