Wealth Statement in Pakistan, What Every Filer Must Know for ITR

FBR uses a specific formula: previous year's closing wealth + this year's income − this year's personal expenses = current closing wealth. If it doesn't balance, the gap is treated as unexplained income.

Every rupee of income earned and personal expense spent must be accounted for, any gap raises an immediate question FBR will ask you to answer.

Personal expenses (food, clothing, travel, household, school fees) are completely separate from business expenses and never deductible, but they must still be declared in the wealth statement.

Careless or incomplete wealth statements create reconciliation problems and can result in unexpected tax demands during scrutiny or audit.

Your wealth statement is not a formality, it is a legally verified financial declaration that must be accurate, complete and supported by your actual records every single year.