ITR-5 Filing (Firms & LLPs)
The return for partnership firms, LLPs and associations of persons, prepared from your finalised accounts.
ITR-5 is the return filed by partnership firms, limited liability partnerships, associations of persons and bodies of individuals. It reports the entity’s own income, and it feeds directly into what each partner or member reports in their personal return.
The two computations have to be consistent. What a firm claims as a deduction for partner remuneration is what the partner declares as income, and a mismatch between the two is straightforward for the department to identify.
What this costs
Assisted Tax Filing
₹5,604 plus GST
- Document collection & review
- ITR form identification
- Income computation
- Standard deduction claimed, along with 80C, 80D and 80TTA
- Your liability computed, with a clear statement of tax payable or refund due
- ITR preparation & filing
- ITR acknowledgement copy
Who files ITR-5
- Partnership firms, whether registered or unregistered
- Limited liability partnerships
- Associations of persons and bodies of individuals
- Estates of a deceased person, and of an insolvent
- Business trusts and investment funds
- Co-operative societies and local authorities, in specified cases
The partner payment limits
Remuneration to working partners is deductible only within the ceiling in Section 40(b), computed on book profit, and only where the partnership deed authorises it and quantifies it or the manner of computing it.
Interest on partner capital is deductible only up to the rate the Act permits, and again only where the deed provides for it. Amounts beyond these limits are added back to the firm’s income, while remaining taxable in the partner’s hands unless the position is managed carefully.
What the partners then report
- Share of profit from the firm is exempt in the partner’s hands, since the firm has been taxed on it
- Remuneration received is taxable, to the extent allowed as a deduction to the firm
- Interest on capital is taxable on the same basis
- Partners file ITR-3, reporting these amounts alongside their other income
LLP-specific points
An LLP files ITR-5 and is taxed like a firm. It is outside the presumptive schemes under Sections 44AD and 44ADA, which are available only to individuals, Hindu undivided families and partnership firms.
An LLP also faces the alternate minimum tax where it claims certain deductions, computed on adjusted total income, with credit carried forward in the same way as MAT credit for companies.
How we handle it
- 1 Reviewing the deed We confirm the remuneration and interest clauses support the deductions claimed, since a silent deed defeats them entirely.
- 2 Finalising accounts Books are closed and partner capital accounts reconciled.
- 3 Computing allowable payments Remuneration and interest are worked out within the statutory limits based on book profit.
- 4 Reconciling Turnover is reconciled against GST returns and Form 26AS.
- 5 Filing the entity return ITR-5 is prepared and filed under digital signature where required.
- 6 Aligning partner returns Each partner’s share, remuneration and interest are carried into their own return consistently.
Frequently asked questions
Can an LLP use presumptive taxation?
No. Sections 44AD and 44ADA are available to individuals, Hindu undivided families and partnership firms, but LLPs are specifically excluded.
Is a partner taxed on their share of profit?
No. The share of profit is exempt in the partner’s hands because the firm has already paid tax on it. Remuneration and interest received are taxable.
What if the deed does not authorise remuneration?
The firm cannot deduct it. The deed should be amended, though an amendment generally operates prospectively rather than for earlier years.
Does an unregistered firm file the same return?
Yes. Registration with the Registrar of Firms affects the firm’s ability to sue, not its income tax position. Both registered and unregistered firms file ITR-5.
Is a digital signature required?
For an LLP, and for any entity subject to tax audit, yes. Other firms may verify electronically, but digital signature is required where the audit provisions apply.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about ITR-5 Filing (Firms & LLPs)
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
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