Income crossed fifty lakh? Your tax return wants a list of what you own

By Parish Rao · 23 August 2026 · 4 minute read

A good income year comes with one extra piece of homework in your tax return. It is called Schedule AL, and one simple mistake trips up almost everyone.

If your total income for the year crossed fifty lakh rupees, congratulations, and also, your income tax return just grew a new section. It is called Schedule AL, short for assets and liabilities.

What it is, in one line

It is a list of what you own and what you owe. Land, buildings, gold, vehicles, bank balances, investments on one side. Loans on the other. You fill it in, you file it, and that is that.

Before you worry, know this. It is a disclosure, not a bill. Nothing extra gets taxed because of what you list here. India abolished wealth tax years ago. The department simply wants to see the shape of your finances.

The mistake nearly everyone makes

Schedule AL asks for cost. What you paid for the asset. Not what it is worth today.

People fill in today's market value of their house because it feels natural. That is the wrong figure here. Market value belongs in a capital gains calculation when you sell. Schedule AL wants the price you actually paid, plus what you spent on major improvements.

Getting this backwards does not just look untidy. Your return now says something you did not intend, and inconsistencies between years invite questions.

The genuinely hard case, and the answer

What if you inherited the flat and have no idea what your father paid for it in 1981? You still have to enter a figure, and guessing badly is not a plan.

This is where a valuer earns their fee. A supportable cost figure can be reconstructed from records that still exist. Registration records from that era, the government rates for the colony at the time. The figure comes with a basis you can explain if anyone ever asks, and once established, it simply carries forward year after year.

Keep it consistent

Whatever basis you use, use the same one every year. A figure that quietly jumps around between returns is what draws attention. A reasoned figure that stays put almost never does.

You can rough out your totals with our free Schedule AL calculator. For inherited property and family gold where the cost is unknown, read about our Schedule AL valuation service, or have your CA call us directly. We work with accountants on this every filing season.