For Kotli residents, the FBR return covers income and assets connected with Pakistan proper. This page explains what goes into it.
A Return Built Around Pakistan-Proper Income
The FBR return of a Kotli resident usually has fewer income lines than people expect. Typical entries are a salary from an employer in Rawalpindi or Islamabad, rent from a flat in Pakistan proper, profit on a savings account held with a bank branch outside AJK, and occasionally contract income from a Pakistani company. Profit from a family shop in Kotli or a salary from the AJK government is reported under AJK's system instead.
Why the Wealth Statement Still Lists Everything
Even though AJK income stays outside the FBR return, the FBR wealth statement is a statement of all assets. The house in Kotli, land in the villages along the Poonch, gold and bank balances in AJK branches all appear. Without them, the year-to-year change in wealth cannot be explained.
Money from Birmingham and Bradford
Transfers from relatives in Britain are receipts, not income. Each transfer should arrive through a bank, and the return notes who sent it and what it was for, such as building a house or buying land.
Selling Property in Pakistan Proper
When a Kotli family sells a plot in Rawalpindi, the return shows the sale price, the original cost, the gain and the advance tax deducted at transfer. How the gain is taxed depends on when the plot was bought.
Hydropower Project Workers
Engineers and staff employed by companies building projects on the Poonch who are paid from Pakistan proper copy their salary certificate into the FBR return.
Consistency Between Two Systems
Figures given to AJK's tax office and to FBR should agree, because either may ask about assets disclosed to the other.
Also see tax consultant in Kotli and NTN registration in Kotli.
Frequently Asked Questions
Do I list my Kotli house in my FBR wealth statement?
Yes, the wealth statement covers all assets.
Is UK money for my house income?
No, it is a receipt.
Is AJK shop income in my FBR return?
It is dealt with under AJK's system, though the asset appears in the wealth statement.