2 weeks ago
Taxpayers Above ₹1 Crore Must Disclose Assets Before Deadline
Some taxpayers earning more than ₹1 crore have an extra section to complete in their tax return.
This section is called Schedule AL.
It asks them to list what they own and what they owe.
Items can include houses, land, cars, jewellery, shares and cash.
Loans taken for property or vehicles must also be reported.
The information should describe assets and liabilities as of 31 March 2026.
Assets should generally be shown at their cost, including eligible improvement costs.
The rule is intended to improve financial transparency and help prevent tax evasion.
Incorrect or incomplete information may lead to notices from the tax department.
Individuals and Hindu undivided families with income above ₹1 crore must file Schedule AL with their income tax return.
Schedule AL requires disclosure of assets and liabilities held at the end of the financial year.
Reportable assets include land, buildings, vehicles, jewellery, archaeological collections, shares, securities and cash in hand.
Liabilities such as loans for property and vehicle purchases must also be disclosed.
Non-residents and not ordinarily resident individuals must report only assets located in India.
- Who
- Individuals and Hindu undivided families with income above ₹1 crore; certain companies filing ITR-6 also report assets and liabilities through separate schedules.
- What
- Eligible taxpayers must disclose specified assets and liabilities in Schedule AL while filing their income tax returns.
- Where
- The disclosure is made in the relevant Indian income tax return, including ITR-2 or ITR-3; non-residents and not ordinarily resident individuals report assets situated in India.
- When
- The return must be filed before the stated 31 August deadline, with assets and liabilities reported as of 31 March 2026.
- Why
- The tax department says the requirement promotes financial transparency and helps curb tax evasion.
Key facts
- Income threshold
- The article says Schedule AL applies when total income exceeds ₹1 crore; it also highlights business income above ₹1 crore.
- Applicable taxpayers
- Individuals and Hindu undivided families are covered, including those earning through business, profession, salary, capital gains or other sources.
- Relevant forms
- Schedule AL can be filed through ITR-2 and ITR-3, depending on the taxpayer’s income profile.
- Assets to disclose
- Land and buildings, vehicles, jewellery, archaeological collections, shares, securities, cash in hand and other valuable possessions.
- Liabilities to disclose
- Loans taken for property and loans taken for vehicle purchases.
- Valuation basis
- Assets must be disclosed at cost, with costs of improvement also reportable.
- Company reporting
- Companies filing ITR-6 furnish asset and liability details through Schedule AL-1 and Schedule AL-2.
Quotes
Tax department
Official from the Indian tax authority
“Schedule AL applies to Individuals and Hindu Undivided Families (HUFs) who are required to file this return and whose total income exceeds Rs. 1 crore in the financial year. This schedule mandates disclosure of details related to assets and liabilities held at the end of the year”
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Sources
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