Who should File Schedule AL in ITR?
Generally, a taxpayer carrying on business or profession must file details of assets and liabilities through a Balance Sheet in the Income Tax Returns.
Separately, in certain specific cases, even for salaried individuals, the ITR has made it mandatory for taxpayers to disclose their assets and liabilities at the end of the year through the AL Schedule in ITR.
To monitor assets acquired and income earned, the tax department has mandated that all assets and their corresponding liabilities be disclosed in the income tax return if taxpayers earn more than INR 50 lacs from any source.
All individuals and HUFs having annual taxable income exceeding Rs 50 lakhs have to choose ITR-2
What are the assets and liabilities required to be reported under Schedule AL?
- Immovable property
- Financial assets
- Movable property
- Interest held in the assets of a firm or an association of persons (AOP)
A few guidelines you must comply with while filing Schedule AL:
The term ‘assets’ includes land & buildings along with immovable assets
Financial assets include shares, securities, and deposits; loans and advances; insurance policies; cash in hand; jewellery; vehicles; movable assets such as yachts, aircraft, and boats; and bullion.
You must disclose your assets at cost. Also, you can include any cost of improvement incurred on the asset.
Non-residents and not ordinarily resident individuals must provide details of their assets in India.
Jewellery includes ornaments made of gold, silver, platinum, any other precious metal, or an alloy made of one or more of such precious metals. It may or may not contain precious or semi-precious stones.
Details of precious or semi-precious stones, whether or not set in any utensil, furniture, or other apparel.
If the asset is a gift or will, the cost of such an asset must be declared as per the cost provided by the previous owner plus the cost of any improvement incurred by the previous owner.
In the case of liabilities, all liabilities incurred in relation to the assets should be reported such as:
-Housing loan
-Vehicle loan
-Personal loan
- Other loan
Non-disclosure of the AL schedule may lead to defective notices. So, if your income is > 50 Lakhs, AL is mandatory to file in ITRs.
Executive Student at Company Secretary of India. LLB . Bcom. Fitness science.
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