6 mandatory disclosures in your ITR that you shouldn’t miss out

Income Tax
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ITR filing for Assessment Year 2024-25 has started, and it’s mandatory to file an ITR if your income exceeds the basic exemption limit.

While you may rightly report your incomes and pay taxes on them, there are certain important disclosures you might overlook and this can lead to penalties.

Let’s have a look at them.

  1. Bank accounts: You need to mention all your active bank accounts with details like the account number and the IFSC code. You’ll also have to select a primary bank account which will be the one on which your income tax refund is issued.

  2. Directorship in the company: If you are a director in an Indian or overseas company, it is mandatory to disclose the details of such directorship when filing the ITR. You will have to mention details of the company like the name, PAN etc. and also your DIN (director identification number).

    Remember, in this case, you cannot file ITR-1 or ITR-4 as the relevant schedule is not available in these forms. You’ll have to file ITR-2 or ITR-3 based on your sources of income.

  3. Holding unlisted shares: If you hold any unlisted shares, you will have to report these in your ITR. Here, you need to report such shares even when you have not sold them unlike in case of listed shares where you need to report the profits/losses only when you sell the shares.

  4. Assets and liabilities: If your income for the year exceeds ₹50L, you are required to fill Schedule AL in your ITR. Under this, you need to disclose the assets you own like any immovable property, movable property like shares and securities etc., and any liabilities that you may have against these assets, like a home loan.

  5. Foreign assets: Holding of any assets outside of India like shares/ESOPs of a foreign company, overseas property or even a foreign bank account needs to be reported if you are an Indian resident.

    The ITR form has a separate section where you will be required to enter the details of your foreign holdings which is called Schedule FA (Foreign Assets).

  6. Exempt incomes: There are some incomes specified in the Income Tax Act on which you do not have to pay any taxes. This includes gifts, agricultural income, interest from government schemes like PPF and SSY, etc. However, even if you do not have to pay any taxes on these incomes, it is mandatory to report them in the ITR under Schedule EI (Exempt Income).

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Hi @Surbhi_Pal, Can you please help me with these queries:

  • When will the director option be available on Quicko?

  • I work as a professional and doing export of services. (0 rated GST) Do I need to provide balance sheet details for my profession (opting for 44ADA) and F&O? While filling ITR on Quicko, it asks for these details. Is it mandatory? Taxable income is around 28-30lakhs.

  • I have shares from an Indian company (unlisted - ESOPs) that vested in May 2023 (not yet sold). Is it possible to exclude this information?

  • One off-topic question: What would happen if we defer filing the tax return for a private company (with no revenue and no expenses) until next year and pay the applicable penalty? Would this affect me as a director of the private company?

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@Surbhi_Pal A gentle reminder for the query. Could you please help me with the above doubts?

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Hey @Yash_123,

  1. The feature for adding directorship details on Quicko is in pipeline. Keeping the due date in mind, as an alternative, you can add rest all the details, download JSON file, and use the income tax utility to add the details.

  2. Yes, balance sheet details are necessary.

  3. Disclosure of unlisted shares is mandatory.

  4. Not sure about this one, let me get in touch with my team and get back.

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Thanks @Surbhi_Pal for the detailed response.

  • Where to get the JSON file? Is it appears before e-verifying?
  • What to mention in balance sheet for software consultancy business and F/O business? For F/O I have a minor loss and have profit from consultant business, but as I’m opting for 44ADA (50-55% profit), should I directly mention about it, because it is difficult to manage or figure out the actual asset, expenses details.
  • Where I can disclose the details of unlisted shares in quick, unable to find the option?
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Hey @Yash_123,

  1. At the last step before you e-file your return, you’ll be able to download the JSON file.
  2. You’ll have to add two separate businesses and the balance sheet for both of these will be separate. You can still disclose one of the businesses as normal business and the another one under presumptive scheme.
  3. We do support adding capital gains from unlisted shares, however disclosing holdings in unlisted shares is not supported at the moment.
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Hi @Surbhi_Pal , Thanks again for the detailed answer.

I have a doubt regarding the need to maintain the balance sheet for 44ADA. If we need to maintain it, then what’s the benefit of the presumptive income scheme? How about only mentioning this under the presumptive section in the PL schedule? If it is important to maintain the balance sheet, would the following approach be fair enough?

  • Suppose I have 24 lakhs as income from consulting services (exporting services for a US client). Under proprietary funds, should I mention that I put 24 lakhs (my initial capital) in “Proprietor’s Capital” in the “Sources of Funds” section? Then, in the “Application of Funds” section, I enter 12 lakhs in “Other Current Assets” and put 12 lakhs (Miscellaneous expenditure not written off or adjusted) in “(4-a).

  • Also, for F&O, suppose I have a 12k balance on 31st March. Should I mention that directly, like putting 12k in “Proprietor’s Capital” in the “Sources of Funds” section and entering 12k in “Other Current Assets” in the “Application of Funds” section? Or do I need to follow the above-mentioned approach?

  • Do we have option to maintain multiple balance sheet in ITR portal, I can see only single BS. While Quicko maintained two different BS sheet but in the json utility it merged both the BS into single one. Can you please also share how to do in this scenario?

Additionally, I work as a consultant exporting services. Do I need to mention that the amount is coming from outside of India as foreign income?

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Hey @Yash_123,

If you are opting for presumptive taxation, you’ll not have to maintain books of accounts. Moreover, for businesses the section is 44AD where you report minimum 6% as turnover as profits. 44ADA is for professions.

If you are reporting F&O as normal business, here’s a detailed guide which also includes how to fill the balance sheet: FY23-24: Step-by-step guide on filing tax return for traders – Z-Connect by Zerodha

1 Like
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Thanks for the clarifications! It is really very helpful
Can you please share about this point as well -

Additionally, I work as a consultant exporting services. Do I need to mention that the amount is coming from outside of India as foreign income?

I do export of software services to US client and files 0 rated GST and as it is a professional income hence I’m opting for 44ADA for this income. However, I saw in ITR there is section for foreign income, do I need to mention the amount as foreign income? I don’t have any assets outside India just receive the consultant fees from US: Consequences of not reporting foreign assets, income - How to report foreign income in ITR: Types of foreign income you need to report in ITR, which ITR form to use | The Economic Times

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Hello,
I am holding shares of a company which was delisted and appointed Liquidator by NCLAT many years back. The shares still show in my dmat account. Do I need to mention these shares in the ITR as mandatory disclosure?
Thanks,