WEALTH TAX • SCHEDULE AL • ASSETS & LIABILITIES

Schedule AL (Assets and Liabilities) — The Post-Abolition Wealth Disclosure Framework

Schedule AL (Assets and Liabilities) is the post-abolition wealth disclosure framework for individuals and HUFs meeting the applicable income threshold of Rs 50 lakh. It requires comprehensive disclosure of specified assets, liabilities and their relevant values, making accurate FMV documentation and registered valuer support important for HNI tax compliance.

Rs 50L+ Income Threshold 5+ Asset Categories FMV Professional Valuation HNI Wealth Disclosure
THE POST-ABOLITION FRAMEWORK

Why Schedule AL Matters for HNI Tax Compliance

Schedule AL (Assets and Liabilities) was introduced in the ITR forms as the post-abolition wealth disclosure mechanism. It applies to the individual or HUF with total income exceeding Rs 50 lakh in the relevant financial year.

The framework provides the Income Tax Department with a comprehensive view of an HNI taxpayer's asset position and supports asset monitoring, anti-evasion analysis and lifestyle-to-income consistency verification.

AL
Assets + Liabilities = Wealth Position

Schedule AL brings together the taxpayer's reportable assets and liabilities to provide a comprehensive disclosure of the financial position.

SCHEDULE AL • ASSET DISCLOSURE

The Schedule AL Asset Categories

The Schedule AL framework requires disclosure across multiple asset categories. Professional valuation becomes particularly important where the asset requires an independent determination of fair market value.

A CATEGORY A

Immovable Property

Disclosure of the address of each immovable property, cost of acquisition and current FMV.

VALUATION SUPPORT Registered Valuer FMV Certificate
B CATEGORY B

Financial Interest in Any Entity

Includes shares, debentures, capital contribution, trust interests, insurance surrender value, loans given and bank deposits.

VALUATION SUPPORT Unquoted Equity FMV Certificate
C CATEGORY C

Cash in Hand

Disclosure of cash in hand exceeding Rs 50,000 within the applicable Schedule AL framework.

DISCLOSURE BASIS Cash Balance
D CATEGORY D

Jewellery, Bullion & Valuable Articles

Description of each item, cost of acquisition and current FMV supported by a Rule 6-basis jewellery valuation.

VALUATION SUPPORT Registered Valuer Jewellery Certificate
E CATEGORY E

Vehicles, Yachts, Boats & Aircraft

Disclosure includes registration number, make, model, year, acquisition cost and current FMV.

VALUATION SUPPORT Vehicle & Special Asset Valuation
F ADDITIONAL CATEGORY

Other Assets

Comprehensive disclosure of other movable assets not covered under the principal Schedule AL categories.

DISCLOSURE BASIS Asset Description & FMV
ASSETS & LIABILITIES

From Asset Disclosure to the Net Wealth Position

Schedule AL also requires disclosure of relevant liabilities. The relationship between disclosed assets and liabilities provides the effective net wealth position of the taxpayer.

01 Bank Loans

Loans obtained from banks and financial institutions.

02 Financial Institution Loans

Liabilities owed to relevant financial institutions.

03 Company & Other Loans

Loans from companies, other parties and applicable lending sources.

04 Foreign & Other Liabilities

Foreign loans and other reportable liabilities.

NET WEALTH POSITION Schedule AL Assets
−
LESS Applicable Liabilities
=
EFFECTIVE POSITION Net Wealth
PROFESSIONAL VALUATION SUPPORT

One Registered Valuer for the Multi-Asset Schedule AL Portfolio

A2Z Valuers provides comprehensive fair market value documentation across multiple Schedule AL asset categories, helping HNI taxpayers and professional advisors maintain a consistent valuation framework.

01

Immovable Property

Rule 3 ALV methodology combined with market comparison where applicable.

02

Unquoted Equity

Rule 11UA DCF and book-value NAV methodologies for applicable financial interests.

03

Jewellery & Bullion

Rule 6 methodology incorporating metal weight, hallmark purity and gemstone assessment.

04

Motor Vehicles

Depreciated cost and market comparison approaches for applicable vehicle assets.

AL
Annual Schedule AL Valuation Cycle

HNI taxpayers may require an annual update of multi-asset FMV documentation. Maintaining current valuation records can provide a consistent evidentiary foundation for Schedule AL disclosure and subsequent tax scrutiny.

GOVERNMENT APPROVED VALUATION PRACTICE

Need a Schedule AL FMV Valuation?

Get professional valuation support for property, financial interests, jewellery, vehicles and other reportable assets forming part of your Schedule AL disclosure.

☎ SPEAK WITH A GOVERNMENT APPROVED VALUER +91 9999992343 →
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