The wealth statement — officially the Statement of Assets and Liabilities — is filed alongside your annual income tax return and lists everything you own and owe as of 30 June. It's also the part of the return most likely to trigger an FBR inquiry, because a single unexplained gap between what you owned last year and what you own now can bring a Section 111 notice.
The Rule FBR Applies
FBR's reconciliation logic is simple in principle: opening wealth, plus everything you earned, minus everything you spent, should equal your closing wealth. Any surplus that this formula can't explain is treated as unexplained income and taxed accordingly, with penalties on top.
What You Must Declare
- Property — every plot, house, or commercial unit, valued at the higher of FBR's rate or actual cost
- Vehicles — make, model, and year for anything registered in your name
- Bank balances — every account, including foreign-currency accounts, as of 30 June
- Investments — shares, mutual fund units, prize bonds, savings certificates
- Cash in hand and jewellery — with realistic current values
- Business capital — your net stake in any proprietorship or partnership
- Liabilities — loans, credit card balances, and advance rent or deposits you've received
Where People Get It Wrong
The most frequent slip is leaving out a spouse's or minor child's property and bank accounts — FBR expects household wealth to be traceable even when assets sit in a family member's name. Another common issue is declaring property at an unrealistically low value instead of the FBR-prescribed rate, and a third is understating household expenses so heavily that the numbers look implausible on their face, which itself invites scrutiny.
If Your Wealth Grew More Than Your Income
An increase in wealth beyond what your declared income can explain isn't automatically a problem — but it needs a paper trail. A documented loan, a gift with a proper deed, an inheritance, or savings carried over from a prior year can all justify the gap. What FBR won't accept is silence; if the return doesn't explain it, the CREST system flags it, and a notice usually follows.