CHAPTER 5

Return of income and wealth statement

Few relevant provisions of the law
Section 115 - Persons not required to furnish a return of income. (Relevant portion of
the section)After
omission
of
1
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Section 115(1), Filing of
return
by
salaries
taxpayers is mandatory
Section 116 - Wealth statement.
if salary income for Tax
Year 2013 exceeds Rs.
2
(1)
[The] Commissioner may, by notice in writing, 400,000/-. E-filing is
require any person 3[being an individual] to furnish, on the mandatory
where
date specified in the notice, a statement (hereinafter income is Rs. 500,000
referred to as the "wealth statement") in the prescribed or more.
form and verified in the prescribed manner giving
particulars of (a)
the persons total assets and liabilities as on the date or dates
specified in such notice;
(b)
the total assets and liabilities of the persons spouse, minor
children, and other dependents as on the date or dates specified in such
notice;
(c)
any assets transferred by the person to any other person during
the period or periods specified in such notice and the consideration for
the transfer;4[ ]
(d)
the total expenditures incurred by the person, and the persons
spouse, minor children, and other dependents during the period or
periods specified in the notice and the details of such expenditures; and
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[(e) the reconciliation statement of wealth.]
(2)
Every resident taxpayer 6[being an individual,] filing a return of income for any
tax year 7[] shall furnish a wealth statement 8[and wealth reconciliation
1

Sub-Section (1) omitted by Finance Act, 2013.

Substituted for Subject to subsection (2), the by Finance Act, 2007.

Words inserted by Finance Act, 2013.

Word and omitted by Finance Act, 2009.

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5

Clause (e) inserted by Finance Act, 2009.

Words inserted by Finance Act, 2011.

The words etc whose last declared or assessed income or the declared income for the year, is one
million rupees or more omitted by Finance Act, 2013.

Words inserted by Finance Act, 2009.

statement] for that year along with such return1[:]

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[Provided that every member of an association of persons 3[ ] shall also furnish

wealth statement and wealth reconciliation statement for the year along with
return of income of the association.]
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[(2A) Where a person, being an individual or an association of persons, files a return in

response to a provisional assessment order under section 122C, such return shall
be accompanied by wealth statement along with a wealth reconciliation
statement and an explanation of source of acquisition of assets specified therein
in the case of an individual and wealth statements of all members in the case of
an association of persons and such wealth statements shall be accompanied by
wealth reconciliation statements and explanation of source of acquisition of
assets specified therein].

[(3)

Where a person, who has furnished a wealth statement, discovers any omission
or wrong statement therein, he may, without prejudice to any liability incurred
by him under any provision of this Ordinance, furnish a revised wealth statement
[along with the revised wealth reconciliation and the reasons for filing revised
wealth statement] at any time before an assessment, for the tax year to which it
relates, is made under sub-section (1) or sub-section (4) of section 122.]

Section 118 - Method of furnishing returns and other documents.

(1)

A return of income under section 114, 6[ ] a statement required under subsection (4) of section 115 or a wealth statement under section 116 shall be
furnished in the prescribed manner.

(2)

A return of income under section 114 or a statement under subsection (4) of

section 115 of a company shall be furnished (a)

(b)

in the case of a company with a tax year

ending any time between the first day of
January and the thirtieth day of June, on or
before the thirty-first day of December next
following the end of the tax year to which
the return relates; or
in any other case, on or before the thirtieth
day of September next following the end of
the tax year to which the return relates.

Last date for filing

of
return
for
salaried taxpayer is
31st of August.

Substituted . by Finance Act, 2011.

Proviso inserted by Finance Act, 2011.

Words etc whose share from the income of such association of persons, before tax, for the year is
one million rupees or more omitted by Finance Act, 2013.
Sub-section (2A) substituted by Finance Act, 2011.

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Sub-section (3) inserted by Finance Act, 2003.

Words etc. omitted by Finance Act, 2013.

[(2A) Where salary income for the tax year is five hundred thousand rupees and more,
the taxpayer shall file return of income electronically in the prescribed form and
it shall be accompanied by the proof of deduction or payment of tax and wealth
statement as required under section 116.]

(3)

A return of income for any person (other than a company), an Annual Statement
of deduction of income tax from salary, filed by the employer of an individual or
a statement required under sub-section (4) of section 115 shall be furnished as
per the following schedule, namely:3
[(a) in the case of a statement required under sub-section (4) of section 115
or a return required to be filed through e-portal in the case of a salaried
individual, on or before the 31st day of August next following the end of
the tax year to which the statement or return relates; or]
(b)

in the case of a return of income for any person (other than a company),
as described under clause (a), on or before the 30th day of September
next following the end of the tax year to which the return relates.

(4)

A wealth statement shall be furnished by the due date specified in the notice
requiring the person to furnish such statement or, where the person is required
to furnish the wealth statement for a tax year under sub-section (2) of section
116, by the due date for furnishing the return of income for that year.

(5)

A return required to be furnished by a notice issued under section 117 shall be

furnished by the due date specified in the notice.

(6)

Where a taxpayer is not borne on the National Tax Number Register and fails to
file an application in the prescribed form and manner with the taxpayers return
of income 4[ ], such return 5[ ] shall not be treated as a return 6[ ] furnished under
this section.

Section 119 - Extension of time for furnishing returns and other documents.
(1)

A person required to furnish (a)

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[]

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3

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5
6
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a return of income under section 114 or 117;

Sub-section (2A) inserted by Finance Act, 2013.

Sub-section substituted by Finance Act, 2010.
Clause (a) substituted by Finance Act, 2013.
(a)
In the case of an Annual Statement of deduction of income tax from salary, filed by the
employer of an individual, return of income through e-portal in the case of a salaried person or a
statement required under sub-section (4) of section 115, on or before the 31st day of August next
following the end of the tax year to which the return, Annual Statement of deduction of income tax
from salary, filed by the employer or statement relates.
Omitted or employers certificate by Finance Act, 2013.
Omitted or certificate by Finance Act, 2013.
Omitted or certificate by Finance Act, 2013.
Clause (b) omitted by Finance Act, 2013.

(c)
(d)

(2)
(3)

a statement required under sub-section (4) of section 115; or

a wealth statement under section 116,

may apply, 1in writing, to the Commissioner for an extension of time to furnish
the return, [ ] or statement, as the case may be.
An application under sub-section (1) shall be made by the due date for furnishing
the return of income, 2[ ] 25[ ] or statement to which the application relates.
Where an application has been made under sub-section (1) and the
Commissioner is satisfied that the applicant is unable to furnish the return of
income, 3[ ] or 4[ ] statement to which the application relates by the due date
because of
(a)

absence from Pakistan;

(b)

sickness or other misadventure; or

(c)

any other reasonable cause,

the Commissioner may, by 5[order], in writing, grant the applicant an extension

of time for furnishing the return, 6[ ] or statement, as the case may be.
(4)

An extension of time under sub-section (3) should not exceed fifteen days from
the due date for furnishing the return of income, employers certificate, or
statement, as the case may be, unless there are exceptional circumstances
justifying a longer extension of time.

(6)

An extension of time granted under sub-section (3) shall not, for the purpose of
charge of additional tax under sub-section (1) of section 205, change the due
date for payment of income tax under section 137.

Omitted certificate, by Finance Act, 2013.

Words omitted employers certificate, by Finance Act, 2013.
Omitted for employers certificate, by Finance Act, 2013.
Words wealth omitted by Finance Ordinance, 2002.

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3
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5

Substituted for notice by Finance Ordinance, 2002.

Words certificate, omitted by Finance Act, 2013.