Mandatory Asset Disclosure in ITR for Income Over ₹1 Crore: All You Need to Know
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:
-
Individuals with annual income above ₹1 crore
-
Those filing ITR-2 or ITR-3
-
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:
-
Type of property: plot, flat, or house
-
Purchase cost
-
Address/location
-
Mode of acquisition (purchase, gift, inheritance)
-
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:
-
Cash in hand
-
Bank balances and fixed deposits
-
Shares and mutual funds
-
Vehicles, jewellery (gold/silver), paintings
-
Insurance policies with surrender value
-
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:
-
Declare it in your ITR
-
Mention the market value as of specific dates:
-
For unlisted shares: value as on 1 April 2001
-
For listed shares: value as on 31 January 2018 (for grandfathering benefit)
-
This helps in proper capital gains calculation in the future.
🧾 Why This Rule Matters
The Income Tax Department has introduced this requirement to:
-
Detect inconsistencies between reported income and asset accumulation
-
Improve transparency and curb tax evasion
-
Strengthen compliance among high-net-worth individuals
⚠️ Penalties for Non-Disclosure
Failing to declare the required information may lead to:
-
Scrutiny or notices from the Income Tax Department
-
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.
