Karachi, November 18, 2025 – The Federal Board of Revenue (FBR) has announced penalties for taxpayers who fail to submit their wealth statements for the tax year 2025.
Officials stated that individuals who do not furnish their wealth statement or wealth reconciliation statement will face a penalty of 0.1% of their taxable income per week or Rs. 100,000, whichever is higher.
Under Section 116 of the Income Tax Ordinance, 2001, the FBR requires individuals to submit wealth statements detailing:
• Total assets and liabilities, including foreign assets, of the taxpayer as of the specified date.
• Assets and liabilities of the taxpayer’s spouse, minor children, and other dependents, if applicable.
• Any transfers of assets, including foreign assets, and the consideration received during the specified period.
• Total expenditures of the taxpayer and their dependents during the period.
• A reconciliation statement of wealth.
Resident taxpayers must submit the wealth statement along with their annual income tax return. Members of associations of persons (AOPs) are also required to provide wealth statements with the AOP’s tax return.
Taxpayers who identify omissions or errors in their submitted wealth statements may file a revised statement along with updated reconciliation and reasons for revision before receiving a notice under Section 122(9). However, revisions are considered void if deemed not made in good faith. Wealth statements cannot be revised after five years from the return’s due date.
The FBR emphasizes timely submission to ensure compliance with tax regulations and avoid substantial penalties.