Wealth Statement (Form 116) Preparation & Reconciliation
We prepare your wealth statement (Form 116) and reconcile it with your income, expenses and assets so that your declared wealth is consistent and defensible.
Overview
The wealth statement (Form 116) lists your assets, liabilities and personal expenses at the end of the tax year. The wealth reconciliation statement then explains how your net wealth changed from the start of the year to the end, using your income, expenses, gifts, loans and the proceeds of anything you sold.
FBR looks at these statements alongside your return. If wealth has grown by more than your declared income can explain, the department can ask where the difference came from. A well-prepared reconciliation answers that question before it is asked.
We collect your asset, liability and income details, reconcile each movement against a documented source of funds, and file the wealth statement with your return. We also help with foreign income and assets, and with revising earlier statements.
Who this is for
- Individuals and AOP members who must file a wealth statement with their return
- Property buyers and sellers, investors and business owners
- Taxpayers whose assets increased sharply during the year
- Persons with foreign assets or income that must be reported
- Taxpayers who received a query on their wealth reconciliation
What we handle
- Preparation of the wealth statement and wealth reconciliation statement
- Mapping each increase in assets to a documented source of funds
- Foreign income and assets reporting
- Correction or revision of earlier wealth statements
- Responding to FBR queries on assets and sources of funds
Why professional help makes a difference
Every increase has a source
We map each increase in assets to income, savings, gifts, loans or sale proceeds, and identify any gap while there is still time to document it.
Opening and closing figures agree
Your closing wealth this year is your opening wealth next year. We make sure the numbers carry forward without unexplained jumps.
Assets are reported correctly
Property, vehicles, investments, bank balances, jewellery and business interests are each reported as the law requires.
Foreign assets are not missed
Taxpayers with overseas accounts or property have extra reporting to consider. We identify what applies to you.
How it works
- Collect asset and income detailsYou share a list of assets, liabilities, income and expenses for the year, with supporting documents.
- ReconcileWe reconcile opening and closing wealth against income, expenses, gifts, loans and sale proceeds.
- Resolve gapsIf any increase is not yet explained, we identify the missing documents with you before filing.
- File and keep the workingWe file the wealth statement with your return and give you the reconciliation working for your records.
Documents we typically ask for
- Opening wealth statement (last year)
- Property, vehicle and investment documents and valuations
- Bank statements and loan statements
- Gift, inheritance or sale documents supporting funds
- Income and expense details for the year
- Foreign asset and income details, if any
The exact list depends on your case. We will confirm it after a short discussion.
Common mistakes we help you avoid
- Leaving out assets held in the names of family members that are in fact yours to declare.
- Not recording cash purchases or private loans with any supporting evidence.
- Opening balances that do not match last year’s closing balances.
- Reporting property or investments at figures that cannot be supported by documents.
- Forgetting foreign bank accounts, shares or property.
Frequently asked questions
What is Form 116?
Form 116 is the wealth statement that certain taxpayers file with their income tax return. It lists assets, liabilities and personal expenses at the end of the tax year, with the corresponding figures at the start of the year.
What is a wealth reconciliation statement?
It explains how your net wealth moved during the year. Opening net wealth plus income, gifts, loans and other receipts, less expenses and tax, should account for closing net wealth. Any difference needs an explanation.
Who has to file a wealth statement?
The law requires a wealth statement from certain taxpayers who file a return. Whether it applies to you depends on your category and circumstances, so we confirm this when we review your situation.
My assets grew faster than my income. What should I do?
Collect the documents that show where the money came from: bank transfers, sale agreements, gift and loan papers, inheritance records. We reconcile the movement and tell you if anything is still unexplained, before you file.
How are gifts from family treated?
Gifts need to be supported by documents, usually a bank transfer and a written confirmation from the giver. We advise on exactly what is needed for your case.
Do I need to report foreign assets?
Foreign income and assets may have to be reported, in the wealth statement and in a separate statement for certain taxpayers. We advise on what applies to residents and overseas Pakistanis who hold accounts or property abroad.
Can an earlier wealth statement be corrected?
The law allows revisions in certain circumstances and within certain limits. We review the earlier statement and advise whether and how it can be corrected.
What if FBR has questioned my wealth reconciliation?
Send us the notice. We will review it, prepare the reconciliation and supporting documents, and reply on your behalf. See our FBR notice and audit service for how we handle this.
Related guides
Our other services
Income Tax Return Filing
Annual return preparation and filing on FBR IRIS, NTN registration and Active Taxpayer List (ATL) support.
Learn more →FBR Notices, Audit & Appeals
Notice replies, audit representation, appeals and dispute resolution before the tax authorities.
Learn more →Audit & Assurance
Audit preparation and support, internal audit, compliance reviews and assurance on financial information.
Learn more →Start with a conversation
Tell us what you need. We will explain the process, the documents required and the next steps.