Disclosure of Assets in Income tax Returns

In order to detect cases of disproportionate assets owned by a taxpayers as compared to his known sources of income, the income tax department wants taxpayer with income over 50 lakhs to report various assets and liabilities in Income Tax Return (ITR).

Applicability:

Every Person having Taxable Income more than Rs.50 Lakhs in the Financial Year is required to disclose all the Assets in the Income tax return. However, if Such tax payer is engaged in business he should also disclose the asset which are not included in the Balance Sheet.

Disclosure of immovable Property:

All the Immovable property should be recorded at cost in the schedule AL. The following to be included in the Schedule AL

1. Description and Address of the Assets
2. Cost of the Assets
3. As assets that are inherited

Disclosure of Movable Property:

Under the disclosure of the Movable Property the assets to be disclosed including the financial Assets Like:

1. Cash In hand
2. Bank Balances
3. Shares and Securities
4. Insurance Premium paid
5. Jewelry including the Bullions
6. Vehicles
7. Interest in the assets of Partnership
8. Painting and Artwork

FAQ:

• Mr.A is having the Total Income of Rs.51,00,000/- and having Rs.1,50,000/- as the PF and Rs.25,000/- as the medical insurance paid .Does Mr.A is required to disclose all the assets ?

  No, Mr. A is not required to disclose all the assets as the the Taxable income is not exceeding Rs. 50 Lakhs. Here taxable income is Rs.49,25,000/-

Declaration :

“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”