If you are a partnership firm, LLP, Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP), business trust, or cooperative society, the ITR-5 form is your gateway to filing income tax returns. The Income Tax Department has introduced some important changes for the Assessment Year 2025-26 that every taxpayer in this category should know.
Who Can File ITR-5
The ITR-5 form is designed specifically for certain types of entities, so it does not apply to individuals, Hindu Undivided Families, companies, or charitable trusts. It specifically caters to:
- Partnership firms
- Limited Liability Partnerships
- AOPs and BOIs
- AJPs
- Business trusts such as REITs and InvITs
Cooperative societies and a few specific trusts that are not required to file under ITR-7
Key Changes for AY 2025-26
The form now comes with updates that make it easier to file accurately, stay transparent, and meet all compliance requirements.
Here are the most significant changes:
- Capital Gains Reporting
You now need to report capital gains separately for transactions made before and after 23 July 2024, as the tax rates have changed. For example, certain long-term capital gains after this date are taxed @12.5%. - Buyback Losses
Losses from buyback of shares can only be claimed if the corresponding dividend income is declared under the “Income from Other Sources” section. - Section 44BBC Presumptive Taxation
If you are a non-resident cruise ship operator, you can now simply tick a new checkbox to choose presumptive taxation, where 20% of your total passenger revenue will be taxed.
- Detailed TDS Reporting
You must now mention the exact TDS section code, improving reconciliation with Form 26AS and AIS. - Enhanced Entity Information
The form asks for additional details such as LLP identification numbers, incorporation dates, two email addresses, and two mobile numbers. - Filing Deadline and Status Selection
A new dropdown lets you choose your filing deadline and declare whether you are filing on time or late. - Business Trust Identification
Business trusts now have the option to clearly state their category right within the form. - e-Pay Tax Option
A direct link for paying advance tax, self-assessment tax, or any outstanding demand is now integrated into the filing process.
Filing Deadlines
| Category | Original Due Date | Extended Due Date for AY 2025-26 |
| Without audit | 31 July 2025 | 15 September 2025 |
| With audit | 31 October 2025 | 15 September 2025 |
| With transfer pricing report | 30 November 2025 | 15 September 2025 |
Filing Process
- Get the ITR-5 utility from the Income Tax e-filing portal.
- Complete all the required schedules, such as capital gains and TDS.
- Validate the data and generate the required file
- Upload the file to the portal and finish the e-verification process within 30 days.
Staying informed about these updates can help you avoid last-minute surprises and penalties. If your entity falls under ITR-5, review the changes early and prepare your documentation in advance for a smooth filing experience.