Wealth Statement Pakistan: How to Fill It in IRIS (2026)
How to fill the wealth statement in IRIS for tax year 2026: assets at cost, liabilities, personal expenses and a worked reconciliation that balances to zero.
Quick answer: To fill the wealth statement in IRIS, open the section 116 form linked to your income tax return, enter every asset you own at 30 June at cost, list liabilities, record personal expenses for the year, and complete the reconciliation of wealth. The goal is an unreconciled amount of zero: the growth in your net assets must equal your inflows minus outflows.
The wealth statement is the part of the Pakistani tax return that worries people most, because it asks for more than income. It wants a snapshot of everything you own and owe, plus an explanation of how that snapshot changed. Done right, it protects you: it documents the legitimate sources of your property, car and savings, and the invoices you issue through a tool like our free invoice generator become the evidence for your declared income. This guide explains how to fill the wealth statement in IRIS field by field, with a worked reconciliation. For the overall filing process, read our step-by-step guide to filing your income tax return in IRIS first.
This is general information based on the Income Tax Ordinance, 2001 and FBR's IRIS forms as of 2026, not tax advice. Forms and deadlines change each year.
What is a wealth statement and who must file it?
Section 116 of the Income Tax Ordinance, 2001 requires a statement of assets and liabilities, personal expenses and a reconciliation of wealth. In practice, resident individuals who file a return complete it in the same IRIS session as the return. It covers:
- Assets you own, and assets held by your spouse, minor children and dependants, unless they file their own wealth statements.
- Assets you hold in someone else's name.
- Liabilities such as loans and amounts owed.
- Personal and household expenses for the tax year.
- A reconciliation explaining the change in net assets since last year.
Filing a complete return and wealth statement is also how you stay on the Active Taxpayer List. See how to become a filer in Pakistan and how to check your ATL status.
Deadline for the tax year 2026 wealth statement
Tax year 2026 runs from 1 July 2025 to 30 June 2026. The wealth statement is due with the return. For individuals the normal deadline was 30 September 2026; FBR extended it to 15 October, and press reports say it was then extended to 31 October 2026. Check announcements on the FBR website and file early, because the IRIS portal slows down near deadlines.
Records to gather before you open IRIS
- Last year's wealth statement, because its closing figures are this year's opening position.
- Bank statements showing balances at 30 June 2026 for every account, including foreign and digital accounts.
- Purchase documents for property, vehicles, gold, shares and other assets bought or sold during the year.
- Loan statements and agreements for amounts you owe or are owed.
- Evidence of gifts or inheritance received, such as gift deeds and bank transfers.
- Utility bills, school fees, rent and other household costs for the expenses section.
- Withholding certificates and your income figures from the return.
Freelancers should also pull platform and wallet balances. Our guide to receiving payments from abroad covers the channels that create these balances.
How to fill the wealth statement in IRIS: step by step
- Log in to IRIS and open the declaration for the return of income for tax year 2026. Complete and save the income sections first so income figures flow into the reconciliation.
- Open the wealth statement (form 116) for the same tax year from the declaration menu or the link in the return.
- Enter personal expenses. Fill rent, rates and taxes, vehicle running, travel, electricity, water, gas, telephone, medical, education, functions, donations and other household costs. Enter any contribution by other family members to household expenses.
- Enter assets at 30 June. Use the asset categories (described below) and record each asset at cost, with a description such as plot number, vehicle registration or bank account number.
- Enter liabilities. Record loans, mortgages, car finance and other amounts outstanding at year end.
- Complete the reconciliation. IRIS brings forward last year's net assets and this year's income. Add other inflows such as gifts, inheritance, exempt income and gains on disposal, and outflows such as gifts given and losses.
- Check the unreconciled amount. Aim for zero. If it is not zero, go back and check each figure before submitting.
- Submit and save. Submit the wealth statement with the return, then download both acknowledgments and PDFs.
Wealth statement asset categories explained
The IRIS form groups assets into categories. The table shows what usually goes where.
| Category | What to include | Common mistake |
|---|---|---|
| Agricultural property | Farm land at purchase cost plus transfer costs | Using current market value |
| Commercial or industrial property | Shops, offices, plots held for business | Leaving out plots paid in instalments |
| Residential property | House, flat, residential plot, including amounts paid so far | Ignoring a house in a spouse's name |
| Assets in business capital | Capital invested in your sole proprietorship or share in an AOP | Listing business equipment twice |
| Investments | Shares, mutual funds, savings certificates, deposits | Using market price instead of cost |
| Debts and advances given | Loans you gave and advances paid for property or vehicles | Forgetting a booking advance |
| Motor vehicles | Cars and bikes at cost, with registration number | Deducting depreciation |
| Precious possessions | Gold and jewellery at cost or declared value | Leaving out jewellery received as a gift |
| Household effects and personal items | Furniture, electronics and similar items | Never updating the figure |
| Cash and bank balances | Cash in hand, local and foreign bank balances, wallets | Forgetting Payoneer or platform balances |
Business owners should keep a list of assets used in the business; our sibling guide to a fixed asset register shows a simple format. If you run a sole proprietorship, the capital invested sits in "assets in business capital" rather than being listed asset by asset. See sole proprietorship registration in Pakistan for how that structure works.
Foreign assets and freelancer balances
Assets outside Pakistan are part of your wealth. That includes foreign bank accounts, property abroad, foreign shares and balances held with payment services or freelance platforms on 30 June. Convert each balance into rupees at a consistent, documented exchange rate and keep a screenshot or statement showing the balance on that date. IRIS has fields for foreign assets, and the income that built them should already appear in your return, often as export proceeds taxed under a final regime. Declaring foreign balances properly also makes future transfers into Pakistan easier to explain.
Joint and family assets
Property owned jointly should be split by each owner's share. If you and your brother each paid half for a plot costing Rs 2,000,000, you declare Rs 1,000,000. Assets of a non-filing spouse and minor children belong in your statement, while a spouse who files a return declares their own assets. Jewellery given to a bride at marriage is a frequent grey area; declare it consistently in one person's statement, supported by a note of its source, rather than leaving it out entirely.
Buying or selling an asset during the year
When you sell an asset, remove it from the list at its original cost and record the sale proceeds. Any gain above cost is an inflow in the reconciliation (and may be taxable); a loss is an outflow. When you buy an asset, add it at total cost and make sure the money that paid for it is visible: lower bank balances, a new loan or income earned during the year. For example, if you sell a car that cost Rs 900,000 for Rs 1,000,000, the car leaves your assets at Rs 900,000, the Rs 1,000,000 cash appears in your bank balance, and the Rs 100,000 gain is recorded as an inflow, so the reconciliation still balances.
Personal expenses: be realistic
IRIS breaks personal expenses into lines such as rent, rates and taxes, vehicle running and maintenance, travel, electricity, water, gas, telephone, medical, educational, club, functions and gatherings, donations and other personal or household expenses. Fill each line from evidence where you can, and use the "contribution by family members" line when a working spouse, parent or sibling pays part of the household bills. Tax paid or deducted is usually treated separately from these living costs in the reconciliation, so check that you do not count it twice.
Personal expenses are an outflow in the reconciliation. Underestimating them makes your wealth look larger than your income can explain; overestimating them to balance the figures is just as risky, because FBR compares declared expenses with utility bills, school fees and travel data it can see. Use bank statements and bills to build a realistic figure, and record contributions by other earning family members so you do not overstate your own spending. Our guide to tracking business expenses is written for business costs, but the same monthly habit makes personal expense totals easy at year end.
Worked example: reconciling wealth for tax year 2026
Usman is a freelance developer in Islamabad. His net assets at 30 June 2025, from last year's statement, were Rs 4,200,000. At 30 June 2026 he holds:
| Asset or liability at 30 June 2026 | Amount (Rs) |
|---|---|
| Residential flat (cost) | 3,000,000 |
| Car (cost) | 1,200,000 |
| Bank balances, including foreign currency account | 520,000 |
| Cash in hand | 80,000 |
| Household effects | 300,000 |
| Total assets | 5,100,000 |
| Less: car finance outstanding | (150,000) |
| Net assets at 30 June 2026 | 4,950,000 |
His net assets increased by Rs 4,950,000 minus Rs 4,200,000, which is Rs 750,000. The reconciliation must explain that increase:
| Reconciliation item | Amount (Rs) |
|---|---|
| Income declared in the return | 2,400,000 |
| Profit on bank deposits (final tax) | 60,000 |
| Gift received from father | 200,000 |
| Total inflows | 2,660,000 |
| Less: personal expenses | (1,700,000) |
| Less: tax paid and deducted | (180,000) |
| Less: gift given to sister | (30,000) |
| Total outflows | (1,910,000) |
| Net inflow (2,660,000 minus 1,910,000) | 750,000 |
| Increase in net assets | 750,000 |
| Unreconciled amount | 0 |
Because inflows minus outflows equal the increase in net assets exactly, the unreconciled amount is zero. If Usman had forgotten Rs 60,000 sitting in a platform wallet, net assets would be understated and IRIS would show a negative gap. Our guide to freelancer tax in Pakistan explains how his export income is taxed.
Fixing a wealth statement that does not reconcile
- Check opening figures. The opening net assets must match last year's closing figure.
- Look for missing assets. Bank accounts, wallets, advances for property and jewellery are the usual omissions.
- Check asset values. Assets must stay at cost; an accidental revaluation creates a false increase.
- Add non-taxable inflows. Gifts, inheritance, loans received and exempt income all explain wealth growth.
- Record disposals. When you sell an asset, remove it at cost and record any gain or loss.
- Do not plug the gap with expenses. Inventing expenses to force a zero hides the real error.
If you find an error after filing, a revised wealth statement can be filed under section 116, provided you have not yet received a notice for that year. Pay any additional tax through a PSID; see our PSID payment guide.
Penalties and risks
Most wealth statement questions from FBR start with data the department already holds: property registrations, vehicle purchases, foreign travel, large bank deposits, utility bills and school fees. If those transactions are larger than your declared income and expenses can explain, a notice is likely. The best defence is a statement that already shows where the money came from, with gift deeds, loan agreements and sale documents kept in one folder for each tax year.
Failing to file a wealth statement where required, or filing an inaccurate one, can lead to penalties under section 182 of the Ordinance and to FBR notices asking you to explain unexplained assets or expenditure. Unexplained wealth can be added to income and taxed. Being off the Active Taxpayer List also means higher withholding on banking, property and vehicle transactions. Accurate records are the best protection: keep bills, bank statements, invoices and gift documents for at least the period FBR can reopen a year.
Keep records that make next year easy
The wealth statement is easiest when your income is documented as it happens. Invoice every client in a consistent format, keep copies of payments received, and you will have the figures you need for the return and reconciliation. Freelancers and small businesses can create clean, numbered invoices with our Pakistan invoice generator, or start from the general free invoice generator, and keep a PDF of every invoice for the year. Check your tax slabs for 2026-27 so the next wealth statement starts on a solid footing.
Frequently asked questions
What is a wealth statement in Pakistan?
A wealth statement is a declaration under section 116 of the Income Tax Ordinance, 2001 listing your assets and liabilities at the end of the tax year, your personal expenses and a reconciliation that explains how your net wealth changed since last year. It is filed in IRIS alongside the income tax return. FBR uses it to check that the growth in your assets is supported by declared income, gifts, loans or other legitimate sources.
Who has to file a wealth statement?
Resident individuals who file an income tax return are generally required to file a wealth statement with it, and IRIS links the two forms. Companies and AOPs do not file one, although members of an AOP declare their own wealth personally. Even people filing only to join the Active Taxpayer List should complete it carefully, because each year's closing figures become next year's opening position.
What is the last date to file the wealth statement for tax year 2026?
The wealth statement follows the income tax return deadline. For tax year 2026 the normal date for individuals was 30 September 2026, which FBR extended to 15 October and then, according to press reports, to 31 October 2026. Check FBR's latest press release before relying on any further extension. A revised wealth statement can be filed later under the conditions in section 116, before a notice is received.
Should assets be shown at cost or market value?
At cost. The wealth statement records assets at the price you paid plus costs of acquisition such as registration and transfer charges, not their current market value. A house bought for Rs 3 million in 2015 stays at Rs 3 million even if it would sell for much more today. Showing market value creates an unexplained increase in wealth and is a common cause of reconciliation errors.
What does the unreconciled amount mean in IRIS?
It is the gap between the increase in your net assets and what your inflows minus outflows can explain. If your net assets rose by Rs 750,000 but income, gifts and other inflows less expenses only explain Rs 700,000, IRIS shows Rs 50,000 unreconciled. FBR expects it to be zero or very close. A large positive gap suggests undeclared income; fix it by checking figures, not by inventing expenses.
Do I include my spouse's assets in my wealth statement?
Section 116 requires you to declare assets held by your spouse, minor children and other dependants, and assets you hold in another person's name, unless those persons file their own wealth statements. If your spouse is a filer with her or his own return, their assets go in their statement. Do not declare the same asset twice, and show joint property according to each person's share.
Can I revise a wealth statement after filing?
Yes. Section 116 allows a revised wealth statement, with a revised reconciliation, to correct an omission or wrong statement, provided it is filed before you receive a notice for that tax year under the audit or amendment provisions. In IRIS you create a revised form for the same tax year. Keep evidence for every change, because FBR can ask why the original figures were different.
Do freelancers declare foreign bank balances and Payoneer funds?
Yes. Assets held outside Pakistan, including foreign bank accounts and balances held with payment services, are part of your wealth at 30 June and must be declared, converted to rupees. Freelancers often forget money waiting in a platform or wallet account. Declare it with other cash and bank balances, and make sure the income that created it appears in your return, usually as export proceeds.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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