ITR 3, Schedule AL

Thank you, Sir. 

Be careful while filling out Schedule AL. Draw a Balance Sheet as on 31.03.2024 ( Statement of Affairs as of 31.03.2024) considering all assets and liabilities. Drawing the balance sheet for the first time is a bit difficult job. Any asset owned jointly should also be included considering his share in that joint property.

Declared without creating balance sheet. What kind of  issues will it create? 

If at any time some assets are discovered whcih are not there in the Sch AL then the ITD may presume them to be assets acquired out of undisclosed income and may proceed accordingly if you can explain it satisfactorily then nothing will happen but otherwise, it may result in tax, interest and penalty and even prosecution. 

You still have time to draw a complete balance sheet and revise the ITR and fill up Sch AL properly

Schedule AL in ITR-3 is mandatory if your total income (before deductions) exceeds Rs 50 lakh in the financial year. Below that threshold, you skip it.

What to report and how to value:

Immovable property (land, buildings): report COST OF ACQUISITION, not current market value or stamp duty circle rate. If jointly owned, report only your share of the acquisition cost.

Movable assets:
- Motor vehicles: purchase price
- Jewellery: cost of acquisition (or fair market value as of 01.04.2001 if inherited earlier)
- Cash in hand: actual balance at 31 March
- Bank balance: balance at 31 March across all accounts
- Shares and securities: cost of acquisition (not current value)
- Loans and advances given: outstanding balance at 31 March

Liabilities:
- Home loans, car loans, personal loans: outstanding principal at 31 March
- Business liabilities if any: outstanding amounts

Two common mistakes to avoid:
1. Reporting market value for property instead of cost price.
2. Skipping jewellery or cash on hand because it feels informal. Both are explicitly required.

The ITR-3 utility does not auto-populate Schedule AL. You enter the figures manually and they do not flow from any other schedule.

This [pre-filled ITR verification guide for AY 2026-27](https://taxgarden.in/blog/pre-filled-itr-how-to-verify-check-correct-errors-ay-2026-27) covers the full list of fields to check before submitting your return.