In this guide
What is Schedule AL?
In some income tax returns, the “Assets and Liabilities at the end of the year” schedule is known as Schedule AL. It requires taxpayers to report specified assets and related liabilities as at the end of the financial year.
It is a disclosure schedule. It does not calculate a separate tax on the value of your assets, and an asset is not taxable merely because it is listed. Income from an asset, such as rent, interest or capital gains, must still be reported under the relevant income head.
For AY 2026-27, Schedule AL relates to income earned from 1 April 2025 to 31 March 2026. The disclosure is made as at 31 March 2026.
Who needs to complete Schedule AL?
The notified ITR-2 and ITR-3 forms for AY 2026-27 require Schedule AL when the taxpayer’s total income exceeds ₹1 crore.
“Exceeds” means more than ₹1 crore. Exactly ₹1 crore does not cross the threshold. For example, total income of ₹1.02 crore exceeds it, while total income of exactly ₹1 crore does not.
The test is based on total income in the return, not on the value of the taxpayer’s assets. A person with assets worth ₹5 crore and total income of ₹80 lakh does not have to complete Schedule AL based on this threshold alone. On the other hand, a taxpayer with total income above ₹1 crore may have to complete it even if their assets are modest.
Total income is not the same as:
- Gross receipts or turnover from a business or profession.
- Gross total income before allowable deductions.
- Net worth or the combined value of a family’s assets.
- The value of assets purchased or sold during the year.
Use the current AY 2026-27 form and filing utility, and check the total income calculated in the applicable return.
Which ITR form is applicable?
Schedule AL is relevant mainly to individuals and Hindu Undivided Families (HUFs) filing ITR-2 or ITR-3:
- ITR-2 is generally for individuals and HUFs who do not have income taxable under “Profits and Gains of Business or Profession” and are not eligible to use ITR-1.
- ITR-3 is generally for individuals and HUFs with business or professional income who are not eligible to use ITR-4.
The correct form depends on your income sources and eligibility, not just whether your income exceeds ₹1 crore. Do not choose ITR-2 or ITR-3 solely to use Schedule AL.
Compare ITR-1, ITR-2, ITR-3 and ITR-4 for AY 2026-27
ITR-1 and ITR-4 are generally available only to eligible taxpayers with total income up to ₹50 lakh, subject to other conditions. They are therefore generally not the forms for a taxpayer whose total income exceeds ₹1 crore. Do not assume the Schedule AL instructions for individuals and HUFs apply to ITR-5, ITR-6 or ITR-7.
Which assets must be reported?
The AY 2026-27 forms request details of specified immovable and movable assets held at the end of the year. There are some differences between the fields in ITR-2 and ITR-3.
| Schedule AL section | Examples of information or assets requested |
|---|---|
| Immovable assets | Description, address, PIN code and amount at cost |
| Movable assets | Jewellery and bullion; archaeological collections, paintings, sculptures and other works of art; vehicles, yachts, boats and aircraft |
| Financial assets | Bank accounts and deposits, shares and securities, insurance policies, loans and advances given, and cash in hand |
| Business interests in ITR-3 | Interest in a firm or association of persons (AOP), including the taxpayer’s investment on a cost basis |
| Related liabilities | Liabilities in relation to the assets included in the relevant Schedule AL sections |
The schedule does not require you to list every household item. Follow the categories in the notified form and current utility, and keep records to support the figures you enter.
Report the value requested in the form
For immovable and movable assets, the form asks for the amount at cost. This is not a general instruction to substitute current market value or estimated resale value. For a property, for example, use records that support its acquisition cost.
The form also asks for amounts for financial assets. The appropriate figure depends on the asset and the field’s instructions. Reconcile bank accounts and deposits with statements as at 31 March 2026. Keep relevant investment, insurance, loan and advance records. Do not use one valuation method for every asset; follow the instructions for each field in the current utility.
If an asset is jointly owned, keep records that show each owner’s share and the amount attributable to you. Schedule AL is completed in the individual or HUF return; it is not a family wealth statement. Determine ownership and the appropriate share from the facts and records rather than reporting another person’s asset simply because you helped pay for it or it is held in a joint account.
What should be included in liabilities?
Schedule AL asks for liabilities related to the assets listed in the relevant sections. Examples may include an outstanding home loan connected with a property or a vehicle loan connected with a vehicle.
Do not enter every amount you owe in this section. A personal credit card balance or unrelated borrowing is not necessarily a liability “in relation to” a listed asset. Keep loan statements and account records that show the connection and the balance at year-end.
The notified ITR-3 Schedule AL covers assets and liabilities other than those included in Part A-BS. Part A-BS contains balance-sheet information for the business or proprietary concern, where applicable. Do not duplicate assets already included there.
ITR-3 Schedule AL also has a separate section for a partner’s or member’s interest in a firm or AOP, including the investment on a cost basis. Check the relevant fields carefully.
How does residential status affect reporting?
A non-resident or a resident but not ordinarily resident (RNOR) reports only assets located in India in Schedule AL. A resident and ordinarily resident taxpayer should review the instructions to the applicable form to determine the required disclosures.
Schedule AL is separate from Schedule FA, which covers foreign assets and related foreign income. Completing Schedule AL does not replace a Schedule FA disclosure where one is required. Residential status, ownership or beneficial interest, and the type of foreign asset can affect the reporting obligation. Review both schedules rather than assuming one covers the other.
There is also a specific exception in the AY 2026-27 ITR-2 form. An individual who is not an Indian citizen and is in India on a business, employment or student visa need not report an asset acquired in a previous year when they were non-resident if no income is derived from that asset during the current previous year. Check that all the conditions apply before relying on this exception.
Documents to collect before filling out Schedule AL
Prepare a year-end asset and liability summary before filing. Useful records may include:
- Property purchase documents, registration papers and address details.
- Bank statements and deposit summaries as at 31 March 2026.
- Demat, broker and investment statements, with acquisition-cost records.
- Insurance policy documents and premium information.
- Vehicle purchase invoices and loan statements.
- Purchase or valuation records for jewellery, bullion, art and other listed movable assets.
- Details and supporting documents for loans and advances given to others.
- Cash records and, where applicable, books of account.
- Loan statements for liabilities related to reported assets.
- Partnership or AOP documents and capital-account details for ITR-3.
- Ownership documents for jointly held assets.
- Previous returns and schedules, which may help explain changes in holdings.
A bank balance at year-end may not be enough to prepare the schedule. It may not include property, securities, loans given, insurance policies, valuables or liabilities. Reconcile the information with your books, statements and purchase documents.
An asset sold before 31 March 2026 may not be part of the Schedule AL year-end snapshot. The sale may still have to be reported elsewhere in the return, such as in the capital gains schedule. Keep the transaction and sale records; not reporting an asset in Schedule AL does not remove other reporting requirements.
How to fill out Schedule AL
The online screens and utility may change. Use the current AY 2026-27 version and follow the sequence in the filing portal.
- Confirm the assessment year and return form. Select AY 2026-27 for income earned from 1 April 2025 to 31 March 2026. Use ITR-2 or ITR-3 only if you are eligible for that form.
- Complete the income schedules first. Report income and deductions so the return can calculate total income. The ₹1 crore Schedule AL test is based on total income, not the asset figures you are about to enter.
- Check whether Schedule AL is required. If total income exceeds ₹1 crore, complete the schedule in the applicable return. Do not leave it blank because some information is pre-filled elsewhere.
- Categorise assets under the form’s headings. Enter each item in the appropriate immovable, movable, financial asset or ITR-3 business-interest field. Use the amount basis requested for that field.
- Enter related liabilities. Record liabilities connected to the assets listed and keep supporting records for the relationship and year-end balance.
- Check residential status and ownership. Apply the rules for non-residents and RNORs, and review joint ownership and beneficial interests. Assess Schedule FA separately if foreign assets are involved.
- Reconcile before submission. If filing ITR-3, compare entries with statements, loan records, books of account and Part A-BS. Correct omissions and avoid double counting.
- Validate, submit and e-verify. Review the return computation and tax payable or refund information. Submit the return and complete verification within the permitted period. Filing is not complete until the required verification is done.
If you need help selecting the correct return or reconciling multiple income and asset statements, the TaxClear ITR filing service may be relevant.
AY 2026-27 filing dates
Schedule AL has no separate filing deadline. It is filed with the income tax return, so the due date depends on the taxpayer and the applicable return-filing category.
As at 28 October 2026, the ordinary non-audit deadlines for AY 2026-27 have passed. The ordinary due date for the relevant ITR-2 category was 31 July 2026, while the applicable non-audit deadline for relevant ITR-3 taxpayers was 31 August 2026. Check your statutory category and whether a specific extension applies.
CBDT Circular No. 07/2026 extended the AY 2026-27 return due date for specified audited cases from 31 October 2026 to 21 November 2026. The extension applies only to persons covered by the circular; it is not a general extension for every ITR-2 or ITR-3 filer.
A belated return may generally be filed by 31 December 2026, or before completion of the assessment, whichever is earlier, subject to the law and eligibility to file. A late-filing fee under section 234F may be ₹1,000 where total income does not exceed ₹5 lakh and ₹5,000 in other cases. Interest may also apply depending on the facts. Filing late may affect the ability to carry forward certain losses, so do not wait until the last day if you need to file.
The Income-tax Act, 2025 came into force from 1 April 2026 for the next tax period. Returns for income earned in FY 2025-26 are still filed for AY 2026-27 under the Income-tax Act, 1961. Select the assessment year, form and instructions for the income period being reported.
Common Schedule AL mistakes
- Using ₹50 lakh as the threshold for AY 2026-27. The notified forms use total income exceeding ₹1 crore.
- Treating exactly ₹1 crore as “exceeding” ₹1 crore.
- Comparing the value of assets with ₹1 crore instead of checking total income.
- Reporting only bank balances and omitting other categories listed in the form.
- Entering estimated market values in fields that ask for cost.
- Reporting liabilities that are not related to the assets listed in the schedule.
- Duplicating business assets already included in Part A-BS of ITR-3.
- Reporting an asset’s full value without checking the co-owners’ respective shares.
- Treating Schedule AL as a substitute for Schedule FA.
- Filing ITR-2 or ITR-3 without checking whether it is the correct form.
- Forgetting to e-verify after submitting the return.
Frequently asked questions
If my total income is exactly ₹1 crore, do I need to fill Schedule AL?
The AY 2026-27 forms say Schedule AL applies when total income is more than ₹1 crore. Exactly ₹1 crore does not cross that threshold, although other return schedules or filing requirements may still apply.
Do I report the current market value of my property?
The form asks for the amount at cost for immovable assets. Use records that support the cost and follow the current utility’s instructions rather than using an estimated market price.
Do I have to list all loans or liabilities?
No. The schedule requests liabilities connected with assets listed in the relevant sections. Keep records to support the connection and the balance at year-end.
Are non-residents covered by Schedule AL?
The form instructions state that a non-resident or RNOR reports only assets located in India. Review the current instructions and assess any separate Schedule FA requirements based on your status and circumstances.
Should I repeat assets already on my balance sheet if I file ITR-3?
No. The notified ITR-3 Schedule AL is for assets and liabilities other than those included in Part A-BS. Reconcile the schedules and avoid entering the same asset twice.
What if I discover that I missed Schedule AL after filing?
Check whether you can file a revised return under the applicable rules and within the prescribed time limit. AY 2026-27 returns are governed by the Income-tax Act, 1961. Use the applicable procedure to correct the return and e-verify the revised filing.
