Individuals earning more than Rs 50 lakh will have to declare net worth now

In a new move, individuals who earn over Rs 50 lakh per year will have to declare the break-up of the net worth.

As per the new guidelines by the I-T Department, individuals will have to disclose all assets and liabilities as on end of financial year 2015-16.

There are two categories in this-moveable and immovable. Under immovable, you will have to declare any land or building, whereas in movable assets, cash in hand (money in your savings account), vehicles (including yacht, boats and aircraft), jewellery, bullion and other valuable metals will have to be declared.

"While further instructions on how to value assets are awaited, taxpayers will find it challenging to value their assets themselves, especially jewellery and vehicles. Salaried individuals do not usually maintain fair market value of jewellery owned or written down allowance (depreciation) of vehicles owned by them," Archit Gupta, CEO and founder, ClearTax.in, told ET.

In the budget 2016, Finance Minister Arun Jaitley brought professionals earning up to Rs 50 lakh a year under presumptive tax. Earlier, under this process of tax-filing, apart from profit declaration no other details were required. The new forms will change this in case you have multiple businesses.