ITR-5 Form: What it is, Eligibilty & How to File for AY 27-28

Written by : Knowledge Centre Team

2026-08-07

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The form you use when filing income tax returns depends entirely on who you are and what kind of income you earn. If you're a partner in a firm, run an LLP, manage a business trust, or handle returns for an AOP, BOI, or cooperative society, you have to use the ITR-5 form. This guide breaks down what ITR-5 is, who should (and shouldn't) file it, its structure, and a step-by-step process to file it correctly for Tax Year 2026-27.

Key Takeaways

ITR-5 is meant for firms, LLPs, AOPs, BOIs, business trusts, investment funds, cooperative societies and local authorities
Trusts filing under Sections 139(4A)-(4D) equivalents cannot use ITR-5 and must file ITR-7 instead
ITR-5 must be filed online; verification is via DSC, EVC, or a signed ITR-V sent to CPC Bengaluru
No documents need to be attached while filing ITR-5; keep them handy only if the department asks
Firms and LLPs with tax audit under Section 63 (earlier 44AB) must e-verify ITR-5 using a DSC

What is ITR 5?

ITR 5 is one of the income tax return forms that must be filed by a specific group of taxpayers. As mandated by the Income Tax Act, ITR 5 can be used by firms, LLPs, artificial juridical persons, AOP, BOI, business trusts and investment funds, estates of deceased persons, estates of insolvent persons, cooperative societies and local authorities. However, a person eligible to file the return of income under Section 262 of the Income Tax Act, 2025 (previously covered under sections 139(4A), 139(4B), 139(4C) or 139(4D) of the Income Tax Act 1961) shall not use this form.

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Structure of ITR-5 Form (For Tax Year 2026-27):

ITR 5 form has been divided into two parts and several schedules and must be filled in the following order:

Part A: General information:-
- Part A-BS: Balance Sheet as on 31st March 202725
- Part A-Manufacturing Account for Tax Year 2026-27
- Part A-Trading Account for Tax Year 2026-27
- Part A-P&L: Profit and Loss Account for Tax Year 2026-27
- Part A-OI: Other information
- Part A-QD: Quantitative details
Then there are 31 schedules around Computation of income, Computation of depreciation, Statement of depreciation, income and losses, Deductions, etc.
Part B:
- Part B – TI: Computation of total income
- Part B – TTI: Computation of tax liability on total income
Tax payments:
- Details of payment of advance tax and tax on self-assessment tax
- Details of tax deducted at source on income other than salary (Form 131 and 132 which were earlier called 16A, 16B, 16C)
- Details of collected at the source

ITR 5 is for Whom? Eligibility to File ITR-5)

ITR 5 means the return form for entities that aren't individuals, HUFs, or companies. It's built for a specific class of taxpayers whose income doesn't fit neatly into the more common ITR forms. So, who is ITR 5 for? This form can be used by a person who is:

A firm or Limited Liability Partnership (LLP)
Association of Persons (AOP)
Body of Individuals (BOI)
Artificial Juridical Person (AJP) referred to in Section 2 of the Income Tax Act, 2025 (earlier clause (vii) of section 2(31) of the Income Tax Act, 1961)
Local authority referred to in Section 2 of the Income Tax Act, 2025 (earlier clause (vi) of section 2(31) of the Income Tax Act, 1961)
Representative assessee referred to in Section 303(1) of the Income Tax Act, 2025 (earlier section 160(1)(iii) or (iv) of the Income Tax Act, 1961)
Cooperative society
Society registered under the Societies Registration Act, 1860 or under any other law of any State
Trust other than trusts eligible to file Form ITR-7
Estate of deceased person or estate of an insolvent
Business trust referred to in Section 263 of the Income Tax Act, 2025 (earlier section 139(4E) of the Income Tax Act, 1961)
Investment fund referred to in Section 263 of the Income Tax Act, 2025 (earlier section 139(4F) of the Income Tax Act, 1961)

Did You Know?

As of the report, only 2.77 crore ITRs had been filed for AY 2026–27 so far versus 6.97 crore for the full AY 2025-26

Source: News18

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Major Updates in ITR-5 for Tax Year 2026-27

Filing your business or firm’s income tax return has become much more streamlined with the introduction of the Income Tax Act 2025. To ensure you remain fully compliant and avoid schema validation errors on the e-filing portal, you must be aware of the recent structural and regulatory changes.

If you are preparing your return for Tax Year 2026-27, here are a few changes in the ITR-5 you need to keep in mind:

Long-Term Capital Gains on Equities: A separate Section 198 of the Income Tax Act, 2025 (earlier Section 112A of the Income Tax Act, 1961) will be used to calculate long-term capital gains on the sale of equities of a business, which is subject to Securities Transaction Tax (STT).
Mandatory Investment Disclosures: The updated forms require much deeper transparency regarding your investments. You must now provide detailed information, including:
- The exact share’s name or security
- The type of company you have invested in
- The Permanent Account Number (PAN) of the entity
- The complete movement in the investment throughout Tax Year 2026-27
Transfer Pricing Adjustments: You are required to accurately report the tax on secondary adjustments to transfer pricing, as governed under Section 170 of the Income Tax Act 2025, earlier referred to as 92CE(2A) of the Income Tax Act 1961.
Updated Tax Deduction Claims: All tax deduction claims for investments or other expenses must now be mapped under the Income Tax Act 2025. (Note: Claims are strictly aligned with the standard April 1 to March 31 window for Tax Year 2026-27).
Increased Audit Threshold Limits: To ease compliance and encourage digital transactions, the tax audit threshold limit for a person carrying on a business is established at ₹10 Crore (upgraded from the older ₹1 Crore and ₹5 Crore limits) in cases where the aggregate cash receipts or cash payments by a business don’t exceed 5% of such receipts or payments.

How to File ITR 5 Form?

ITR 5 for filing income tax return should be done online on the e-filing web portal of the Income-tax Department. However, the form can be verified in the following ways:

Digitally signing the verification part (In a case where accounts are required to be audited under Section 63 of the Income Tax Act, 2025 (earlier Section 44AB of the Income Tax Act, 1961), it is mandatory to verify the return electronically under digital signature.)
Authenticating by way of electronic verification code (EVC)
Sending duly signed paper Form ITR-V (Acknowledgement) by post to CPC, Bengaluru.

ITR 5 must include all types of income other than that of income mentioned in Part B of Chapter XVII (Sections 332–355) of the Income Tax Act, 2025 (earlier Section 11 of the Income Tax Act, 1961, which lays down provisions for income related to religious or charitable property.

Steps to e-file ITR 5
Visit the e-filing portal of the Income Tax department at www.incometax.gov.in
Transfer the required data in the form and digitally sign the document in case you wish to choose the e-verification method
In case the verification is not done electronically, the assessee should print two copies of form ITR-V and send a duly signed copy to the CPC address in Bangalore
You are not required to attach any documents while filing ITR-5.

Conclusion

Filing the right ITR form isn't just a procedural matter. It's the foundation of accurate, penalty-free compliance. If you're a firm, LLP, AOP, BOI, or similar entity, understanding ITR 5 for which income it applies, its structure, and the correct filing steps helps you meet your Tax Year 2026-27 obligations confidently and on time.

Glossary

ITR-5: Tax return form used by firms, LLPs, AOPs and BOIs to report business and other income
LLP: imited Liability Partnership, a hybrid business structure combining partnership and company features
AOP: Association of Persons, two or more individuals or entities joining for a common purpose or income
EVC: Electronic Verification Code, a way to verify your ITR online without a digital signature
BOI: Body of Individuals, a group of persons, not necessarily related, earning income together

FAQs

ITR-5 is the income tax return form meant for entities other than individuals, HUFs, and companies. It's used by firms, LLPs, AOPs, BOIs, business trusts, investment funds, cooperative societies, and local authorities.

Firms, LLPs, AOPs, BOIs, business trusts, investment funds, cooperative societies, local authorities, and estates of deceased or insolvent persons should file ITR-5, provided they aren't required to file ITR-7.

No. Individuals and HUFs cannot use ITR-5; they must file ITR-1, ITR-2, ITR-3, or ITR-4 depending on their sources of income.

ITR-5 captures income from business or profession, capital gains, house property, and other sources, except income of registered charitable or religious trusts (earlier exempt under Part B of Chapter XVII of the Income Tax Act, 2025), which is reported in ITR-7 instead.

Non-audit firms and LLPs must file by 31 July 2026; entities requiring a tax audit have until 31 October 2026, and those with transfer pricing reporting (Form 48) get until 30 November 2026.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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How to File ITR-5 Form? A Step-by-Step Guide

Key Takeaways

What is ITR 5?

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Structure of ITR-5 Form (For Tax Year 2026-27):

ITR 5 is for Whom? Eligibility to File ITR-5)

Did You Know?

Major Updates in ITR-5 for Tax Year 2026-27