Assets & Liabilities Reporting — Explained

This document covers

1. Applicability
2. Schedule AL
3. Details to be reported in Schedule AL
4. Valuation of Assets and Liabilities

1. Applicability

• Schedule AL is applicable to the Individuals/HUF whose Net Total income exceeds Rs 50,00,000 during the financial year.
• Schedule AL can be filled only in ITR 2 and ITR 3.

NOTE on NRI, RNOR Status

In Case of Non-Resident (NRI) or Resident but not ordinarily Resident (RNOR) whose income is more than 50 lakhs, they are required to furnish the details of assets located in India.

FOREIGN ASSETS REPORTING

If you own foreign assets, you must report the Foreign Assets (FA) under Schedule FA while filing your income tax return (ITR) as resident.
• With reference to a campaign released by ITD on 13th Nov 2024, ITD has issued a clarification regarding the disclosure of Foreign Assets.
• Even if the taxpayer has reported the foreign assets in Schedule FA, he is required to disclose the same again in schedule AL if applicable (if his income is more than 50 lakhs)
• There is a clarity missing in this area as reporting the foreign assets again in Schedule AL results in duplication of asset value.
• However it is recommended to follow the clarification issued by ITD

2. Schedule AL

• Schedule AL means statement of disclosure of assets and liabilities by the taxpayers in the Income Tax Returns.
• Schedule AL is applicable from AY 2016-17
• Even if the taxpayers fill the balance sheet in ITR 3, he is required to fill schedule AL.

3. Details to be reported in Schedule AL

The following are the details required to be reported in Schedule AL

• Immovable Property : Immovable Property includes land, Residential buildings (house, apartment or villa etc.), Commercial buildings (including long-leased), Agriculture lands, Farmlands etc. The following details needs to be included.
  • Description of Asset
  • Full Address (Flat No, Name of premises, Road, Area, City and Pin code)
  • Amount
• Movable Property : Amount needs to be given for following assets.
  • Jewellery, Bullion etc
  • Archaeological Collections, drawings, paintings, sculpture or any work of art
  • Vehicles (motor bike, car, any other vehicle), Yachts, boat and aircrafts
  • Bank (including all deposits and balances)
  • Shares and Securities
  • Insurance Policies
  • Loans and Advances given (If you have given any amount as a loan to anyone)
  • Cash in hand

  Jewellery includes

  • Ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel.
  • Precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel.
• Interest held in the assets of a firm or AOP as a partner or member thereof (Applicable for ITR 3 only) :
  • Name and address of Firm/AOP
  • PAN of Firm/AOP
  • Taxpayer’s investment in the firm/AOP on cost basis
• Liabilities in relation to above assets : These include Home Loans, personal loans, business loans, vehicle loans etc.

4. Valuation of Assets and Liabilities

• The assets in Schedule AL needs to be reported at the cost price of such asset to the taxpayer.
• If the assets are received as a gift, will or inheritance, the cost of asset to the previous owner will be consider as cost to the taxpayer.

If you are using EZTax Self or Expert Services, use the Assets & Liabilities template that is organised for ease of reporting.