Flat 30% + Cess
Partnership firms and LLPs pay a flat 30% plus 4% Health and Education Cess (effective 31.2%). No slab benefits.
ITR-5 RETURN FILING
Itr5 Return Filing Registration
Complete tax return filing for partnership firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs) and other non-corporate entities. P&L, Balance Sheet, partner details, Section 40(b) compliance, AMT computation and tax audit coordination.
DedicatedExpert Assistance
30% + CessFlat Rate (Firms/LLPs)
Sec 40(b) · AMTKey Compliance
FIRMS · LLPs · AOPs · BOIs
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SAMPLE
Tax Filing / TAN Certificate
Income Tax Department — sample acknowledgement / certificate
Illustrative sample. Your official certificate is issued after approval.
01
Non-Corporate Entities
Firms, LLPs, AOPs, BOIs, cooperative societies — not individuals or companies
02
Full Books Required
P&L and Balance Sheet mandatory — no presumptive option for LLPs
03
Section 40(b)
Partner remuneration and interest limits must be correctly computed
04
AMT · 115JC
Alternate Minimum Tax at 18.5% — compare with regular tax
OVERVIEW
What is ITR-5?
ITR-5 is the income tax return form for entities that are not individuals, not HUFs and not companies. It is mandatory for partnership firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), cooperative societies, local authorities and artificial juridical persons.
Unlike simplified forms, ITR-5 requires a complete Profit & Loss Account, Balance Sheet, partner-wise details (share of profit, remuneration, interest on capital), capital gains schedules, Chapter VI-A deductions and Alternate Minimum Tax (AMT) under Section 115JC. Partnership firms and LLPs are taxed at a flat 30% plus 4% cess (effective 31.2%). LLPs cannot use ITR-4 even if turnover is within presumptive limits.
Form
ITR-5
Applicable To
Firms · LLPs · AOPs · BOIs · others
Tax Rate (Firms/LLPs)
Flat 30% + 4% cess
Key Schedules
Partners · P&L · BS · AMT
WHO MUST FILE
Entity Types
| Entity | ITR-5? | Key Notes |
|---|---|---|
| Partnership Firm | Yes | Flat 30% + cess; Sec 40(b) limits; deed relevant for rights |
| LLP | Yes | Flat 30% + cess; cannot use ITR-4; full books required |
| AOP / BOI | Yes | Slab or maximum marginal rate depending on share determinacy |
| Cooperative Society | Yes | Special slabs; Sec 80P; optional 115BAD regime |
| Individual / HUF | No | Use ITR-1 / 2 / 3 / 4 |
| Company | No | Use ITR-6 (or ITR-7 if Sec 11 exemption) |
TAXATION
Key Rules for Firms & LLPs
Section 40(b) Remuneration
Partner remuneration is allowed only within prescribed limits and conditions. Excess is disallowed in the firm’s hands.
Interest on Capital
Interest to partners is generally capped at 12% per annum under Section 40(b). Excess is disallowed.
Partner’s Share Exempt
Share of profit received by partners is exempt under Section 10(2A). Remuneration and interest are taxable in partners’ hands.
DOCUMENTS
What You Need
1. Profit & Loss Account
Complete P&L for the financial year with all income and expense heads.
2. Balance Sheet
Assets, liabilities and capital as on year-end.
3. Partner Details
Names, PANs, share ratios, remuneration, interest on capital and capital accounts.
4. Partnership Deed / LLP Agreement
For verifying authorised remuneration and interest terms under Section 40(b).
5. Form 26AS & AIS
Tax credit and Annual Information Statement for reconciliation.
6. Audit Report (if any)
Form 3CA/3CB + 3CD when Section 44AB tax audit applies.
PROCESS
How We File Your ITR-5
1. Books Finalisation
P&L and Balance Sheet reviewed; books checked for completeness and consistency.
2. Section 40(b) Working
Partner remuneration and interest computed within statutory limits; excess identified.
3. AMT & Schedules
AMT under Section 115JC computed; partner schedule and other schedules prepared.
4. Audit Coordination (if needed)
If Section 44AB applies, coordinate with the appointed auditor for 3CA/3CB + 3CD.
5. e-File & e-Verify
Return filed on the portal; e-verification support and advance tax guidance as needed.
TAX AUDIT
Section 44AB for Firms & LLPs
When It Applies
When turnover or receipts exceed Section 44AB thresholds (including the higher limit for low cash intensity where applicable).
Forms
Form 3CA or 3CB plus Form 3CD must be filed. Audit opinion is by an independently appointed professional.
Due Date
Audit cases typically have a later ITR due date (e.g. 31 October). Confirm current year dates on the portal.
LLP Statutory Audit
Separate from tax audit: LLP Act may require statutory audit if turnover > ₹40 lakh or contribution > ₹25 lakh.
WHY CHOOSE US
Why Corporate Mart for ITR-5?
Section 40(b) Done Right
Remuneration and interest computed within limits so the firm’s return and partners’ returns stay consistent.
AMT & Full Schedules
AMT under 115JC and partner schedule prepared so nothing material is missed.
Audit Coordination
When 44AB applies, we work with your appointed auditor so the report and ITR align.
26AS / AIS Recon
Tax credits matched to reduce mismatch notices and keep the return notice-safe.
Books → 40(b) → AMT → Audit (if any) → e-File → e-Verify
FAQ
Frequently Asked Questions
Partnership firms, LLPs, AOPs, BOIs, cooperative societies, local authorities and artificial juridical persons. Individuals, HUFs and companies use other forms (ITR-1/2/3/4 or ITR-6/7).
No. Presumptive schemes under 44AD and 44ADA exclude LLPs. All LLPs must file ITR-5 with full books, P&L and Balance Sheet.
A flat 30% plus 4% Health and Education Cess (effective 31.2%). There are no slab rates for firms and LLPs.
No. Share of profit from a firm is exempt in the partner’s hands under Section 10(2A). Remuneration and interest from the firm are taxable in the partner’s individual return.
It limits the amount of remuneration and interest that can be paid to partners and allowed as a deduction in the firm’s computation. Excess is disallowed. Interest is generally capped at 12% p.a.
Alternate Minimum Tax applies to certain non-corporate assessees at 18.5% of adjusted total income. The firm must compute both regular tax and AMT and pay the higher amount.
Typically 31 July for non-audit cases and a later date (e.g. 31 October) for audit cases. Confirm the current assessment year dates on the Income Tax portal.
Yes. Partners file their individual returns (ITR-2 or ITR-3 as applicable) reporting remuneration, interest and any other income. Share of profit is exempt under Section 10(2A).
