What is Wealth Statement?
Every Taxpayer is bound to submit a Wealth Statement under section 116 of the Income Tax Ordinance, 2001 and statement of Wealth Reconciliation for that year along with Income Tax Returns. So the question what is Wealth Statement is basically asked by every taxpayer.
Following are the components of wealth statement includes: –
- All personal assets and liabilities
- Personal assets and liabilities of person’s spouse, child, minor or any other dependents
- Any asset that is transferred by the person to any other person during the tax year
- Total expenses encountered by the person, his spouse, children and all dependents during this period
- The Reconciliation Statement
Detail of personal assets and liabilities
- Agricultural Property
- Commercial, Industrial, Residential Property (Non-Business)
- Business Capital
- Business Capital – Sirotex
- Equipment (Non-Business)
- Animal (Non-Business)
- Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)
- Debt (Non-Business) (Advance / Debt / Deposit / Prepayment / Receivable / Security)
- Motor Vehicle (Non-Business)
- Precious Possession
- Household Effect
- Personal Item
- Cash (Non-Business)
- Any Other Asset
- Any Other Asset – Prize Bonds
- Any Other Asset – Investment
- Assets in Others’ Name
- Total Assets inside Pakistan
- Assets held outside Pakistan
- Capital or voting rights in foreign company
- Total Assets held outside pakistan
- Total Assets
- Credit (Non-Business) (Advance / Borrowing / Credit / Deposit / Loan / Mortgage / Overdraft / Payable)
- Total Liabilities
Detail of Personal Expenses
- Rent
- Rates / Taxes / Charge / Cess
- Vehicle Running / Maintenence
- Travelling
- Electricity
- Water
- Gas
- Telephone
- Asset Insurance / Security
- Medical
- Educational
- Club
- Functions / Gatherings
- Donation, Zakat, Annuity, Profit on Debt, Life Insurance Premium, etc.
- Other Personal / Household Expenses
- Contribution in Expenses by Family Members
Components of The Reconciliation Statement
- Net Assets Current Year
- Net Assets Previous Year
- Increase / Decrease in Assets
- Inflows
- Income Declared as per Return for the year subject to Normal Tax
- Income Declared as per Return for the year Exempt from Tax
- Income Attributable to Receipts, etc. Declared as per Return for the year subject to Final / Fixed Tax
- Adjustments in Income Declared as per Return for the year
- Foreign Remittance
- Inheritance
- Gift
- Gain on Disposal of Assets, excluding Capital Gain on Immovable Property
- Income Attributable to Receipts (Builders/Developers)
- Others
- Outflows
- Personal Expenses
- Gift
- Others
- Loss on Disposal of Assets
- Unreconciled Amount
- Assets Transferred / Sold / Gifted / Donated during the year
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