Itr 5

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2012 Hi Friends,

is it compalsary to fill-up the balance sheet and profit & Loss accoun in ITR 5 of a Co Op society please reply ASAP.

Nitesh Parmar

Nitesh Parmar (Expert)
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27 September 2012 In case of e-filing not Required to file balance sheet and P&L

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2012 thanks Sir, now all the returns are paper less return but i think it doesn't mean that the balance sheet and profit & loss account can be kept blank.
i think it should not be kept blank but i want to know that what would be the implication in income tax and in scrutiny if we keep it blank.

Please Reply ASAP.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 Yes, it is necessary to fill out the balance sheet and profit & loss account in **ITR-5** for a Co-operative Society, and here’s why:

### 1. **Requirement for ITR-5**

**ITR-5** is used by a variety of entities including:
- Partnership firms
- Association of Persons (AOPs)
- Body of Individuals (BOIs)
- Co-operative societies
- Other similar entities

For Co-operative Societies filing ITR-5, it is mandatory to provide a detailed balance sheet and profit & loss account. This is essential for a few reasons:

- **Compliance with Reporting Standards**: The Income Tax Act requires that all entities maintain and report accurate financial records. This includes providing a balance sheet and profit & loss account to reflect the financial position and performance of the entity.

- **Assessment and Scrutiny**: In case of an income tax scrutiny or assessment, the authorities will review the financial statements. Incomplete or blank financial statements may lead to questions, discrepancies, or even adverse implications.

### 2. **Implications of Keeping Balance Sheet and P&L Account Blank**

If you leave the balance sheet and profit & loss account blank:

- **Potential Penalties**: The Income Tax Department could view the incomplete filing as non-compliance, which may lead to penalties or other actions.

- **Assessment Issues**: In the event of a scrutiny or assessment, the lack of financial details may lead to complications or adverse findings, impacting the final assessment.

- **Delayed Processing**: Incomplete returns can delay the processing of your return and any associated refunds.

### 3. **Filing Complete Financial Statements**

To avoid these issues:

- **Complete the Balance Sheet**: Provide details of the assets, liabilities, and capital of the society. Ensure that all figures are accurate and match with the financial records of the society.

- **Complete the Profit & Loss Account**: Include all sources of income, expenditures, and other relevant details. This will give a clear picture of the society's financial performance.

- **Attachments and Verification**: Ensure that the financial statements align with the society's books and records. Any discrepancies should be addressed before submission.

### 4. **Summary**

For a Co-operative Society filing ITR-5, filling out the balance sheet and profit & loss account is not only mandatory but crucial for ensuring compliance and accurate assessment. Keeping these sections blank can lead to complications, penalties, and delays.

It’s important to ensure that these sections are completed with accurate and up-to-date financial information to avoid any issues with the Income Tax Department.