Returns and Assessments Chapter- 17
Solution:
(a) Widow is not required to file return of income solely by the reason of owning immovable
property.
(b) As the orphan is earning salary income more than the maximum non-taxable limit therefore he
is required to file the return of income.
(c) As the disabled person is earning income from property more than Rs.150,000 therefore he is
required to file the return of income.
(d) A non-resident person is not required to file return of income solely by the reason of owning
immovable property.- Commissioner Inland Revenue power to require wealth statement [Section 116(1)]
The CIR may require a wealth statement by notice in writing from any person being an individual on
the compliance date specified in notice and on such form and duly verified by stating therein
particular's as on the date or dates stated in the notice of:- the person's total assets and liabilities; the total assets and liabilities of the person's all the dependents; any assets transferred by the person to any other person during the period or periods and the
consideration for the transfer; Detail of total expenditures incurred by the person and all the dependents during the period or
periods; and the wealth reconciliation statement,4 .1 Wealth statement [Section 116]
Every resident individual taxpayer (including member of an AOP) liable to file a return of income for
any tax year for the tax year shall furnish a wealth statement and wealth reconciliation statement for
that year along-with such return. [Section 116(2)]Where a person after filing of wealth statement discovers any omission or wrong statement therein
may furnish a revised wealth statement under intimation to the Commissioner in the prescribed form
and manner, along with the revised wealth reconciliation and the reasons for filing revised wealth
statement, at any time before the receipt of notice under sub-section (9) of section 122, for the tax
year to which it relates.Provided that where the Commissioner is of the opinion that the revision under this sub-
section is nor for the purpose of correcting a bona fide omission or wrong statement, he may
declare such revision as void through an order in writing after providing an opportunity of being
heard.Explanation.— For the removal of doubt it is clarified that wealth statement cannot be revised after
the expiry of five years from the due date of filing of return of income for that tax year. [Section
116(3)]Example: Mr. Arif having declared income of Rs. 400,000 is required by the Commissioner Inland
Revenue Inland Revenue to file wealth statement for tax year 20 23. Explain under the ITO, 2001
whether Mr. Arif is legally under obligation to file the wealth statement or not.Solution:
Now every individual is required to file the wealth statement along-with the income tax return however
the CIR is empowered to require any individual taxpayer to furnish a wealth statement. Hence, Mr.
Arif is under obligation to file the wealth statement on the demand of the Commissioner Inland
Revenue.4 .2 Furnishing of wealth statement [Rule 36]