Who has to declare Assets and Liabilities held in India in the Income Tax Return?
Those taxpayers including salaried employees (i.e., Residents or Resident Not Ordinary Residents or Non-Residents) whose total income (after all deductions) in India exceeds Rs.50 Lakhs have to mandatorily disclose the details of movable and immovable assets held in India along with liabilities like Bank Loan, incurred in relation to such assets.
Immovable Assets include land and building, bank deposits, shares and securities, share in partnership firms, Insurance Policies (no need to disclose Term Insurance Policies), loans and advances given to friends and relatives, if any, cash in hand, etc.
Movable Assets include Jewellery, Bullion, Gold Bars and Coins, Vehicles, Boats, Aircraft, painting, sculpture, etc. Personal assets like wearing apparel or Furniture at home are not to be disclosed.
To give further clarity on this, please note the NRIs or RNOR or OCI Cardholders, having over Rs.50 lakhs income in India have to disclose only the details of their Assets and Liabilities located in INDIA
The Information to be disclosed in Schedule AL of ITR are –
- The cost price of such assets (if you don’t have the data, mention the approximate cost). Please note that the purchase cost/price is to be mentioned and not the present market value.
- In case the assets are acquired through Gift or WILL, the cost to the previous owner (The purchase price by the donor) is to be mentioned.
- In case of Jointly held property, mention your share (%) in the property
- Mention the description of the property like residential/commercial, its address with PIN Code number
The Assets and Liabilities held as on the last day of the Financial Year is to be reported and thus means, if any assets are disposed during the year, it needn’t be shown in Schedule AL.
Please read previous article Who has to declare Foreign Assets in Indian Tax Returns? here https://simplifiedlaws.com/faq/should-nris-declare-their-foreign-assets-in-their-indian-tax-returns/