Schedule AL - Insurance

In Schedule AL (Assets and Liabilities) of the Income Tax Return (ITR), reporting is required only if your total income exceeds ₹50 lakhs in a financial year.

Let’s address your questions directly:

🔹 Can term insurance, vehicles, and house insurance be shown in Schedule AL?

1. Term Insurance:
❌ Not to be reported

• Term insurance has no maturity value or surrender value—it's a pure risk cover, not an asset.

• Hence, term insurance policies are not reported in Schedule AL.

2. Vehicle Insurance:
❌ Do not report the insurance, but...
✅ Report the vehicle itself

• The vehicle (car, bike, etc.) is an asset and must be declared under the “Movable Assets” section.

• Insurance premiums or policy values are not reported—only the asset value of the vehicle.

3. House Insurance:
❌ Do not report the insurance, but...
✅ Report the house/property itself

• The immovable property (house, flat, land) is reported in Schedule AL.

• Again, the insurance coverage/premium for the house is not relevant here.

🔹 What value is to be reported? Premiums paid or insurance coverage amount?

Neither. ✅

• For assets, you report their cost of acquisition, not premiums paid or insurance cover.

• Example:

  • If you bought a car for ₹8 lakhs, report ₹8 lakhs, even if it’s insured.

  • If you bought a house for ₹70 lakhs, report ₹70 lakhs, regardless of its insurance or current market value.

✅ Summary Table: