Complete Tax Return Filing for Partnership Firms, LLPs & AOPs - Starting @ ₹4,999 Only
P&L Account. Balance Sheet. Partner Details. Section 40(b) Compliance. AMT Computation.
ITR-5 is the income tax return form for entities that are neither individuals/HUFs nor companies — a broad category that covers Partnership Firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOP), Bodies of Individuals (BOI), estates of deceased or insolvent persons, business trusts, and investment funds.
LLPs and partnership firms are taxed similarly in one respect — both pay a flat 30% on total income, plus applicable surcharge and cess — but diverge in the specific provisions layered on top. LLPs are subject to Alternate Minimum Tax (AMT) under Section 115JC wherever normal tax falls below 18.5% of adjusted total income, while partnership firms instead work within Section 40(b), which caps how much partner remuneration and interest the firm can actually deduct.
What unites the entities that file ITR-5 is really what they aren't — none of them are individuals, HUFs, or companies, each of which has its own dedicated form. If your organisation doesn't fit into one of those three categories, ITR-5 is very likely the form you need.
| Parameter | Details |
|---|---|
| Governing Rule | Rule 12 of the Income-tax Rules, 1962, read with Section 139(1) of the Income-tax Act, 1961 |
| Applicable To | Partnership firms (registered and unregistered), Limited Liability Partnerships (LLPs), Associations of Persons (AOP), Bodies of Individuals (BOI), estates of deceased or insolvent persons, business trusts, and investment funds |
| Not Applicable To | Individuals and HUFs, who use ITR-1/2/3/4, and companies, which use ITR-6 |
| Tax Rate — LLPs | A flat 30% on total income, plus applicable surcharge and a 4% Health & Education Cess |
| Tax Rate — Partnership Firms | Also a flat 30%, with partner remuneration and interest deductible only within the limits prescribed under Section 40(b) |
| AMT — Section 115JC | LLPs (and other non-corporate taxpayers claiming specified deductions) pay Alternate Minimum Tax wherever tax computed on normal income is less than 18.5% of adjusted total income |
| Verification Modes | DSC of a designated partner or authorised signatory, mandatory wherever the entity's accounts are subject to audit; EVC/Aadhaar-based verification otherwise |
ITR-5 requires the entity's Profit & Loss Account and Balance Sheet to be reported within the return, giving a complete financial picture of the firm, LLP, or association for the year.
A dedicated schedule captures every partner or member's PAN, capital account, and profit-sharing ratio, tying the entity's income to how it flows through to each partner or member.
For partnership firms, remuneration and interest paid to working partners are only deductible within the limits Section 40(b) prescribes — amounts beyond that get added back to taxable income.
LLPs (and other eligible entities) compute Alternate Minimum Tax under Section 115JC where it applies, with any resulting credit tracked under Section 115JD for use in future years.
Where turnover, receipts, or LLP-specific thresholds cross the Section 44AB (or LLP Act) audit requirement, the audit report feeds directly into the return's income computation.
Business losses and unabsorbed depreciation from current or earlier years are tracked within the return and correctly set off against current-year income where eligible.
ITR-5's eligibility test is entity type, not scale or profitability — every entity below files it for as long as it exists and has taxable income.
| Entity Type | Filing Requirement |
|---|---|
| Partnership Firms (Registered & Unregistered) | Must file ITR-5 every year regardless of registration status with the Registrar of Firms, reporting firm-level income alongside partner details |
| Limited Liability Partnerships (LLPs) | File ITR-5 every year, taxed at a flat rate, with AMT applicability assessed separately from the main income computation |
| Association of Persons (AOP) | A group of persons — not necessarily individuals — that comes together for a common purpose with the intention of earning income, taxed at the entity level via ITR-5 |
| Body of Individuals (BOI) | Similar to an AOP but consisting only of individuals; also files through ITR-5 |
| Local Authorities | Municipal corporations and similar local bodies file their income tax return through ITR-5 |
| Cooperative Societies | File ITR-5, subject to the distinct tax provisions and deduction entitlements that apply specifically to cooperative societies |
| Business Trusts | REITs and InvITs registered as business trusts file through ITR-5, subject to the specific pass-through taxation provisions applicable to them |
| Investment Funds | Category I and II Alternative Investment Funds file ITR-5 under the specific pass-through regime that applies to such funds |
A few prerequisites need to be in place before an ITR-5 filing can go through smoothly.
ComplianceBharo's ITR-5 filing package starts at ₹4,999as a professional fee for end-to-end assistance, covering P&L and Balance Sheet preparation, Section 40(b) computation, AMT assessment, and e-verification — the full inclusion list is shown in the pricing card above.
Where your final quote lands depends on a couple of factors specific to your entity: whether tax audit applies (bringing in coordination work with your auditor), and the number of partners or members whose details need to be captured and reconciled within the return. We confirm the exact scope and fee after reviewing your entity\'s financials and structure.
Here's the typical document checklist for an ITR-5 filing, grouped by what it covers.
Close the books for the financial year and finalise the Profit & Loss Account and Balance Sheet for the firm, LLP, or association.
Check turnover, receipts, and applicable thresholds under Section 44AB (or the LLP Act) to confirm whether a tax audit is legally required before filing.
Where audit applies, coordinate with the Chartered Accountant conducting it, ensuring the audit report is finalised well ahead of the ITR-5 due date.
Work out partner remuneration and interest paid, checking each against the limits prescribed under Section 40(b) before treating them as deductible.
Calculate Alternate Minimum Tax under Section 115JC where normal tax falls below 18.5% of adjusted total income, and track any resulting credit.
Submit the completed ITR-5 return on the e-filing portal, authenticated with the DSC of a designated partner or authorised signatory where mandated.
Where DSC-based filing applies, verification completes automatically on submission; otherwise, complete e-verification within 30 days to ensure the return is treated as validly filed.
Audit applicability drives the due date, and AMT credit has its own long carry-forward window worth planning around.
| Compliance Requirement | Applicable Date / Rate | Details |
|---|---|---|
| ITR-5 Filing — Non-Audit Entities | 31 July of the assessment year | Applies where turnover, receipts, and other thresholds do not cross the Section 44AB audit requirement |
| Tax Audit Report — Form 3CA/3CB-3CD | 30 September of the assessment year | Falls a full month ahead of the audit-linked ITR due date, since the return draws directly from the audited figures |
| ITR-5 Filing — Audit-Applicable Entities | 31 October of the assessment year | Applies wherever turnover, receipts, or other conditions cross the applicable audit threshold |
| Late Filing Fee — Section 234F | ₹1,000 where total income is up to ₹5 lakh; ₹5,000 where it exceeds ₹5 lakh | Levied automatically where the return is filed after the applicable due date but before 31 December |
| Tax Audit Default — Section 271B | 0.5% of turnover or gross receipts, capped at ₹1,50,000 | Applies where an entity liable for tax audit fails to get the audit done, or fails to furnish the audit report by the due date |
| AMT Credit Carry-Forward — Section 115JD | 15 assessment years | Excess AMT paid over normal tax in a year can be carried forward and set off in a future year when normal tax exceeds AMT, mirroring the MAT credit mechanism available to companies |
| Interest — Sections 234A / 234B / 234C | 1% per month or part thereof | Charged respectively for late filing with unpaid tax outstanding, a shortfall in advance tax paid, and deferred or short quarterly instalments |
Have questions about filing ITR-5 for your firm, LLP, or association? Let our experts help you figure out the right compliance plan.
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