If your annual income exceeds ₹1 crore, be prepared for more comprehensive reporting while filing your Income Tax Return (ITR) this year. The Income Tax Department has made it mandatory for high-income taxpayers to declare detailed information about their assets and liabilities under Schedule AL (Assets and Liabilities) in the ITR.
✅ Who Needs to Disclose Assets?
The disclosure rule applies to:
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Individuals with annual income above ₹1 crore
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Those filing ITR-2 or ITR-3
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Business owners also need to report assets not reflected in their balance sheets
However, taxpayers filing ITR-1 or ITR-4 are not required to fill Schedule AL.
🏠 What to Declare Under Immovable Assets
You need to provide complete details of any immovable property owned as of 31st March 2025, including:
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Type of property: plot, flat, or house
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Purchase cost
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Address/location
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Mode of acquisition (purchase, gift, inheritance)
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If under loan or mortgage, the debt must also be disclosed
💎 Movable Assets to Include
You are required to list all your movable assets, such as:
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Cash in hand
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Bank balances and fixed deposits
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Shares and mutual funds
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Vehicles, jewellery (gold/silver), paintings
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Insurance policies with surrender value
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Loans or advances given to others
📈 Inherited and Gifted Assets
If you’ve received any asset (property, jewellery, shares, etc.) via inheritance or as a gift, you must:
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Declare it in your ITR
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Mention the market value as of specific dates:
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For unlisted shares: value as on 1 April 2001
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For listed shares: value as on 31 January 2018 (for grandfathering benefit)
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This helps in proper capital gains calculation in the future.
🧾 Why This Rule Matters
The Income Tax Department has introduced this requirement to:
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Detect inconsistencies between reported income and asset accumulation
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Improve transparency and curb tax evasion
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Strengthen compliance among high-net-worth individuals
⚠️ Penalties for Non-Disclosure
Failing to declare the required information may lead to:
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Scrutiny or notices from the Income Tax Department
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Penalties under various sections of the Income Tax Act
🔚 Conclusion
If your income crosses ₹1 crore, make sure to compile all asset-related details before filing your ITR this year. Proper documentation and reporting will not only ensure compliance but also protect you from future legal complications.
