Taxpayers can declare assets ‘without formal valuation’

ISLAMABAD: The Federal Board of Revenue (FBR) has said that taxpayers are free to declare the market value of their movable and immovable assets at their own discretion, in tax returns for the year 2025, without requiring formal valuation or supporting documents.

But this flexibility does not apply to high-net-worth individuals, who remain subject to stricter reporting requirements under Section 7E of the Income Tax Ordinance 2001. The clarification came in the wake of misinformation, circulating on social media, regarding amendments to the income tax return form.

The FBR has so far received 2.7 million tax returns. Tax bar associations have meanwhile requested an extension of the filing deadline.

According to an official statement, the income tax return form for 2025 — released on July 7 — exp­licitly requires taxpayers to declare the market value of their assets, as outlined on page 66 of the form.

FBR says high-net-worth individuals subject to more strict reporting requirements; those who have submitted returns do not need to revise

Recent scrutiny of filed returns, however, reve­aled a widespread anomaly: a significant number of taxpayers had entered zero in the asset valuation section, raising concerns over compliance and data accuracy.

To address this, the FBR has restricted the en­­try of zero in the asset valuation column. “All tax­­payers are now requi­red to declare the value of their assets,” said FBR Chairman Rashid Mah­mood Langrial, stressing that no amendment had been made to the law — only a technical adjustment in the system to prevent the misuse.

The FBR further exp­lained that asset valuation data — except disclosures by high-net-worth individuals — is not used to calculate tax liability. Therefore, any inaccuracies in this field will not result in tax notices.

Even so, taxpayers have been urged to declare values reasonably alig­n­­ed with prevailing market conditions, as a matter of transparency and good faith.

The statement added that individuals who have already filed their ret­u­rns will not be required to revise or refile them. Asset valuation entries are neither considered in tax assessments nor in the reconciliation of wealth statements.

It also confirmed that the IRIS system is fully operational, and taxpayers are urged to file their returns before the September 30 deadline.

The FBR also rejected misleading claims circulating on social media re­­garding amendments to the return form, clarifying that no SRO had been issued in this regard.

Meanwhile, the Pakis­tan Tax Bar Association and Karachi Tax Bar Association have written to Finance Minister Muhammad Aurangzeb, calling for an inquiry into the technical issues affecting return filings.

They have also formally requested an extension of the deadline to ensure taxpayers receive adequate support in submitting their returns.

Published in Brackly News, September 26th, 2025