What is ITR-5? Applicability, Filing Process & Updates for FY 2025-26

Filing income tax returns in India often feels complicated because there are so many forms. Every form is designed for different taxpayers’ categories.

For a smooth filing, choosing the right form is essential. Thus, to make your understanding better about income tax return filing, we have simplified ITR-5 in this blog post.

We will discuss what ITR-5 means, the ITR-5 due date, and who can file this particular form. You can find other types of ITR forms in our blog section. Let’s now move on to the in-depth details of the ITR-5 form.

What is the ITR-5 Form?

The ITR-5 form is for entities like firms, LLPs (Limited Liability Partnerships), AOPs (Association of Persons), BOIs (Body of Individuals), AJPs (Artificial Juridical Persons), estates of deceased persons, estates of insolvent persons, cooperative societies, business trusts, and investment funds.

These entities need to report their total income, claim deductions, pay taxes, and comply with the Income Tax Act, 1961.

Who can file ITR-5?

The ITR-5 form is applicable to a wide range of taxpayers, including:

• Firms
• Limited Liability Partnerships (LLPs)
• Association of Persons (AOPs)
• Body of Individuals (BOIs)
• Artificial Juridical Persons (AJPs) under Section 2(31)(vii)
• Local Authorities under Section 2(31)(vi)
• Representative Assessees under Section 160(1)(iii) or (iv)
• Cooperative Societies
• Registered Societies (under the Societies Registration Act, 1860, or any state law)
• Trusts (except those that need to file ITR-7)
• Estate of deceased individuals
• Estate of insolvent persons
• Business Trusts (Section 139(4E))
• Investment Funds (Section 139(4F))

If you fall under any of the above categories, you have to use ITR-5 for filing tax. You can file ITR 5 using the official government portal or a third-party income tax software.

Who cannot file ITR-5?

While ITR 5 covers a broad range of taxpayers, it is not meant for:

• Individuals
• Hindu Undivided Families (HUFs)
• Companies
• Taxpayers required to file ITR-7 (under Sections 139(4A), 139(4B), 139(4C), 139(4D))

So, the ITR-5 form is not for you if you’re an individual taxpayer or a company.

Key Updates in ITR-5 for FY 2025-26

The Income Tax Department updates the ITR forms regularly in order to make sure these address the current law and financial needs. In ITR-5, a number of significant changes are introduced in AY 2026-27:

• Capital Gains Split Removed: The earlier requirement to bifurcate capital gains based on the July 23, 2024, transfer date has been removed, simplifying capital gains disclosure.
• New Tax Regime Detailed Disclosure (Section 115BAC): Taxpayers must now disclose whether they have opted for the new tax regime along with additional details such as Form 10‑IEA filing, prior‑year option, and regime switching history directly in ITR‑5.
• Revised Return Deadline Extended: The deadline for filing a revised return has been extended to March 31, 2027.
• Separate Reporting of F&O Transactions: ITR‑5 now requires separate disclosure of Futures & Options (F&O) turnover and income, improving clarity in derivative reporting.
• MSME Interest Disallowance Reporting Added: New disclosure requirements introduced for interest disallowance under MSME Act in Part A‑OI.
• Inclusion of New Business Provision (Section 44BBD): A new presumptive taxation provision (Section 44BBD) has been incorporated into ITR‑5 reporting.
• Expanded Presumptive Taxation Disclosures: Entities opting for presumptive taxation (e.g., Sections 44AD/44ADA etc.) must now provide additional details on turnover and transactions.
• Partnership Interest and Remuneration Disclosure: Schedule IF now requires separate reporting of interest and remuneration due or received from partnership firms.

These updates are aimed at transparency, compliance, and simplicity of verification, and hence, it becomes even more important that entities keep proper records.

Audit Report Filing Along with ITR-5

Some taxpayers who file ITR-5 also have to file an audit report under provisions such as Sections 44AB, 92E, 10A, 80-IA, and more.

The most important thing is that the audit report should be submitted in a digital format, prior to the due date of the return. It also needs information like the acknowledgment number and UDIN (Unique Document Identification Number).

Verification and Compliance

You should also fill out the verification document when filling in ITR-5:

• Cross out the irrelevant.
• Make sure that the signature on the return indicates the name or position of the individual who signed it.

Remember: Any false statement will be subject to a punishable offence under Section 277 of the Income Tax Act, which attracts imprisonment and fines.

Due Date For Filing ITR-5 for FY 2025-26

The last date to file ITR-5 for non-audit cases is August 31, 2026. For audit cases, it is October 31, 2026.

In cases where the assessee is also required to furnish a transfer pricing report in Form 3CEB under Section 92E, the deadline is November 30, 2026. To avoid late filing fees under Section 234F, interest liabilities under Section 234A, and other penalties, it is advisable to complete the filing process well before the respective deadlines.

Wrapping Up

The ITR-5 Form is suitable for a broader range of taxpayers. Be it an LLP, AOP, BOI, cooperative society, or a business trust, this type makes your income, deductions, and taxes reported in the right way.

According to the revision for AY 2026-27, all should know about the removal of capital gains split reporting and the new mandatory disclosure for the choice between old and new tax regimes under Section 115BAC.

Therefore, in case you fall under any of the categories required to file ITR-5, it is advisable to ensure that you have your documents ready before the deadline. Proper compliance now will save you unnecessary stress later.

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