Tax Book 2023

Returns and Assessments Chapter- 17

A verified wealth statement shall be in the form specified in Part IV of the Second Schedule to the

Income Tax Rules, 2002, accompanied by such documents, statements and certificates required

under the Ordinance / Rules along-with a wealth reconciliation statement.

4.3. Foreign income and assets statement [Section 116A]

(1) Every resident taxpayer being an individual having foreign income of not less than 10,000 United
States dollars or having foreign assets with a value of not less than 100,000 United States dollars
shall furnish a statement, hereinafter referred to as the foreign income and assets statement, in the
prescribed form and verified in the prescribed manner giving particulars of—
(a) the person’s total foreign assets and liabilities as on the last day of the tax year;
(b) any foreign assets transferred by the person to any other person during the tax year and the
consideration for the said transfer; and

(c) complete particulars of foreign income, the expenditure derived during the tax year and the

expenditure wholly and necessarily for the purposes of deriving the said income.

(2) The Commissioner may by a notice in writing require any person being an individual who, in the
opinion of the Commissioner on the basis of reasons to be recorded in writing, was required to furnish
a foreign income and assets statement under sub-section (1) but who has failed to do so to furnish
the foreign income and assets statement on the date specified in the notice.

5. Income tax requirements for discontinued business [Section 117]

Any person discontinuing a business shall give notice in writing to the CIR within 15 days of such

effect. [Section 117(1)]

The person discontinuing the business shall by himself or so required by CIR by notice in writing

furnish a return of income for the period started from the first day of the tax year in which business

is discontinued and ending on the date of discontinuance and this period shall be treated as a

separate tax year. [Section 117(2)]

Where no notice has been given by the taxpayer for discontinuance of business but the CIR has

reasonable grounds that a business has discontinued or is likely to discontinue, a notice may be

served to such person to furnish within specified time a return of income for such period that shall be

treated as a return of income for all purposes. [Section 117(3) (4)]

6. Method to furnish the return rule- 73 and [Section 118]

A return of income, a wealth statement or a foreign income and assets statement, if applicable shall

be furnished by almost all the persons on E. portal except where allowed to file by post or courier

service or delivery by hand. [Section 118(1)]

6 .1 Persons required to file return / statements electronically [Rule 73]

Following persons are required to file return / statements electronically.

Documents to be filed electronically

1 Companies and AOP’s Return of income and withholding tax

statements

2 A person registered under the Sales tax Act Return of income & withholding statements

3 An individual having taxable income for the

tax year Rs. 1,000,000 or more or receipts

exceeding Rs. 50 million.

Return of income, proof of tax deduction /

payment and wealth statement along with its

reconciliation.

4 Federal government departments Withholding tax statements

5 Non-resident ship owner or non-resident

aircraft owner or charterer thereof

Return of income and port clearance application

6 A non-corporate entity claiming refund Return of income

7 Any person claiming refund Application of refund