The Income Tax Department has released the ITR-5 Form for AY 2025-26 on May 1, 2025. This form is mainly for firms, LLPs, AOPs, BOIs, AJPs, business trusts, investment funds, and estates of deceased or insolvent individuals. It is not meant for individual taxpayers.
There are a few important changes in this year’s form. One major update is in the capital gains section. Now, taxpayers must report gains based on the date of transfer—whether it happened before or after July 23, 2024. This change helps apply the right tax rules based on the Finance Act, 2024.
Another change is related to share buybacks. From October 1, 2024, taxpayers can claim capital losses on share buybacks, as long as they had already reported related dividend income earlier. This corrects a mismatch in how buybacks were taxed earlier.
A new section called 44BBC has been added for cruise ship businesses. These businesses can now use a simpler method called presumptive taxation, which saves time and effort.
The form also asks taxpayers to mention the exact TDS section code in Schedule-TDS. This will help the tax department match TDS claims more accurately.
Due Dates for ITR-5 Form for AY 2025-26
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July 31, 2025 – If audit is not required
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October 31, 2025 – If audit is required
The ITR-5 Form for AY 2025-26 includes important changes that can benefit firms and other eligible entities. Make sure to review the form carefully and file your return before the deadline. For more info, visit the Income Tax e-Filing Portal.
Frequently Asked Questions (FAQs)
1. Who can file ITR-5 Form for AY 2025-26?
ITR-5 can be filed by firms, LLPs, business trusts, investment funds, and similar entities.
2. Can individuals file ITR-5 Form?
No, individuals must use ITR-1, ITR-2, or ITR-3.
3. What are the due dates for ITR-5 filing?
- July 31, 2025 – If no audit is required.
- October 31, 2025 – If audit is required.
4. What is Section 44BBC?
It applies to cruise ship businesses, allowing them to use a simpler taxation method.
