FTO Summons FBR Over Illegal Wealth Statement Amendment in Tax Return Form 2025

FTO Summons FBR Over Illegal Wealth Statement Amendment in Tax Return Form 2025

The Federal Tax Ombudsman (FTO) has taken swift notice of an alleged unauthorized amendment by the Federal Board of Revenue (FBR) to the Wealth Statement section of the Income Tax Return Form for Tax Year 2025, which requires taxpayers to declare the market value of their moveable and immovable assets.

The action follows a complaint filed by prominent tax lawyer Waheed Shahzad Butt. In response, the FTO has issued notices to top FBR officials, including the Secretary of the Revenue Division, Member (Operations-IR), Member (Policy), Member (Legal), and Director General (IT & DT). These officials have been summoned for a hearing scheduled for Monday, September 29, 2025, and are required to present detailed comments on the matter.

Sources indicate there is a strong possibility that the FBR may withdraw the amendment in question following the FTO’s intervention.

FBR Denies Changes, Clarifies Asset Declaration Rules

Meanwhile, the FBR has issued a public clarification to counter widespread social media rumors, stating that no amendments or changes have been made to the Income Tax Return Form 2025 through any new SRO. The return form, published on the FBR website on July 7, 2025, does require taxpayers to declare the market value of their assets on page 66.

A review of submitted returns revealed that many taxpayers were entering “zero” for asset values. To address this, the FBR has now restricted such entries to ensure more accurate reporting.

The FBR further clarified that, except for high-net-worth individuals (who are already required to provide detailed valuations under Section 7E), the declaration of property market value is at the taxpayer’s discretion and does not require formal research or valuation. For most taxpayers, these values are not used in tax calculations, and no notices will be issued for errors in this section. However, taxpayers are expected to declare asset values as close to market rates as possible.

Additionally, the FBR confirmed that those who have already filed their returns will not be asked to revise or re-file, as the asset market value entries are not used for tax assessment or wealth statement reconciliation.