FILING OF WEALTH STATEMENT ALONG WITH RECOCILIATION STATEMENT

SECTION 115 (4B) of the Income Tax Ordinance 2001

Section115(4B)Every person (other than a company) filing statement under sub-section(4), of section 115,falling under final tax regime (FTR) and has paid tax amounting to twenty thousand Rupees or more for the tax year, shall file a wealth statement along with reconciliation of wealth statement."

The above conditions for the filing of wealth statement along with wealth reconciliation statement which is effective from the tax year 2009 is practically not possible especially in cases where tax payers are falling under final tax régime, due to the following reasons:

a)According to income tax ordinance these tax payers are not required to keep any books of accounts like other tax payers therefore, it is not possible to prepare any reconciliation statement.

b)Most of the tax payers are of the view that this sub section is added only to keep honest tax payer under endless pressure who had already discharged his final tax liability.

c)Most of the tax payers falling under this category are of the view that they are doing the business with in a very nominal margin and to meet the above requirement they to spent more and this will surely increase their cost of doing business and at the end the government will not receive tax from these tax payers what they are receiving under final tax regime.