Taxpayers can declare assets ‘without formal valuation’

The Federal Board of Revenue (FBR) has said that taxpayers are free to declare the market value of their movable and immovable assets at their own discretion, in tax returns for the year 2025, without requiring formal valuation or supporting documents. But this flexibility does not apply to high-net-worth individuals, who remain subject to stricter reporting requirements under Section 7E of the Income Tax Ordinance 2001. The clarification came in the wake of misinformation, circulating on social media, regarding amendments to the income tax return form. The FBR has so far received 2.7 million tax returns. Tax bar associations have meanwhile requested an extension of the filing deadline. According to an official statement, the income tax return form for 2025 — released on July 7 — exp­licitly requires taxpayers to declare the market value of their assets, as outlined on page 66 of the form.