Business income above ₹1 crore? You must make this disclosure in your ITR before August 31 deadline

If your business income was more than ₹1 crore in FY 2025-26, then you have an additional disclosure to make while filing your income tax return (ITR) before the August 31 deadline. Besides reporting your income, you must also disclose your assets and liabilities under Schedule AL of the relevant ITR form.

This mandate applies to individual taxpayers, as well as Hindu undivided families (HUFs) with income exceeding the above mentioned threshold. Adhering to this compliance requirement is particularly important because incorrect or incomplete disclosures can attract notices from the tax department.

“Schedule AL applies to Individuals and Hindu Undivided Families (HUFs) who are required to file this return and whose total income exceeds Rs. 1 crore in the financial year. This schedule mandates disclosure of details related to assets and liabilities held at the end of the year," the tax department says on its website.

It also mentioned that this disclosure requirement is aimed at ensuring greater financial transparency and helping curb tax evasion.

Who can fill Schedule AL?

Schedule AL applies to both individual and HUF taxpayers who have income from business or profession. It also applies to those who do not have business or professional income but earn more than ₹1 crore in a financial year through salary, capital gains or other sources.

You can make this disclosure in both ITR-2 and ITR-3, depending on your income profile and source of earnings.

Meanwhile, companies filing ITR-6 are required to furnish details of their assets and liabilities through Schedule AL-1 and Schedule AL-2.

What needs to be reported in Schedule AL?

In Schedule AL, the assessee must report the following assets:

• Immovable property: Land and buildings
• Movable assets: Vehicles, jewellery, archaeological collections, shares, and securities.
• Cash in hand: Cash held as on 31 March 2026.
• Other valuable possessions: Anything that holds significant monetary value.

Additionally, the assessee must disclose liabilities in relation to these assets:

• Loans taken for property
• Loans taken for vehicle purchases

Taxpayers who are filing ITR before the August 31 deadline should prepare a statement of their assets and liabilities as on 31 March 2026, which is when the financial year 2025-26 ended.

What you need to know before filing Schedule AL

As per a Cleartax report, here are a few guidelines that a taxpayer must comply with while filing Schedule AL in their relevant ITR form:

• A taxpayer must disclose their assets at cost. Additionally, any cost of improvement incurred on the asset can also be reported.
• Non-residents and not ordinarily resident individuals having income above ₹1 crore need to provide details of their assets situated only in India.

• If the asset is a gift, will, or any other mode in Section 49(1) and not covered by the above clause, then the cost of such an asset must be declared as per the cost provided by the previous owner plus the cost of any improvement incurred by the previous owner.
• If the cost of such an asset is not known and no wealth tax return was filed for that asset, the value can be estimated at the circle rate or bullion rate as per the date of acquisition by the assessee.