Disclosure of Assets under ITR forms

Introduction

On filing an Income Tax Return, some taxpayers are asked to provide details of the assets that are owned by them including the liabilities in the respective Income Tax Return.
Only those persons are required to furnish the details of the assets as prescribed by the law.
In order to understand better the details and assets required to be disclosed under this form, this article will answer all the doubts regarding it.

There are certain taxpayers who are required to disclose the assets and liabilities. This criterion is applicable to those that are filing ITR 2 and ITR 3.
This requirement shall be applicable to those who have a taxable income after all the necessary deductions of more than Rs 50 Lakhs in the financial year.
An honest taxpayer who is eligible to file ITR-1 or ITR-4 shall be deemed to be outside this criterion.
In the case, where the person is engaged in business, he has to produce a balance sheet by including all assets are not required to disclose the details again.

The categories of the taxpayers are required to provide the information of the assets and liabilities as of 31st March 2020 in the schedule of Assets and Liabilities of ITR.
All the assets that are disposed of in a year are not required to be furnished.
The particulars of immovable property and movable property shall be furnished.
If a person is a partner in a firm or member of an association then the particulars in the interest of a person shall be disclosed by a PAN of the business.

While discussing the immovable properties, the complete details regarding land and building owned by one person or multiple persons.
The details shall contain the cost, address, PIN, and description of the property. The details shall also be provided of immovable property that is acquired from gifts or as an inheritance.
If a taxpayer faces any issue in providing the cost of the property, then the market price as of 1st April 2001, of the said property shall be considered whether acquired before or prior to the above-mentioned date.
If the loan is acquired on the property then the details of the same shall be reflected in the ITR and details of money borrowed on the security of such property.

Under this category, the details of movable properties assets such as a vehicle, jewelry, ship, and art items such as paintings and sculptures shall be furnished by the taxpayer at the time of filing ITR.
The details of the financial assets namely shares, debentures, cash in hand, and bank, health policies are also required to be furnished.
On the income tax website, in the liability option, the person shall provide the details of liabilities with respect to the securities of assets as mentioned above.
In addition, it is very important in the case of jewelry that bullion (bars of silver and gold) that are in the raw form shall also be disclosed.
In the case of bank balances, apart from the details of saving and current, the details of the fixed deposits shall be disclosed.
If a taxpayer has availed loan or overdraft facility against the aforesaid deposits, then the details of such loans shall be provided under the liability.
While talking about life insurance plans, those plans shall not be considered as investments where the money is not returned to the taxpayer. In terms of insurance policies, traditional policies shall be considered as investments only.