What is ITR Filing?
ITR, also known as Income Tax Return, is a form which an assessee or a taxpayer has to file mentioning his income earned and the tax which is applicable to him to the Income Tax Department. Tax is extremely important for the development of the country for all the public expenditure and thus every person must file the tax which he has to. The Tax Department has declared and issued 7 different forms, namely ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7 till date. These forms are divided in accordance with the type and sources of income of the taxpayer, the amount of the income earned and the category the taxpayer belongs to, for example, individuals, HUF, Company, etc and are online ITR filing services
In India, it becomes necessary and mandatory for ITR filing online, if any of the following which is mentioned below are applicable to you. These conditions are:
If the gross annual income ranges from Rs. 2.5 lacs to Rs. 5 lacs, depending on the different age categories.
If there is more than one source of income such as house property, Capital gains, etc.
If in the financial year, you have invested and earned from foreign assets.
In case if the taxpayer is either a firm or a Company, the ITR has to be filled necessarily.
If you want to apply for a loan or visa, it is required
If there is a need to claim an income tax refund from the department.
What is ITR 5
ITR-5 is one of the types of an ITR filing which has been mentioned by the department. This type of Income Tax Return Filing is meant for firms, AOPs (Association of persons) and BOIs (Body of Individuals), LLPs, Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust and investment fund.
Any person being a firm, LLPs, AOP, BOI, artificial juridical person referred to the section 2(31)(vii), the estate of deceased, the estate of the insolvent, business trust and investment fund, cooperative society and the local authority can be used. Any person who has to file a return under the sections of 139(4A) or 139(4B) or 139(4C) or 139(4D), cannot and must not file this return.
The registration pROCess of ITR-5 Form?
The pROCedure for filing of the ITR-5 form is mentioned below:
Furnish the return electronically under the digital signature
Transmit the data in the return electronically and later submit the verification of the return.
After the return has been filed online, one copy of the form has to be duly signed by the assessee and sent to the address- Bag No. 1, Electronic City Office, Bengaluru–560500 (Karnataka) and the other copy has to be kept by the assessee for the record.
Those firms whose accounts are liable to audit have to furnish the return electronically under the digital signature.