What would be the value of gold need to be furnished in wealth statement filed under section 116 of the income tax ordinance 2001?
While submitting the income tax return for the first time, the purchase value of gold with actual weight, needs to be furnished in the assets column. For next coming years, gold value remains same, if there is no further purchase of gold. If more gold is purchased in coming years, then the amount will be added with previous amount.
Gold’s value in 2017 to be furnish in return = Rs. 300,000
Gold’s value in 2018 to be furnish in return = Rs. 300,000
Gold’s value in 2019 to be furnish in return = Rs. 500,000 (Gold worth of Rs. 200,000 purchase during the year.
If gold is sold during the year, the amount of gold value is shown to be decreased whereas, the amount in bank or cash balance is to be shown as increased from the same amount, which will reconcile the double effect in the wealth statement.
Note: For FBR audit one needs to have the purchase slips of gold to avoid further complications. If the slips are not available, then the discretion of the decision lies with the said commissioner to decide the case as per law.
Further, as defined in section 75A of the income tax ordinance, if the purchase value does not exceed Rs. 1,000,000 (1 million), then taxpayer does not require to purchase any assets through banking channel.