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Returns filing: Wealth statement likely to be mandatory from FY15

Returns filing: Wealth statement likely to be mandatory from FY15

ISLAMABAD: The Federal Board of Revenue is likely to make mandatory submission of wealth statement for all taxpayers, irrespective of the existing limit of income exceeding Rs1 million, from next budget for 2014-15.

According to details, through Finance Act 2013, it was made mandatory for all taxpayers to submit wealth statement irrespective of amount of their income declared in tax returns. Under the Act, every resident being an individual or member of an AOP filing return of income, or statement under sub-section (4) of section 115 was required to file wealth statement along with reconciliation of wealth statement. The condition was enforced from the tax year 2013. Moreover, where a person having furnished a wealth statement, intends to furnish a revised wealth statement such person is also required to file the revised wealth reconciliation and the reasons for filing the revised wealth statement.

On the other hand, this budgetary measure (2013-14) was strongly criticised by the representatives of the business community. However, on the request of business community, the condition of compulsory filing of wealth statement was relaxed and only those taxpayers were required to submit wealth statement whose taxable income exceeds Rs1 million.

This relaxation was for a period of one year and now the FBR is likely to restore it in the next budget (2014-15). It is to be noted that under SRO-978(I)2013, filing of wealth statement was no more mandatory for all taxpayers. The condition of Rs1 million was reinstated for individuals/AOPs for mandatory filing of wealth statements.