Income Tax Department Notifies ITR-5 Form For AY 2025-26: Key Highlights of the Revised ITR Form 5

Key Highlights of the Revised ITR Form 5

1. Split in Schedule-Capital Gain: Taxpayers are now required to report capital gains separately for periods before and after July 23, 2024. This change aligns with amendments introduced in the Finance Act, 2024 .

2. Reporting of Capital Loss on Share Buybacks: The form permits reporting of capital losses from share buybacks, provided the corresponding dividend income is declared as "income from other sources," especially for transactions post-October 1, 2024 .

3. Inclusion of Section 44BBC: A specific reference to Section 44BBC of the Income Tax Act has been added, indicating its applicability to certain taxpayers .

4. Mandatory TDS Section Code in Schedule-TDS: Taxpayers must now specify the Tax Deducted at Source (TDS) section code within Schedule-TDS, enhancing clarity in tax deductions .

5. Enhanced Entity Identification: The form now requires detailed information such as the entity's name, PAN, date of formation, and LLP Identification Number (if applicable) .

6. Expanded Address Details: Taxpayers must provide comprehensive address information, including flat or door number, building name, locality, district, state, pincode, country, and contact details .

7. Clear Filing Status and Deadlines: A dropdown-style selection has been introduced to specify the due date of return filing (July 31, October 31, or November 30). Additionally, taxpayers must indicate the section under which the return is being filed, such as Section 139(1) for returns filed within the due date

   ITR-5 (Income Tax Return Form 5) is a form prescribed by the Income Tax Department of India for filing income tax returns by specific types of entities other than individuals and HUFs (Hindu Undivided Families). It is meant for entities such as:

   Eligible Assessees for ITR-5

   • Firms

   • Limited Liability Partnerships (LLPs)

   • Association of Persons (AOPs)

   • Body of Individuals (BOIs)

   • Artificial Juridical Persons (AJPs)

   • Estates of deceased or insolvent persons

   • Business trusts

   • Investment funds

   • Co-operative societies (if not filing ITR-7)

   • Local authorities (other than those required to file ITR-7)

   Not Applicable To

   • Individual taxpayers

   • Hindu Undivided Families (HUFs)

   • Companies (they must file ITR-6)

   • Charitable or religious trusts, political parties, etc., who should file ITR-7

   Key Features of ITR-5

   1. Comprehensive Disclosure: Requires reporting of income from all sources—business/profession, capital gains, house property, other sources, etc.

   2. Balance Sheet & P&L: Requires submission of financial statements including balance sheet, profit & loss account, and partner/member details.

   3. Audit Details: Mandatory disclosure of tax audit information under section 44AB, if applicable.

   4. MAT/AMT Reporting: Requires Minimum Alternate Tax (MAT) or Alternate Minimum Tax (AMT) computations where applicable.

   5. Schedule Details: Numerous schedules for depreciation, deductions under Chapter VI-A, TDS, TCS, MAT credit, etc.

   6. Filing Modes: Must be filed electronically, with or without digital signature, depending on the case.

   7. Verification: Can be verified through digital signature or EVC (Electronic Verification Code).