ITR 2026: Mandatory asset-liability disclosure for income over ₹1 crore

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

• Immovable property (land, buildings)
• Financial assets (bank deposits, shares, mutual funds, bonds, insurance policies)
• Jewellery, bullion, and precious stones
• Vehicles (cars, aircraft, yachts)
• Cash in hand (above a specified threshold)
• Any other asset of significant value

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

• Loans from banks and financial institutions
• Borrowings against property or other assets
• Credit card dues
• Any other outstanding liability

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

Previously, there have been many instances where the taxpayer's 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.

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

• Report assets at cost of acquisition, not market value, unless specified otherwise
• Include assets held jointly or as a beneficial owner
• Disclose foreign assets and income from foreign sources separately
• Ensure the total value of assets matches the source of funds declared in the ITR
• Maintain supporting documents for all assets and liabilities listed