India has made significant progress in improving the enrolment of students with disability but still has a long way to go before schools can be called inclusive. Despite the widely acknowledged relevance of assessments in shaping teaching and learning practices, little research has been done in disability-inclusive assessment in the Indian setting. In this paper, we explore teachers' perceptions of disability inclusion in formative assessments, including the use of various kinds of accommodations and adaptations, factors that affect the implementation of disability-inclusive formative assessments, and challenges. It is argued that teacher professional development and teacher-parent partnerships are essential for ensuring the inclusion of students with disability in formative assessments. Unless assessment is given its due importance in disability-inclusive education, achievement gaps between children with and without disability may widen due to the unavailability of learning data and its use.