ITR filing 2026: If your income exceeds ₹1 crore, this disclosure is mandatory

Taxpayers with a total income exceeding ₹1 crore have to adhere to an additional compliance requirement while filing their income tax return (ITR). Besides reporting their income, they must also disclose their assets and liabilities under Schedule AL of the relevant ITR form.

This step is particularly important because incorrect or incomplete disclosures can attract notices from the income 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 individual and HUF taxpayers filing ITR-2 (not having income from business and profession) and ITR-3 (having income from business and profession).

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 this Schedule, 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

How to calculate

For AY 2026-27, taxpayers should prepare a statement of their assets and liabilities as on 31 March 2026. This means the value to be reported in Schedule AL of the relevant ITR form should be based on the assets held and liabilities outstanding at the end of FY 2025-26.

Why is it mandatory to file Schedule AL for some taxpayers?

Previously, there have been many instances where the taxpayers assets do not match with the income earned by them, according to a Cleartax report.

Schedule AL helps the income tax department verify whether a taxpayer's assets are consistent with the income they have reported. Hence, the disclosure was made mandatory for those with a total income exceeding ₹1 crore.

Some extra guidelines to file Schedule AL

As mentioned in the Cleartax report, here are a few guidelines you must comply with while filing Schedule AL:

• 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.