FBR COMPLIANCE SERVICE
Wealth Statement Filing in Pakistan
Every individual and AOP member whose income exceeds the prescribed threshold must file a wealth statement under Section 116 of the Income Tax Ordinance 2001. Irshad & Co. prepares, reconciles, and files your wealth statement accurately and on time.
UNDERSTANDING WEALTH STATEMENTS
What is a Wealth Statement Under Section 116?
A wealth statement, filed on Form 116, is a formal declaration of all assets, liabilities, and personal expenses held by a taxpayer, their spouse, and dependents as of the last day of the tax year. It is filed under Section 116 of the Income Tax Ordinance 2001 and captures everything from property and vehicles to bank balances, investments, and outstanding loans.
Every resident individual who is required to file an income tax return, including business owners, AOP members, salaried persons above the prescribed income threshold, and NTN holders, must also submit a wealth statement. It is a mandatory companion filing, not an optional add-on.
Alongside the income tax return, the wealth statement lets FBR compare your declared income against the year-on-year change in your net worth. Any unexplained increase in wealth that outpaces declared income can trigger scrutiny, making accurate reconciliation essential.
116
Section of ITO 2001 governing wealth statements
2
Statements filed together: wealth & reconciliation
Annual
Filed every tax year alongside your return
OUR SERVICE
What's Included in Our Wealth Statement Service
Asset & Liability Documentation
We compile a complete, categorised record of your immovable property, vehicles, bank balances, investments, and outstanding liabilities as of the tax year-end.
Wealth Reconciliation Statement
We prepare the reconciliation of wealth, explaining the movement in your net assets against declared income, gifts, and personal expenses for the year.
IRIS Submission
We complete and submit Form 116 along with the reconciliation statement through FBR's IRIS portal ahead of your return deadline.
Prior-Year Comparison
We compare this year's declared wealth against your previously filed statement to confirm figures align and no anomalies are triggered.
Discrepancy Resolution
Where reported wealth does not match declared income, we identify the gap and prepare supporting explanations and documentation before submission.
FBR Notice Support
If FBR raises a query or notice regarding your wealth statement, we prepare and file a complete, well-documented response on your behalf.
ELIGIBILITY
Who Must File a Wealth Statement?
Individuals Above Income Threshold
Resident individuals whose declared income exceeds the threshold prescribed by FBR for return filing must also file a wealth statement.
Business Owners
Sole proprietors and business individuals filing an income tax return must submit a corresponding wealth statement every year.
AOP Members
Every member of an Association of Persons required to file a return must also declare their personal wealth on Form 116.
Owners of Property or Vehicles
Individuals who own immovable property or vehicles above the value specified by FBR fall within the mandatory filing requirement.
NTN Holders
Anyone holding a National Tax Number, whether registered voluntarily or on FBR's directive, is required to file a wealth statement with their return.
Salaried Persons Above Specified Income
Salaried individuals whose annual income exceeds the limit set by FBR must file a wealth statement alongside their return.
HOW IT WORKS
Our Wealth Statement Filing Process
01
Asset/Liability Collection
We gather details of all your assets, liabilities, bank accounts, property, vehicles, and investments as of the tax year-end.
02
Reconciliation & Computation
We compute the movement in your net wealth and reconcile it against declared income, expenses, and any gifts received.
03
IRIS Filing
We prepare Form 116 and the reconciliation statement and submit both through FBR's IRIS portal alongside your income tax return.
04
Confirmation & Record-Keeping
We confirm successful submission and maintain organised records of your wealth statement for future reference or audit.
FAQ
Frequently Asked Questions - Wealth Statement
What is a wealth statement in Pakistan?
A wealth statement is a declaration filed under Section 116 of the Income Tax Ordinance 2001, listing all assets, liabilities, and personal expenses of a taxpayer and their dependents as of the tax year-end.
Who is required to file Form 116?
Every individual required to file an income tax return, including business owners, AOP members, salaried persons above the prescribed income threshold, and NTN holders, must also file Form 116.
What happens if wealth doesn't reconcile?
When declared wealth does not reconcile with declared income, FBR may treat the unexplained difference as concealed income and issue a notice requiring justification or supporting documentation.
Is wealth statement mandatory with every tax return?
For most individual filers, yes. Submitting a wealth statement alongside the income tax return is a statutory requirement under Section 116, not an optional attachment.
What's the penalty for non-filing?
Non-filing can result in penalties under the Ordinance, removal from the Active Taxpayer List, and follow-up notices from FBR requiring immediate compliance.
Stay Compliant With Your Wealth Statement Filing
Let Irshad & Co. handle your asset documentation, wealth reconciliation, and IRIS submission — accurate, complete, and filed on time.
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