📄 What Is ITR‑5 & Who Should File?

The ITR‑5 form is for entities other than individuals/HUFs, including:

– Partnership firms, LLPs
– Association of Persons (AOPs), Body of Individuals (BOIs), Artificial Juridical Persons (AJPs)
– Business trusts & investment funds (under Sec 115UB)
– Estates of deceased/insolvent persons
– Certain cooperative societies/trusts not covered under ITR‑7 newindianexpress.com+15financialexpress.com+15cleartax.in+15

Not applicable to companies, individuals, HUFs, charitable trusts filing under ITR‑7 .

🆕 Key Changes in New ITR‑5 (AY 2025‑26)

Based on CBDT Notification No. 42/2025 (effective April 1, 2025) reddit.com+4taxguru.in+4caclubindia.com+4:

Split Capital Gains: Gains before & after 23 July 2024, reflecting Finance Act updates taxguru.in+7newindianexpress.com+7taxguru.in+7
Share Buyback Losses Allowed: If related dividend reported as “Other Income” (post‑1 Oct 2024) timesofindia.indiatimes.com+15newindianexpress.com+15taxguru.in+15
Section 44BBC Schemes: New checkbox & Schedule‑BP updates for non‑resident cruise operations taxguru.in+6newindianexpress.com+6anamca.com+6
TDS Section Codes Required: Must specify actual sections (e.g., 194A, 194C) in Schedule‑TDS cleartax.in+8newindianexpress.com+8caclubindia.com+8
Enhanced Entity Disclosure: Include LEI (for ≥₹50 Cr transactions), entity details, contact info, business codes economictimes.indiatimes.com
Schedule‑FA/TR Enhancements: More detail on foreign taxes & assets cleartax.in+8cleartax.in+8outlookmoney.com+8
Audit‑related fields: Dropdown for filing under sections 139(1)/(4)/(5), audit due dates outlookmoney.com+6cleartax.in+6caclubindia.com+6
Improved e‑filer validation: Updated JSON/Excel utility with front‑end error checking

📑 Form Structure Overview

Parts A / A‑BS / A‑P&L / A‑OI etc.
- General entity info, balance sheet, P&L, other disclosures
Schedules include:
- HP: House property income
- BP: Business/profession (includes 44BBC)
- DPM/DOA/DEP/DCG: Depreciation details
- CG: Capital Gains (split as per date)
- 112A / VDA: Equity LTCG & Digital Assets
- OS: Other income (including buyback dividends)
- CYLA, BFLA, CFL: Loss adjustments
- TDS/TCS, Tax Paid
- FA/TR: Foreign asset/tax credit details
- 80GGA, Audit: Donations/research, audit disclosure taxguru.in+15cleartax.in+15economictimes.indiatimes.com+15 reddit.com+4reddit.com+4studycafe.in+4 en.wikipedia.org

📆 Audits & Deadlines

Non‑audit entities: File by 31 July 2025
Audit‑required (e.g., under 44AB, trust audits): File by 31 October 2025
Business trusts (92E) & transfer pricing: File by 30 November 2025 cleartax.in+3studycafe.in+3newindianexpress.com+3

✅ Why These Changes Matter

Regulatory compliance: Split gains/reporting reflect updated tax rates & rules
Transparency: LEIs, TDS codes, audit options improve quality of data
Simplified presumptive filing: For cruise operators under Section 44BBC
Better cross-verification: Detailed entity info reduces mismatches/errors
Ease of filing: Improved software validation minimizes filing mistakes

💡 Filing Tips

Choose correct form – ITR‑5 is not for individuals or companies; misfiling could result in defective return penalties filingin.com+4caclubindia.com+4studycafe.in+4 studycafe.in taxguru.in+6anamca.com+6caclubindia.com+6 economictimes.indiatimes.com+14filingin.com+14economictimes.indiatimes.com+14
Use updated utility – Download the 2025‑26 ITR‑5 Excel/JSON tool from the e‑filing portal
Document TDS sections – Match with your Form 26AS to ensure credits pass through
Track capital gains – Use transaction statements to split gains correctly
Buyback loss rules – Claim only if dividend income from buybacks is reported
Ensure entity details are accurate – Pvt Ltd/LLP info must match ROC records

📝 Summary

ITR‑5 is the mandatory return for firms, LLPs, partnerships, AOPs, BOIs, AJPs, business trusts, estates, and certain cooperatives. For AY 2025‑26, the form is revamped to capture split capital gains, buyback rules, cruise‑ship presumptive incomes, TDS codes, entity disclosures, audit selections, and more. The goal is to enhance transparency, streamline reporting, and reduce errors.

Let me know if you’d like help navigating Schedule‑BP, gaining clarity on audit applicability, comparing presumptive vs regular reporting, or filling out TDS/CG schedules.

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