The five Khands mentioned in Jap Ji are  1) Dharam 2) Gyan 3) Saram 4) Karam 5) Sach Realm, stage.  Khands are the spiritual Realms that our soul progresses through on the way to Truth consciousness when committed to the path of Bandgi. There are five phases of Bandgi:-
1. DHARAM KHAND (Stage of pursuing divine union).  When we realizes that the objective of life is to achieve salvation and switch to doing Paath (reading religious texts) and Pooja (showing devotion).

2. GYAN KHAND (Stage of practicing divine knowledge).  When we listen to GurBani, accept GurBani and put it into practice in our daily life we convert divine knowledge into our own personal divine wisdom. 

3. SARAM KHAND (Stage of making spiritual effort).  When we start to work really hard to realize the objective of life – salvation and dedicate our self to the Gur and Guru with full commitment, belief, faith, trust, devotion and love.  In short, we surrender our self completely to the Gur and Guru and dedicate our self to Naam Simran.

4. KARAM KHAND (Stage of receiving grace).  When we get the Gur Parsaad – the eternal blessings and eternal grace, then all of our Bajjar Kapaats – divine doors are opened.  We enter into the Samadhi and then into Sunn Samadhi during our long sessions of Naam Simran.  We are accepted as a Suhaagan of Akal Purakh and our Bhagti account opens in the Dargah of Akal Purakh – this is a very high spiritual stage.  This is when the real Bandgi starts and the Panj Doots and desires start to come under our control.  The real fight with Maya starts and eventually with Gur Parsaad we are able to win over Maya and our mind.  Naam goes into our Rom-Rom.  Our Dassam Duaar opens and a direct and permanent connection is formed with Akal Purakh. 

5. SACH KHAND (Stage of Ultimate Truth).  When we win over Maya and reach the salvation stage.  We become Nirbhao and Nirvair – single vision – Ik Drisht and fearless.  We can see, hear, speak, deliver and serve the complete truth, then our Bandgi is considered as completed by Akal Purakh and we are given the Gur Parsaad of Sada Suhaag (Supreme State) and we become a Sada Suhaagan, inseparable from Akal Purakh.  At this stage Akal Purakh gives us all of the eternal treasures and authorizes us to give this Gur Parsaad of eternal treasures to the Sangat.  We become Amrit Ka Daata (giver of Amrit).  We become Bandgi Ka Daata and Seva Ka Daata (giver of the gifts of Bandgi and Seva).  We become Gur Parsaad Ka Daata (giver of Gur Parsaad) and we are then absorbed in the service of these eternal treasures by helping others do Bandgi and to achieve salvation.