Now Reading: Business income over Rs 1 crore? Disclose assets in ITR by Aug 31
-
01
Business income over Rs 1 crore? Disclose assets in ITR by Aug 31
Taxpayers with business or professional income exceeding Rs 1 crore in FY 2025-26 must file Schedule AL along with their income tax return (ITR) before the August 31 deadline. The disclosure of assets and liabilities applies to individuals and Hindu undivided families (HUFs), and can be filed using ITR-2 or ITR-3 forms.
The schedule requires reporting of immovable property, vehicles, jewellery, shares, cash in hand as on March 31, 2026, and other valuable possessions. Liabilities such as loans taken for property or vehicles must also be declared. Assets must be disclosed at cost, and non-residents need to report only assets located in India.
The tax department states the rule aims to ensure financial transparency and curb evasion. Incorrect or incomplete filings can attract notices. Taxpayers are advised to prepare a statement of assets and liabilities as on March 31, 2026, before filing.
Indian Opinion Analysis
This disclosure requirement is not new but has become stricter in recent years as the tax department uses data from the Income Tax portal and third-party sources to cross-verify asset declarations. For a business owner with income above Rs 1 crore, the key risk is a mismatch between declared assets and visible lifestyle indicators, which can trigger a scrutiny notice. The August 31 deadline is the same for most individual taxpayers filing ITR-3, so missing it means late filing fees up to Rs 10,000. Watch for the tax department's next compliance circular, which may add new categories to Schedule AL or link it to the new income tax bill expected in Parliament later this year.
Source: livemint.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
