Schedule AL-2 – Detail of Assets and Liabilities of Start-ups

‘Schedule AL-2’ in the Income Tax Return (ITR) form applies to start-up companies that have filed a declaration in Form-2 under Para 5 of the DPIIT Notification GSR 127 (E) dated 19.02.2019. Such eligible start-ups must furnish a statement of assets and liabilities held from the date of incorporation up to the end of the relevant financial year. This schedule aims to enhance transparency regarding the financial holdings and transactions of start-up companies.

Schedule AL-2 requires disclosure of immovable properties acquired since incorporation, including both residential and non-residential properties, along with their addresses, costs, usages, and whether the properties have been transferred within the year. It also requires reporting of loans and advances made (if lending is not the company’s main business), with details such as the recipient’s PAN, amount, repayment status, interest charged, and closing balances.

Further, the schedule captures information on capital contributions to other entities and acquisition of shares or securities, specifying relevant details such as PAN, cost, date of acquisition, transfer status, and closing holdings. It also requires information on high-value movable assets like vehicles (cost exceeding Rs. 10 lakh), jewellery, artworks, and other valuable items acquired since incorporation, including usage and transfer details

Lastly, Schedule AL-2 includes a section on liabilities, capturing details of loans, deposits, and advances taken from persons other than financial institutions. Disclosures include lender’s PAN, opening and closing balances, amounts received or paid, interest debited, and applicable interest rates.

This schedule applies to ITR-6.