Islamabad: The Federal Board of Revenue (FBR) has clarified that taxpayers can declare the market value of their movable and immovable assets at their own discretion without the need to submit any formal valuation report or document. However, this facility will not be available for High Net Worth Individuals (HNWI) who remain subject to strict reporting requirements under the law.

The clarification was issued after several claims regarding alleged amendments to income tax return form circulated on social media. FBR emphasized that no SRO has been issued and the change in the system is purely technical.

Federal Board of Revenue (FBR)

Key Points

  • Taxpayers can declare asset market value at their own discretion.
  • The relaxation does not apply to High Net Worth Individuals who must comply with strict reporting under Section 7E.
  • FBR has so far received 2.7 million tax returns.
  • Many taxpayers had previously entered asset values as “zero” which raised concerns.
  • After the system update, entering zero will no longer be allowed.
  • Returns already filed do not need to be resubmitted.
  • Declared asset values will not affect tax calculation or audit.
  • Deadline: September 30, 2025 remains unchanged.

FBR Chairman’s Statement

FBR Chairman Rashid Mahmood Langrial said:

“This is merely a technical measure to prevent misreporting or misuse of the system. No amendments have been made to the law.”

Rules for Declaring Asset Values

CategoryConditionImpact
Regular taxpayersMay declare market value at discretionNo formal valuation required
High Net Worth IndividualsStrict reporting under Section 7EDocumentary evidence mandatory
Declaring asset value “zero”No longer possibleSystem will reject entry
Already filed returnsNo need to resubmitNo impact
Asset value effectNo impact on tax amount or auditFor informational purposes only

Reaction from Bar Associations

The Pakistan Tax Bar Association and Karachi Tax Bar Association have written to Finance Minister Muhammad Aurangzeb demanding that:

  • An inquiry be conducted into the technical issues faced in return filing.
  • The filing deadline be extended to provide relief to taxpayers.
Federal Board of Revenue (FBR)

Background

  • The income tax return form was issued on July 7, 2025.
  • On page 66 of the form, declaring the market value of assets was made mandatory.
  • According to FBR, this data is only informational and not part of tax calculation.

With this clarification, it is now clear that regular taxpayers will not be burdened with formal valuation requirements. However, they are expected to declare reasonable market values for transparency. Meanwhile, after repeated demands from tax bar associations for deadline extension, all eyes are now on the finance minister’s upcoming decision.