Business income above ₹1 crore? You must make this disclosure in your ITR before August 31 deadline

If your business income was more than ₹ 1 crore in FY 2025-26, then you have an additional disclosure to make while filing your income tax return (ITR) before the August 31 deadline. Besides reporting your income, you must also disclose your assets and liabilities under Schedule AL of the relevant ITR form.

This mandate applies to individual taxpayers, as well as Hindu undivided families (HUFs) with income exceeding the above mentioned threshold. Adhering to this compliance requirement is particularly important because incorrect or incomplete disclosures can attract notices from the tax department.

“Schedule AL applies to Individuals and Hindu Undivided Families ( HUFs ) who are required to file this return and whose total income exceeds Rs. 1 crore in the financial year. This schedule mandates disclosure of details related to assets and liabilities held at the end of the year," the tax department says on its website.

It also mentioned that this disclosure requirement is aimed at ensuring greater financial transparency and helping curb tax evasion.

Schedule AL applies to both individual and HUF taxpayers who have income from business or profession. It also applies to those who do not have business or professional income but earn more than ₹ 1 crore in a financial year through salary, capital gains or other sources.

You can make this disclosure in both ITR-2 and ITR-3, depending on your income profile and source of earnings.

Meanwhile, companies filing ITR-6 are required to furnish details of their assets and liabilities through Schedule AL-1 and Schedule AL-2.

Additionally, the assessee must disclose liabilities in relation to these assets:

Taxpayers who are filing ITR before the August 31 deadline should prepare a statement of their assets and liabilities as on 31 March 2026, which is when the financial year 2025-26 ended.

As per a Cleartax report, here are a few guidelines that a taxpayer must comply with while filing Schedule AL in their relevant ITR form:

Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers.