MANDATORY DISCLOSURE OF ASSET & LIABILITIES IN INCOME TAX RETURN

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MANDATORY DISCLOSURE OF ASSET & LIABILITIES IN INCOME TAX RETURN

Having Income of more than 50 Lakh?  Compulsory provide Assets and Liability details in Income Tax Returns forms.

The income tax department has included one more schedule in the returns forms which mandate an individual to disclose his all assets and liabilities at the end of the financial year. This means a person even who has salary income will have to maintain balance sheet so that he can provide all the relevant information asked in the form.

The following details are compulsory in case your gross total income crosses Rs 50 Lakh during the financial year

Asset and Liabilities at the end of the year (Applicable in the case of total income exceeds Rs.50 lakh)

  • Do you own any immovable asset, if yes then ?
  • Details of immovable asset
  • Type of Immovable property – Land Building, etc
  • Description and Complete Address
  • Amount (cost) in Rs.

Probable reason for Mandatory Disclosure

There have previously been many cases wherein it has been found that the assets of the taxpayer do not justify the income earned by them. So as to keep a check on the assets acquired and the income earned, ITD has mandated that all assets shall be disclosed in the ITR   in case of individuals earning more than 50lakhs from any source.

In case the person who has income of more than 50 Lakh fails to provide information, the return are not accepted. So it is advisable for individuals who are earning more than Rs 50 Lakh to maintain such information and also maintain accounts which will help them to maintain capital account and balance sheet.

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