ITR-5 is the income tax return form for a wide range of entities other than individuals and HUFs. For Assessment Year 2025–26, this form is applicable to partnership firms, LLPs (Limited Liability Partnerships), Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons (AJPs), as well as the estate of deceased or insolvent persons, business trusts, and investment funds.
It is used to report income from business, profession, capital gains, house property, or other sources. Entities must file ITR-5 electronically and comply with disclosure norms laid down by the Income Tax Department.
Who can file ITR-5?
The ITR-5 form can be used by a variety of non-individual entities, including Partnership Firms, LLPs (Limited Liability Partnerships), Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons (AJPs), Estates of Deceased and Insolvent Individuals, Business Trusts, and Investment Funds as referred to in Section 115UB. These entities can report income from business, profession, house property, capital gains, or other sources using this form.
Who cannot file ITR-5:
Individuals and Hindu Undivided Families (HUFs) cannot use ITR-5—they should file ITR-1 to ITR-4 depending on their income type. Also, companies (except business trusts or investment funds) are not eligible to file ITR-5—they must use ITR-6 or ITR-7 based on their exemption status. Additionally, charitable or religious trusts, political parties, and certain other institutions required to file under sections 139(4A) to 139(4F) should file ITR-7, not ITR-5.
I-T Dept notifies forms ITR 1-5
Taxpayers can now file their returns for the recently concluded financial year using several forms notified recently by the Central Board of Direct Taxes. The Income Tax Department has officially released ITR Forms 1 to 5 over the past fortnight — with the other documents expected in the coming days. Several changes have been introduced this year with the eligibility and requirements changing significantly in certain cases.
Different tax returns are prescribed for filing by individual taxpayers depending on their income and its source as well as factors such as residential status.
Who can use ITR-1?
The simplified form is designed for individuals and entities who earned up to Rs 50 lakh during the recently concluded financial year. Following the changes notified by the Central Board of Direct Taxes this week, individuals who have accrued long-term capital gains upto Rs 1.25 lakh within a financial year are also eligible to file the user-friendly application rather than the more complicated ITR-2.
Who can use ITR-2?
ITR 2 form can be filed by individuals or HUFs who do not have income under the head of profits and gains of business or any profession. Individuals and HUF with income exceeding Rs 50 lakh in a financial year should file this form.
Who can use ITR-3?
TR-3 is filed by individuals and HUFs having income from profits and gains of business or profession. The threshold for reporting assets and liabilities under ‘Schedule AL’ has been raised from Rs 50 lakh to Rs 1 crore this year — reducing the disclosure burden on middle-income taxpayers. The recent updates also allow individuals or HUFs who purchased houses before July 23, 2024 to opt for payment of Long Term Capital Gain tax under the new scheme at the rate of 12.5% without indexation or claim the indexation benefit and pay 20% tax.
Who can use ITR-4?
Individuals, HUFs and firms (excluding Limited Liability Partnerships or LLPs) can file ITR-4 if they earn below Rs 50 lakh during the financial year. It is also applicable if their income is computed presumptive basis under Sections 44AD, 44ADA or 44AE of the Income Tax Act.