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

Income Tax
1

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).