• Assets Declaration in Schedule AL of ITR-2

Declaration of assets & liabilities in Schedule AL of ITR-2 is required when total income chargeable to income-tax is more than 50 lakhs. My question is as follows:
Can a taxpayer voluntarily declare his assets in Schedule AL of ITR-2 even when his total income chargeable to income-tax is less than 50 Lakhs? If yes, what would be the ramifications of doing so?
Asked 5 months ago in Income Tax

There is no restriction for disclosing assets and liabilities when your total income is less than Rs. 50 L. However, it may be followed only for a specified purpose. It would be better to avoid over disclosures which are vulnerable to unwanted scrutiny by the Tax Dept. 

Karthik R
CA, Bengaluru
7 Answers

Not rated

If total income is below 50 lacs ITR 2 will not be applicable. Hence assets liabilities are not to be declared.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

5.0 on 5.0

For your first question, yes, a taxpayer can voluntarily declare assets in Schedule AL of ITR-2 even if their income is less than ₹50 lakhs. However, doing so might lead to unnecessary scrutiny from the Tax Department, as it is generally not required for income below this threshold.

Regarding the second question, for an NRI whose total income in India is below ₹50 lakhs, ITR-2 without Schedule AL is typically used, and there's no requirement to declare such assets and liabilities. However, given the e-campaign message from the IT Department about high-value transactions not aligning with the ITR, the NRI should consider providing a clear explanation and supporting documentation about the source of funds (income earned abroad) used for the NRE FDs.

Please let me know if you need any other clarification!

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
238 Answers
4 Consultations

5.0 on 5.0

- File ITR with an Indian Income. Show all bank accounts operative during the F.Y. 2022-23 (i.e. NRO & NRE A/c's)

- You can disclose the balances in bank accounts, FD and other assets as on 31.03.2023. Filling Schedule AL will serve the limited purpose to such e-campaign messages. You may get a limited scrutiny notice to prove the source of funds for FD amount

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

Saving A/c No.'s are required under bank details. In schedule AL, no such information is required

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

No FD Account No is not required

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

5.0 on 5.0

When filing your Income Tax Return using the ITR-2 form, it is not necessary to include the account numbers of your Fixed Deposits (FDs). You are only required to provide the details of your savings accounts.

 

Please let me know if you need any other clarification!

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
238 Answers
4 Consultations

5.0 on 5.0

You should not unnecessarily declare FDs in the Schedule AL. Doing so might invite scrutiny for the source of funds. As far as query raised under E-campaign is concerned, that's issued to many taxpayers having high value transition. You should respond to the same by today on the compliance portal saying that the information is denied. 

Prerna Peshori
CA, Pune
194 Answers
11 Consultations

5.0 on 5.0

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