Schedule AL in Income Tax: Your Guide for 2026-27

By Parish Rao · 9 September 2026 · 11 minute read

Schedule AL is a mandatory part of ITR-2 and ITR-3 for individuals and Hindu Undivided Families (HUFs) with a total income exceeding ₹50 lakh in a financial year.

Schedule AL is a mandatory part of ITR-2 and ITR-3 for individuals and Hindu Undivided Families (HUFs) with a total income exceeding ₹50 lakh in a financial year. It requires reporting specified assets and corresponding liabilities at their cost of acquisition, not their current market value, as of March 31st of the financial year.

What is Schedule AL in Income Tax?

Schedule AL, which stands for Assets and Liabilities, is a section within India's income tax Return (ITR) forms. It requires certain taxpayers to provide a detailed statement of their assets and corresponding liabilities as of March 31st of the financial year. The primary goal of Schedule AL is to enhance transparency regarding the financial standing of high-net-worth individuals and Hindu Undivided Families (HUFs) in India.

Who is Schedule AL applicable to?

Schedule AL is applicable to individuals and Hindu Undivided Families (HUFs) whose total income for the financial year exceeds ₹50 lakh. This requirement applies to those filing ITR-2 and ITR-3 forms. For example, if an individual's income for the Financial Year 2025-26 (Assessment Year 2026-27) is more than ₹50 lakh, that individual will need to complete Schedule AL.

Why did the government introduce Schedule AL?

The government introduced Schedule AL starting from Assessment Year 2016-17 (Financial Year 2015-16) through the Finance Act. The main reason for its introduction was to increase financial transparency and curb black money. By requiring taxpayers to declare their significant assets and liabilities, the Income Tax Department gains a clearer picture of their wealth. This helps in cross-verifying income declarations and identifying discrepancies, ultimately promoting better tax compliance.

What assets and liabilities must be reported in Schedule AL?

Schedule AL demands a comprehensive declaration of various assets and their associated liabilities. It covers a range of movable and immovable wealth.

What immovable property must be reported in Schedule AL?

You must declare all immovable properties you own, whether residential, commercial, or agricultural land. The key here is to report the cost of acquisition of these properties. The cost of acquisition means the actual price you paid to acquire the asset, including any registration charges, stamp duty, or cost of improvements, not its current market value. For instance, if you bought a plot of land in 2005 for ₹20 lakh, and its market value today is ₹1 crore, you still report ₹20 lakh in Schedule AL.

What movable assets must be reported in Schedule AL?

Beyond property, Schedule AL requires you to list various movable assets. These include jewellery, archaeological collections, drawings, paintings, sculptures, or any work of art. Vehicles must also be declared. Cash in hand and bank deposits, including savings accounts and fixed deposits, are required. Shares and securities, such as debentures, must be reported. Loans and advances given to others are also included. For all these movable assets, the reporting value is the cost of acquisition, not their current market value as of March 31st.

What liabilities must be reported in Schedule AL?

Schedule AL also requires you to declare any liabilities that are linked to the assets you have reported. This primarily includes loans taken for acquiring these assets. For example, if you have a home loan for a property you have declared, you must also report the outstanding balance of that home loan as a liability. Vehicle loans or loans taken to purchase shares would also be included.

How do I fill out Schedule AL step by step?

Filling out Schedule AL requires careful attention to detail. It is not just about listing assets, but about providing the correct values and ensuring consistency with other parts of your ITR.

Where does Schedule AL appear in ITR-2 and ITR-3?

Schedule AL is an integral part of ITR-2 and ITR-3 forms. These forms are typically used by individuals and HUFs who have income from sources like salaries, house property, capital gains, other sources, and for ITR-3, also from business or profession. You will find Schedule AL as a distinct section within these forms, usually towards the end, after all income and deductions have been calculated. The online tax filing utility provided by the Income Tax Department will guide you to this section if your income exceeds the ₹50 lakh threshold.

How do I report property in Schedule AL?

For Schedule AL, you must report the cost of acquisition of your immovable property. This is the amount you originally paid to purchase the property. It should also include any expenses directly related to the purchase, such as stamp duty, registration fees, and the cost of any improvements made to the property before March 31st of the financial year. You do not report the current market value of your property. For example, if you bought a house for ₹80 lakh in 2010 and its current market value is ₹2 crore, you will enter ₹80 lakh in Schedule AL.

What are common mistakes taxpayers make when filling out Schedule AL?

Taxpayers often make mistakes when filling out Schedule AL. A common error is confusing cost with Fair Market Value (FMV). Schedule AL specifically asks for the cost of acquisition, not the current market value. Another mistake is omitting inherited property. For inherited assets, the cost to the previous owner should be reported, or if unknown, the fair market value at the time of inheritance. Forgetting to declare loans taken against reported assets, or not reporting all specified assets, are also common errors. Incorrectly valuing jewellery, where the cost of acquisition should be reported, is another frequent mistake.

Schedule AL and property valuation, where do they intersect?

While Schedule AL requires you to report the cost of acquisition for your property, this does not mean property valuation is irrelevant. Understanding the difference between cost and market value is crucial for various other financial and tax scenarios.

When do I need a professional property valuation report?

A professional property valuation report is essential for many situations, but not directly for filling out Schedule AL. For Schedule AL, you rely on your purchase documents to state the cost of acquisition. You need a valuation report for purposes such as capital gains valuation. When you sell a property, especially one held for a long term, you need to calculate capital gains. For properties acquired before April 1, 2001, the Fair Market Value (FMV) as on April 1, 2001, is used as the cost of acquisition for capital gains calculation. This requires a professional valuation. Rao Valuers specializes in providing accurate capital gains valuation for property sold after 2001.

Banks require valuation reports to assess the collateral value of a property before sanctioning loans. For estate planning, distribution among heirs, or sometimes for tax purposes related to inheritance, an inherited property valuation is necessary. Some countries require a valuation of your assets for visa or immigration applications to prove financial standing. In cases of divorce, property disputes, or other legal matters, an independent valuation is often required by courts. If you gift a property, its fair market value might be relevant for gift tax implications.

How can I avoid errors when declaring property value for Schedule AL?

To avoid errors when declaring property value for Schedule AL, always refer to purchase documents. Use your sale deed, registration documents, and receipts for improvements to ascertain the exact cost of acquisition. Maintain meticulous records of all property-related transactions, including purchase price, stamp duty, registration charges, and renovation costs. Distinguish cost from market value. Schedule AL is unique in asking for cost, not current market value. Seek Chartered Accountant (CA) guidance for clarity on complex scenarios, especially regarding inherited property or property with multiple owners. For other needs, consult a valuer if you need a property's market value for capital gains, loans, or other purposes.

Tools and resources for Schedule AL and property valuation compared

Navigating Schedule AL and property valuation can involve various resources. Here is a comparison of where you can get guidance and support:

For Schedule AL, your CA and the official ITD utility are your primary resources for filing. When it comes to understanding the difference between cost and market value, or when you need an actual valuation report for capital gains, loans, or other purposes, a specialist like Rao Valuers can help. Rao Valuers works alongside your CA, providing the precise valuations for various tax-related filings, but not for the Schedule AL cost declaration itself.

Frequently asked questions about Schedule AL and property

Here are some common questions we encounter regarding Schedule AL and property.

Do I need to report my house in Schedule AL if I have a home loan?

Yes, if your total income exceeds ₹50 lakh, you must report your house property in Schedule AL at its cost of acquisition. Additionally, you must also declare the outstanding home loan amount as a liability linked to that asset. This provides a complete picture of your financial position.

Should I report market value or purchase price of my property in Schedule AL?

You must report the purchase price, also known as the cost of acquisition, of your property in Schedule AL. Do not report the current market value. The Income Tax Department specifically asks for the cost incurred to acquire the asset.

What happens if I forget to report an asset in Schedule AL?

Forgetting to report an asset in Schedule AL can lead to discrepancies in your tax filing. The Income Tax Department may issue a notice seeking clarification. If the omission is significant and deemed intentional, it could lead to penalties. It is always best to declare all applicable assets and liabilities accurately.

Is Schedule AL applicable to NRIs?

Yes, Schedule AL is applicable to Non-Resident Indians (NRIs) if their total income in India exceeds the ₹50 lakh threshold. NRIs must report their assets located in India and the corresponding liabilities. For specific guidance on NRI property valuation guidance, you can refer to Rao Valuers' services.

Does inherited property need to be declared in Schedule AL, and at what value?

Yes, inherited property needs to be declared in Schedule AL if you are required to file it. For inherited property, you should declare the cost of acquisition to the previous owner. If that cost is not ascertainable, you can use the fair market value of the property as on the date of inheritance as its cost.

When do I actually need a professional valuation report versus just Schedule AL disclosure?

You need a professional valuation report from a government-approved valuer for situations where the Fair Market Value (FMV) of a property is required, not just its cost of acquisition. This includes calculating capital gains when selling property (especially if acquired before April 1, 2001), obtaining bank loans, settling inherited property disputes, visa applications, or any court-related matters. For Schedule AL itself, you only need to state the cost of acquisition based on your purchase documents.

Rao Valuers is ISO 9001 certified and has been providing accurate, government-approved valuation reports for 35 years. With over 40 expert valuers, Rao Valuers ensures your reports are accepted by banks, tax offices, and courts without questions, delivered typically within 48-72 hours. Rao Valuers provides a reasoned, defensible valuation for property.

If you need a precise valuation for capital gains, bank loans, inherited property, or any other purpose where fair market value is critical (explicitly not for Schedule AL's cost declaration), Rao Valuers can help.

Contact Rao Valuers via WhatsApp for a free consultation. There is no obligation, and your details are never shared. Rao Valuers can clarify how its services fit your specific needs, whether it is for capital gains valuation for property sold after 2001 or any of its other full range of valuation services.