FBR Gets Power to Check Your Wealth

In practice, the Federal Board of Revenue (FBR) has been empowered to require individuals to submit detailed wealth statements for Tax Year 2027, covering the period from July 1, 2026, to June 30, 2027.

Key points

• The authority is provided under Section 116 of the Income Tax Ordinance, 2001.
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• Section 116 additionally requires every resident individual taxpayer who files an income tax return to submit a wealth statement and wealth reconciliation statement along with the return.
• Nevertheless, a spouse's assets are required to be included only if the spouse is dependent on the taxpayer.

Notably, the authority is provided under Section 116 of the Income Tax Ordinance, 2001. It allows the Commissioner to matter a written notice requiring an individual to submit a wealth statement in the prescribed form and manner by a specified date.

As of the dates specified in the notice, the statement can include details of a taxpayer's total assets and liabilities, including foreign assets and liabilities. It may additionally cover assets and liabilities of the taxpayer's spouse, minor children and other dependants. Solar Overtakes Nuclear as Pakistan's Top Electricity Source in 2025.

Nevertheless, a spouse's assets are required to be included only if the spouse is dependent on the taxpayer. The FBR may additionally require details of assets, including foreign assets, transferred to another person during the specified period, along with the consideration received.

Taxpayers may additionally be required to provide details of expenditures incurred by themselves, their spouse, minor children and dependants.

Section 116 additionally requires every resident individual taxpayer who files an income tax return to submit a wealth statement and wealth reconciliation statement along with the return. Members of an association of persons are similarly required to submit these statements with the association's income tax return. Massage Machines Are Becoming More Expensive in Pakistan.

Taxpayers who identify an omission or incorrect statement can submit a revised wealth statement and wealth reconciliation statement, along with reasons for the revision, before receiving a notice under Section 122(9).

In practice, the Commissioner may declare a revision void if it is determined that the amendment does not correct a genuine omission or error. Nevertheless, the taxpayer must first be given an opportunity to be heard.

Meanwhile, the law additionally limits revisions, stating that a wealth statement cannot be revised after five years from the due date for filing the income tax return for the relevant tax year. The provisions offer the FBR a mechanism to seek detailed information on taxpayers' domestic and foreign assets, liabilities and expenditures as part of the wealth declaration and reconciliation process for Tax Year 2027. Stay Connected with ProPakistani.

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In short, FBR Gets Power to Check Your Wealth is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.