Schedule AL in ITR - What the taxpayers should know

Schedule AL (Assets & Liabilities) is a part of ITR Form 2 and ITR Form 3 and is applicable for Individuals and HUFs earning above Rs 50 lakh. This requirement of filing Schedule AL in the ITR Form was introduced by the government to keep a check on taxpayers whose increase in assets does not match their incomes.

Generally, only business owners are required to report their assets and liabilities via their balance sheets. However, the government has now mandated that all individuals and HUFs earning more than a specified amount should disclose all their assets and liabilities. Schedule AL stands for ‘Schedule Assets & Liabilities’ and is a type of mini balance sheet that is required to be filed by a certain class of taxpayers. Everyone is not required to report data in Schedule AL; only those individuals and Hindu Undivided Families (HUFs) who have income above Rs 50 lakh during a financial year are required to report data in Schedule AL. Schedule AL is a part of ITR Form 2 and ITR Form 3 and is applicable for individuals and HUFs earning above Rs 50 lakh. It cannot be filed using ITR Form...

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