Disclosure of Assets and Liabilities in the Income Tax Returns (ITR)

Disclosure of Assets and Liabilities in the Income Tax Returns (ITR)

The Central Board of Direct Taxes (CBDT) has notified the forms for filing the return of income for the AY 2016-17 (FY 2015-16). Apparently, the new form requires certain category of tax payers to furnish the details of the assets and liabilities.

The newly notified forms require mandatory disclosure of assets and liabilities of the taxpayer in Income Tax Return, provided the following conditions are satisfied:

1.      The assessee is an Individual or HUF, and

2.      The total Income of such assessee exceeds Rs. 50 Lakhs.

Details of all assets held by the taxpayer and corresponding liabilities are to be disclosed at ‘cost’ in Schedule AL of the relevant ITR form for the following categories of assets/liabilities.

Format for disclosure of assets and liabilities will vary based on the ITR applicable for the assessee:

In ITR – 1, ITR – 2A, ITR – 2 and ITR – 4S

Schedule AL		Asset and Liability at the end of the year (Applicable in a case where total income exceeds Rs. 50 lakh)
	A	Particulars of Asset			Amount (Cost) (Rs.)
DETAILS OF ASSET AND LIABILTY		1.	Immovable Asset
			a	Land	1a
			b	Building	1b
		2.	Movable Asset
			a	Cash in hand	2a
			B	Jewellery, bullion etc.	2b
			c	Vehicles, yachts, boats and aircrafts	2c
		3		Total	3	0
	B	Liability in relation to Assets at A			B

In ITR – 3 and ITR - 4

Schedule AL		Asset and Liability at the end of the year (other than those included in Part A – BS of the return of the Firm in which partner) (Applicable in a case where total income exceeds Rs. 50 lakh)
DETAILS OF ASSET AND LIABILTY	A	Particulars of Asset				Amount (Cost) (Rs.)
		1.	Immovable Asset
			a	Land		1a
			b	Building		1b
		2.	Movable Asset
			a	Financial Asset
				i	Deposits in Bank (including balance in any account)	2ai
				ii	Shares and securities	2aii
				iii	Insurance policies	2aiii
				iv	Loans and Advances given	2aiv
				v	Cash in hand	2av
			b	Jewellery, bullion etc.		2b
			c	Archaeological collections, drawings, painting, sculpture or any work of art		2c
			d	Vehicles, yachts, boats and aircrafts		2d
		3		Total		3	0
	B	Liability in relation to Assets at A				B