ITR-5 Filing Services for firms, LLPs, AOPs, and BOIs.
Accurate and timely ITR-5 filing for partnership firms, Limited Liability Partnerships, Association of Persons, and Body of Individuals — with complete financial statement preparation, Section 40(b) remuneration compliance, tax audit coordination, and partner income allocation by ICAI-registered Chartered Accountants in Mumbai.
ITR-5 is filed by entities that are neither individuals, HUFs, companies, nor trusts — covering partnership firms, LLPs, AOPs, BOIs, and estates of deceased persons. It is one of the more technically demanding income tax returns, requiring a full set of financial statements, precise Section 40(b) partner remuneration and interest computations, tax audit coordination where applicable, and allocation of income among partners or members.
For partnership firms and LLPs, incorrect treatment of partner remuneration and interest is one of the most common triggers for income tax notices. Section 40(b) prescribes strict limits on the deductibility of salary, bonus, commission, and interest paid to partners — and amounts exceeding these limits are added back to taxable income, increasing the firm's tax liability. Our CA team ensures every such computation is audit-ready and defensible.
We serve trading firms, professional partnerships, real estate LLPs, family business partnerships, and AOPs across Mumbai and India. Beyond ITR-5 filing, we assist with partner ITR-3 filing for their share of remuneration and interest, Section 10(2A) profit exemption verification, advance tax planning for the firm, and notice response — providing end-to-end entity tax compliance under one roof.
What's Included in ITR-5 Filing
Financial Statement Preparation
Profit and Loss account and Balance Sheet for the firm or LLP — mapped correctly to the ITR-5 financial statement schedules required by the income tax portal.
Section 40(b) Compliance
Computation of allowable partner remuneration and interest within Section 40(b) limits — ensuring correct disallowance of excess amounts to avoid notice-triggering additions.
Tax Audit Coordination (44AB)
Tax audit under Section 44AB where turnover or professional receipts cross prescribed thresholds — with Form 3CB and Form 3CD filed before the due date.
Partner Capital Account Maintenance
Preparation and verification of individual partner capital accounts — including opening balances, drawings, profit allocation, remuneration, and interest credited during the year.
Depreciation & Expense Deductions
Block-wise depreciation computation, business expense verification, and identification of all allowable deductions — with correct disallowance under Sections 40A and 43B.
Advance Tax & TDS Reconciliation
Advance tax computation for the firm, TDS credit reconciliation with Form 26AS and AIS, and matching of GST turnover with income declared in ITR-5.
Our ITR-5 Filing Process
Deed & Agreement Review
Review of partnership deed or LLP agreement — verifying partner remuneration, interest provisions, and profit-sharing ratios before computation begins.
Financial Statement Finalisation
P&L, Balance Sheet, and capital accounts prepared and finalised — with GST, TDS, and bank reconciliation completed before audit or filing.
Audit & Tax Computation
Tax audit (where applicable) completed with Form 3CB and 3CD, followed by complete income tax computation with Section 40(b) adjustments and advance tax review.
ITR-5 Filing
Accurate preparation and online filing of ITR-5 — all schedules populated, AIS cross-verified, and pre-filled data corrected before submission.
e-Verification & Acknowledgement
e-Verification by authorised partner, with ITR-V acknowledgement and a copy of the filed return shared within 24 hours of submission.
Why Choose NDS Advisors for ITR-5
Frequently Asked Questions
ITR-5 is filed by partnership firms, Limited Liability Partnerships (LLPs), Association of Persons (AOPs), Body of Individuals (BOIs), artificial juridical persons, and estates of deceased or insolvent persons. Companies use ITR-6, and trusts use ITR-7. ITR-5 covers all entities that are neither individuals, HUFs, companies, nor trusts filing under Sections 139(4A) to 139(4F).
Yes. Tax audit under Section 44AB is mandatory for partnership firms and LLPs if total sales or gross receipts exceed ₹1 crore (₹10 crore where cash transactions are below 5%) or if professional gross receipts exceed ₹50 lakh. The audit report in Form 3CB and Form 3CD must be filed before the ITR-5 is submitted.
Partnership firms and LLPs are taxed at a flat rate of 30% on total income, plus a surcharge of 12% where income exceeds ₹1 crore, and Health and Education Cess of 4%. Unlike companies, firms are not eligible for the concessional rate under Section 115BAB. Partner salaries and interest are deductible subject to Section 40(b) limits.
Section 40(b) limits deductible partner remuneration to: up to ₹3 lakh or 90% of book profit (whichever is higher) for the first ₹3 lakh of book profit, and 60% of book profit beyond that. Interest paid to partners is deductible up to 12% per annum. Amounts exceeding these limits are disallowed and added back to taxable income.
An LLP is taxed at 30% flat and is not eligible for the 22% concessional rate under Section 115BAA available to companies. However, the share of profit received by LLP partners is exempt from tax under Section 10(2A). This pass-through exemption makes LLPs tax-efficient for profit distribution compared to companies where dividends are taxed at the shareholder level.
For firms not subject to audit, the due date is 31 July. For those subject to Section 44AB audit, the due date is 31 October. Firms involved in international transactions subject to transfer pricing must file by 30 November. Late filing attracts penalties under Section 234F and forfeits the right to carry forward business losses.
No. The share of profit received by a partner from a firm assessed as such is exempt under Section 10(2A). However, partner salary, interest, bonus, and commission received from the firm are fully taxable as business income in the partner's individual ITR and must be reported under the appropriate head.
Required documents include the partnership deed or LLP agreement, audited P&L and Balance Sheet, Form 26AS and AIS, bank statements, GST returns, TDS certificates, fixed asset register, partner capital accounts, advance tax challans, and the prior year audit report and ITR-5. We share an entity-specific checklist at engagement start.
Your Firm's Compliance, Handled End-to-End
From partnership deed review to tax audit, ITR-5 filing, and partner ITR coordination — NDS Advisors is your complete firm tax compliance partner, every assessment year.
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