# Schedule Al > Prepare the ITR Schedule AL (Assets & Liabilities) register for a financial year — asset blocks at cost, document-extracted balances (CAS, banks, PPF, NPS), a taxpayer-input checklist, and the asset-linked liabilities test. Use when the user asks to prepare/update Schedule AL, an asset register, or asset disclosures for ITR filing. - Skill: `ankitkr/schedule-al` (Agent Skill) - Install (CLI): `npx skillmds@latest add ankitkr/schedule-al` - Raw SKILL.md: https://api.skillmd.com/api/skills/ankitkr/schedule-al/raw - Safety review: pending - Works with: Claude Code, Claude.ai, OpenAI Codex - Category: Coding & Dev Tools - Author: ankitkr (https://skillmd.com/u/ankitkr) - Updated: 2026-09-17 - Page: https://skillmd.com/skills/ankitkr/schedule-al --- # Schedule AL preparation (ITR-2, India) Produce `Schedule_AL_FY.md` in the tax-year folder. Schedule AL exists in ITR-2/3 only — **ITR-1 (Sahaj) has none** (its ₹50L income ceiling sits below the AL threshold anyway; skip this skill for ITR-1 filers). It is mandatory when total income exceeds the form's threshold — **₹1 crore from AY 2025-26 (was ₹50 lakh through AY 2024-25)**; the applicability line is printed on the schedule screen itself, so verify it for the current AY. It reports every asset **at COST as on 31-Mar** — historical purchase cost, never market/depreciated value. Build it once as a persistent register; from year two, roll it forward. **Inputs to collect first** (via the `itr-reconcile` intake checklist): prior-year filed return (for the YoY continuity table), consolidated CAS, bank/PPF/NPS statements, PMS statements — and from the taxpayer: property purchase costs, vehicle on-road cost, jewellery/gold/cash estimates, loan details. Ask them to download/add anything missing to the tax folder before you build the register. ## ITR-2 structure to fill A. Immovable property (each property a separate row with address) · B(i) jewellery/bullion · B(ii) art · B(iii) vehicles · B(iv) financial assets: (a) bank incl. all deposits (FDs; PPF typically here) (b) shares & securities (c) insurance policies (d) loans given (e) cash in hand · C. Liabilities **in relation to** the assets at A+B. ## 1. FIXED blocks — carry forward verbatim (cost never changes) - **Immovable property at purchase cost.** ⚠️ List **each parcel as a separate row** even at one location — the schedule wants per-property rows, not clubbed totals. - **Inherited/gifted assets at the PREVIOUS owner's cost** (+ improvements) per the official instructions; where that cost is unascertainable, the circle/bullion rate as on the acquisition date may be used. - **Vehicles at on-road cost** (incl. GST + registration). - **Unlisted/startup equity at ACTUAL cost incl. premium** — never face value (it also sets the cost base for a future sale). **Options / CCPS / SAFEs / convertibles are NOT equity shares** → they stay out of the unlisted-equity-shares schedule (Part A general) and sit in AL "shares & securities/other". - Each year ask only: anything bought or sold in this block? ## 2. GROWS by additions — prior figure + this year's additions - **ULIPs / investment insurance at cumulative premiums paid** — that IS the cost basis the form mandates; surrender/fund value is market value, not cost — don't use or switch to it. Term & health covers are expenses, NOT assets — never include. - **Jewellery + physical gold at cost where known** (invoices/card statements); a documented taxpayer estimate is the FALLBACK for old/inherited pieces without records — fix it once, don't re-mark it each year (cost never changes; only additions move the figure). **If additions were bought on a credit card, get the transaction list**: cost goes into B(i) AND dues unpaid at 31-Mar go to Part C (see §4). - **Digital gold/silver platforms** (e.g. Gullak/Augmont, eBullion): cost of grams **still held on 31-Mar** = lifetime invested per the app/annual statement MINUS the cost of anything sold/redeemed; leased-out grams are still owned; interest-grams enter at their taxed value. - **NPS Tier I at cumulative contributions** (that is the cost figure; the statement's market value is not — use the CRA statement only to source the contribution history). ## 3. EXTRACT from documents each year (don't ask) - **Consolidated CAS (CDSL/NSDL)**: per-demat and MF-folio values as on 31-Mar → "shares & securities". Note in the doc: AL prefers cost; CAS gives VALUE only — cost comes from broker holdings CSVs and PMS audited statements ("Investments - At Cost"), and **MF-folio cost via camsonline.com → Statements → "CAS – CAMS + KFintech" (mailback to the registered email; one request covers BOTH RTAs and carries a Cost Value column per folio as on the chosen date) — the depository eCAS never carries MF cost**. ⚠️ Dedupe that CAS before summing: its "(Demat)" rows are usually PMS-held units already inside the PMS audited cost, and **a PMS can also run a direct liquid-fund folio under the client PAN** (registered to the PMS's ops email) that appears in the depository folio list AND inside the PMS audited investments — count it once (the AL-side sibling of the RTA-vs-PMS capital-gains dedup). Cost is the mandated basis — use the cost sources above and keep the SOURCING consistent YoY (never silently switch a line from cost to value). **SGBs are securities (inside demat), not bullion.** - **Bank closing balances 31-Mar** from statements/interest certificates. ⚠️ **Take the running balance at the last transaction dated on/before 31-Mar** (statements can be reverse-ordered or run into April) — a late-March credit (e.g. a 30-Mar dividend) can land after a mid-scan balance and silently understate the figure. - **FD principal**: ⚠️ certificates can list the **same deposit twice** after a branch migration (same deposit number, two branch rows) — dedupe principal; the interest legs are usually distinct periods and all count. - **PPF closing balance** from the statement (interest credited 31-Mar is exempt → Schedule EI, not income). - **EPF closing balance** from the passbook (employee + employer shares incl. credited interest; the EPS pension corpus stays out). **No official AL mapping exists for EPF/NPS**: majority practice reports both under "shares & securities" (PPF under bank-deposits); a contra practitioner view treats them as outside AL's enumerated fields. Pick the inclusive mapping, record the stance in the register, keep it consistent YoY. - **PMS cash-equivalents caveat**: audit statements' "cash & equivalents" include liquid-MF units — those are securities; only the pure bank balance goes under bank. ## 4. ASK the taxpayer each year (they hold these numbers) Ask in one batch: 1. **PMS-operated current-account balances 31-Mar** (accounts in the taxpayer's name via POA). Negative balance → report 0 as asset and the overdrawn amount under liabilities. 2. **Cash in hand** (their actual; re-ask every year, never reuse). 3. **Platform lifetime-invested figures AND any redemption/sale history** (digital gold etc. — the disposals are needed to net their cost out per §2). 4. **Additions**: jewellery/gold, ULIP premiums, property/vehicle/unlisted shares, loans given. 5. **Spouse-funded investments (clubbing)**: expert views differ — if the taxpayer funded an asset AND is a joint owner, declare the full cost in their AL; if it sits solely in the spouse's name, it is effectively a gift and stays out of the funder's AL (the income may still club for tax). 6. **Liabilities — apply the two-prong test.** Part C is "liabilities *in relation to* Assets at (A+B)", so a liability qualifies only if it was **(1) outstanding on 31-Mar AND (2) financed a disclosed A/B asset**. Loans against property/vehicles/securities qualify. **Credit-card dues qualify only for the slice that bought an asset** (e.g. jewellery on card, statement due in April) — and that purchase cost must sit inside the asset side too, so the funding story is self-explaining. **Tax payments and consumption charges on the same unpaid statement do NOT qualify** (outstanding, but they relate to no A/B asset; tax credits live in Schedule IT). Keep the card statement + settlement proof as evidence. ## 5. Rules & hygiene - **Foreign assets go in BOTH schedules** (CBDT Circular 18/2019, Q.14) — FA-reported assets must ALSO appear in Schedule AL when AL applies; the overlap is intended. Mind the period asymmetry: FA = calendar year at initial/peak/closing values; AL = held-on-31-Mar at cost. A foreign stock held a day mid-CY → FA only; one bought Jan–Mar → AL now, FA only next year. Crypto has NO dedicated AL row (even in the AY 2026-27 forms) — report 31-Mar holdings at cost under shares & securities. - Only assets **held on 31-Mar** enter AL — a buy-and-sell within the year never appears (its proceeds sit in the bank line; gains in Schedule CG). - **Always build a YoY continuity table vs the prior filed return's Schedule AL** (from the prior ITR JSON/ack). Flag any category that moves without purchases/sales to explain it; decompose big moves (basis-completion vs estimate revision vs real purchases). - MONEY gifts from relatives are not separate AL lines — the cash lands in the bank-balance line; note them as funding trail (Schedule EI if exempt). An ASSET received as gift DOES sit in its normal AL block at the previous owner's cost (§1). - **Verify totals programmatically** (python bottom-up sum of every component) before writing the doc, and again against the portal screen before Confirm. - Materiality: AL is disclosure-only (no tax effect) and carries **no dedicated penalty** — but unexplained assets invite s.69/69A/69B additions taxed ~78% u/s 115BBE plus the s.271AAC penalty (s.270A where it applies instead), and AL↔AIS mismatches are scrutiny triggers. The department reads AL as *assets + the borrowings that explain them* — keep pairings coherent and the register documented.