Declaration of Assets & Liabilities in New ITR

[ravi jain]

Press Information Bureau
Government of India
Ministry of Finance
10-May-2016

Declaration of Assets & Liabilities in the new ITR forms

Central Board of Direct Taxes (CBDT) have released new income-tax return formswith mandatory provisions of declaring Assets & Liabilities (A&L) such as cars, jewellery yacht, aircrafts, shares, properties, etc. Prior to Assessment Year (A.Y.) 2015-16, the Asset –Liability Schedule (AL schedule) was applicable to filers of ITR 3 and 4, whose total income for the previous year exceeded Rs.25 lakh. The Wealth-tax Act primarily captured the information regarding assets of specified taxpayers. With a view to reduce compliance burden, the Wealth-tax Act was made inapplicable from A.Y.2016-17 with the stipulation that the information regarding assets forming part of the wealth-tax return will be captured in the Income-tax returns. Accordingly, the ITR forms for A.Y. 2016-17 have been rationalised by making the Schedule AL applicable to individuals and Hindu undivided family (HUFs) whose total income for the previous year 2015-16 exceeds Rs.50 lakh. The objective of AL schedule is to capture details of assets and liabilities and not the net worth.

What details are required to be disclosed in schedule AL?

Persons who are required to fill this schedule will have to report the following details:

1. Immovable Property- Cost of Land and Building owned.
2. Movable Property- Cash in hand, cost of Jewellery, bullion, aircraft, vehicles, yachts, boats.
3. In case of ITR 3 & ITR 4-  Additional details regarding deposits or investments made in banks, investment in shares and securities, loans and advances given, insurance policies, cost of archaeological collections, drawings, paintings, etc. are to be provided.
4. Liability (loans) in relations to the above mentioned assets, investments.

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In Gratitude & Best Regards,
Ravi A. Jain (ACA, CS, ISA (ICAI), M.Com(I))
Partner
For H. J. Mehta & Associates,
Chartered Accountant
Visit us at : www.cahjmehta.com

201, Bhaveshwar Complex, 

Next to Vidyavihar Station, 

Vidyavihar(West), Mumbai - 400086

Mob. No.- +91 98193 49431


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