Here's how to accurately declare assets in Schedule AL of your ITR
₹50 lakh have an additional task: declaring their assets. According to Income Tax (IT) laws, individual and Hindu Undivided Family (HUF) taxpayers with net income over ₹50 lakh must fill out details of their assets in Schedule AL (asset and liability) of ITR forms 2 or 3. This includes immovable property, financial assets, vehicles, art, sculptures, and corresponding liabilities.
Schedule AL was introduced in 2016 after the discontinuation of the wealth tax. Prakash Hegde, chartered accountant at Acer Tax & Corporate Services LLP, explains, “The government wanted a monitoring system to check if the value of a taxpayer’s assets corresponds to the income earned by them. Thus, Schedule AL was introduced." To help taxpayers understand Schedule AL, Mint presents a Q&A guide: Declare all financial and non-financial assets, including cash.
This includes jewellery, vehicles, archaeological collections, drawings, paintings, sculptures, and real estate. Schedule AL has separate columns for each category. Experts suggest declaring these under the shares and securities column.
Mayank Mohanka, founder director at TaxAaram India, says, “Tax laws don’t define securities specifically, so it’s safe to declare PF, NPS, or REITs under this category." Consolidate investments in stocks, mutual funds, NPS, EPF, government securities, and derivatives under this section. Declare derivatives bought on 31 March, not for the entire year. No, declare assets at their purchase cost.
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