Tax term

Wealth statement

A declaration reconciling assets, liabilities, and changes in wealth where required.

The wealth statement reconciles what you owned at the start of the year, what you owned at the end, and the movements between those dates, so a return reporting salary alone is normally incomplete. Salaried readers meet it as a set of IRIS fields covering cash and bank deposits, vehicles, property, investments, liabilities and foreign holdings. Its logic becomes obvious in ordinary years. A bonus of Rs 500,000 received during 2025-26 explains a jump in deposits and perhaps a car, while a deposit that rises with no documented source invites questions later. The recurring mistakes are leaving liabilities out, so the movement looks unexplained, and reporting the year’s income twice as a source of the same increase. Keep year-end statements and a short note of every significant purchase, repayment or gift. Which taxpayers file, and how much detail the form demands, changes with the year, so confirm both with FBR.

Check the legal meaning in context and against the relevant tax year.