Mandatory Disclosure in Income Tax Return

This document covers

1. Disclosure of All Bank Accounts
2. Disclosure of Directorship/ Partnership
3. Disclosure of Unlisted Shares
4. Disclosure of Assets and Liabilities
5. Disclosure of Foreign Assets

1. Disclosure of All Bank Accounts

• The Taxpayers are required to mention all the Bank account Numbers and IFSC codes which are active as on 31st March every year in Income Tax Returns.
• The Taxpayers are not required to report dormant accounts (Not active).
• The Taxpayers are required to select 1 account as primary account for receiving refund.

NOTE: w.e.f FY 2023-24, the taxpayers are required to report type of account i.e., Savings Account, Current Account, Cash Credit Account, Over draft account, Non Resident Account and Others.

2. Disclosure of Directorship/ Partnership

• If a taxpayer is a director in any private limited company /One Person Company (OPC)/ Public Limited Company and holding active DIN at any time during the financial year, he is required to mention the following details in Income Tax Return
  • Name of Company
  • Type of Company (Domestic/Foreign)
  • PAN of Company
  • Whether Shares are listed or unlisted
  • DIN
• If a taxpayer is a partner in any partnership firm /LLP at any time during the financial year, he is required to mention the following details in Income Tax Return
  • Name of the Firm/LLP
  • PAN of the Firm/LLP

3. Disclosure of Unlisted Shares

• It is common for the taxpayers to hold shares in private companies, foreign shares etc. These are called unlisted shares as they are not listed on stock exchange.
• If a taxpayer is holding any unlisted shares at any time during the financial year, he is required to disclose the below details in Income Tax Return
  • Name of Company
  • Type of Company (Domestic/Foreign)
  • Pan of Company
  • Opening Balance - Number of shares and Cost of Acquisition
  • Shares acquired during the Year - Number of shares, Date of subscription/purchase, Face value per share, Issue price per share Purchase price per share
  • Shares transferred during the year - Number of shares, Sale consideration.
  • Closing balance - Number of shares, Cost of acquisition

4. Disclosure of Assets and Liabilities

• If a taxpayer’s Net Total Income exceeds Rs 50 lakhs in a financial year, he is required to report Assets and Liabilities mandatorily.
• The following details are required to be reported under schedule Assets and Liabilities.
  • Immovable Property
  • Movable Property
  • Interest held in the assets of a firm or AOP as a partner or member thereof.
  • Liabilities in relation to above assets

5. Disclosure of Foreign Assets

• Foreign asset disclosure is required for the preparation of income tax returns (ITR).
• Every Resident taxpayer who is having any foreign asset needs to report the assets under the Schedule Foreign Assets
• The following details are required to be reported under schedule Foreign Assets
  • Foreign Depository Accounts (Like Bank Accounts, Term Deposits in foreign banks etc)
  • Foreign Custodial Accounts
  • Foreign Equity and Debt interest(Like Shares, Mutual Funds, RSU, ESOP, ESPP etc)
  • Foreign Cash value insurance contract or annuity contract (Like Life Insurance and others)
  • Financial interest in any entity (Companies, Partnerships, LLP’s outside India)
  • Immovable property (House, Buildings, Land etc)
  • Any other capital asset (jewellery, Vehicles, Paintings etc)
  • Accounts of Signing Authorities
  • Trusts created in the foreign country
  • Other income from Foreign sources