While filing Income Tax Return, the Income Tax Department wants the taxpayers who have annual income of more than Rs. 50Lakh to disclose their various assets and liabilities in the Income Tax Return. This rule was implemented in the year 2016 and it has been modified from time to time since then.
To whom this rule is applicable?
It is not necessary for every taxpayer to disclose their assets and liabilities while filing their Income Tax Return, it is applicable for only those, whose taxable income is more than Rs.50 lakh for the relevant Financial Year. Hence, the taxpayers who are eligible to file ITR1 or Sahaj, are not required to furnish these details. In case you are engaged in a business and thus furnishing your balance sheet in the ITR, you are required to furnish only details of assets which are not already disclosed in the balance sheet.
The taxpayers are supposed to disclose the assets and liabilities while filing Income Tax Return, you must know that the list of assets and liabilities is similar for all the ITR forms except form ITR 3 and 4 wherein you are required to submit the required details of interest in the firm in which you are a partner.