ITR-5
What is ITR 2 Form?
This return is applicable for Individual and Hindu Undivided Family (HUF) not having Income under the head Profits and Gains of Business or Profession and who is not eligible for filing ITR-1.
What is ITR?
An Income Tax Return (ITR) is a document used by taxpayers to report details about their income earned and the corresponding tax liability to the income tax department. It serves as a formal declaration of an individual or entity’s financial information, ensuring transparency and compliance with tax regulations.
Limit for Senior Citizens is INR 3 lakhs and for Super Senior Citizens INR 5 lakhs.
Who can use ITR 2 Form?
An individual who;
- has income from salary/ pension
- has income from more than one house property
- is a non-resident in India during the previous year
- is a director in a company
- has held any unlisted equity shares at any time during the previous year
- has any asset (including financial interest in any entity) located outside India
- has signing authority in any account located outside India
- has income from any source outside India
- is a person in whose case tax has been deducted u/s 194N
- is a person in whose case payment or deduction of tax has been deferred on ESOP
- who has any brought forward loss or loss to be carried forward under any head of income
Late Fee and Penalty for late Filing of ITR-2
Late filing of income tax returns can result in various penalties, depending on your total income.
- Late fee of Rs. 5000 will be levied on Individuals with a total income exceeding Rs. 5 lakhs, while those with income below this threshold will incur a reduced late fee of Rs. 1,000. However, Individuals having total income up to Rs. 2.5 lakhs are not required to pay any late fee for late filing of the return. For Senior Citizens, this limit is Rs. 3 lakhs and for Super Senior Citizens Rs. 5 lakhs.
- Additionally, if you owe taxes and fail to file the return by the due date, you will be liable for additional interest at a rate of 1% per month until you submit the return.
- In more severe cases, penalties can be imposed for underreporting or misreporting of income. Underreporting may lead to penalties of up to 50% of the tax underreported, while misreporting can result in penalties of up to 200% of the misreported tax amount.
- Furthermore, repeated failure to file tax returns despite reminders from tax authorities may lead to prosecution procedures. This could result in imprisonment ranging from three months to seven years, depending on the outstanding tax liabilities.
It is crucial to file your tax returns promptly and accurately to avoid these legal and financial consequences.
How we can assist you?
We provide valuable assistance in filing your ITR-2 return. We start by helping you select the appropriate form based on your income sources, ensuring accuracy in filing.
We meticulously calculate your tax liability, perform error checks, and prioritize timely filing to reduce the risk of penalties or tax notices. If eligible, we assist in processing your income tax refund efficiently.
Our team of tax experts is available to address your queries and provide guidance throughout the process. We also keep you updated on tax law changes and deadlines, ensuring your compliance with the latest regulations. With our secure platform, you can trust us to safeguard your financial data while simplifying your ITR-2 filing experience.
FAQs
What is ITR-5 Form?
ITR-5 is the Income Tax Return form in India designed for firms, Association of Persons (AOP), and Body of Individuals (BOI) other than LLPs (Limited Liability Partnerships).
Who should file ITR-5?
If you are part of a firm, LLP, AOP, BOI, or any other artificial juridical person, you should file your income tax return using Form ITR-5
What documents are required for filing ITR-5?
Documents such as PAN card, Aadhaar card, financial statements, profit and loss account, balance sheet, and other business-related documents are needed.
How are profits and losses divided among partners or members in ITR-5?
Profits and losses are divided among partners or members based on the partnership deed or agreement. Each partner or member reports their share in the individual capacity.
How to e-verify the ITR-5 form?
: ITR-5 can be e-verified using methods like Aadhaar OTP, EVC (Electronic Verification Code), or by sending a signed ITR-V to the Centralized Processing Centre (CPC).
Can ITR-5 be used for reporting income from salary or house property?
No, ITR-5 is specifically for firms, AOPs, and BOIs. Individual taxpayers with income from salary or house property should use the appropriate individual form.
What is the treatment of business losses in ITR-5?
Business losses in ITR-5 can be set off against income from other sources within the same assessment year. Any unadjusted losses can be carried forward for future set-off.
How are donations made by the firm treated in ITR-5?
Donations made by the firm may be eligible for deductions under Section 80G. Details of such donations should be provided in the relevant schedules.
Can ITR-5 be used to report income from a foreign business or assets?
Yes, income from a foreign business or assets should be reported in the relevant schedules of ITR-5. Additional disclosure requirements may apply.
How are penalties calculated for late filing of ITR-5?
Late filing of ITR-5 may attract penalties under Section 234F. The penalty amount varies based on the delay in filing the return.
Can a partnership firm or AOP claim a deduction for interest on business loans in ITR-5?
Yes, interest on business loans can be claimed as a deduction in the relevant schedules of ITR-5. Provide accurate details of the interest paid.
Can ITR-5 be filed without a digital signature?
Yes, ITR-5 can be filed without a digital signature. In such cases, the taxpayer needs to e-verify the return using other methods.
How are business losses adjusted against income in ITR-5 if there is a change in the ownership of the business?
In case of a change in business ownership, losses incurred can be carried forward only if there is a continuity of at least 51% ownership. Report the details in the relevant schedules.
Can ITR-5 be filed by an individual or Hindu Undivided Family (HUF)?
No, ITR-5 is specifically for firms, AOPs, and BOIs. Individuals and HUFs should use the appropriate individual or HUF form for filing their returns.
Can ITR-5 be filed by an individual or Hindu Undivided Family (HUF)?
No, ITR-5 is specifically for firms, AOPs, and BOIs. Individuals and HUFs should use the appropriate individual or HUF form for filing their returns.
