111Act now
Unexplained income or assets
Section 111 lets the officer add to your income any asset, expenditure or bank credit whose source you cannot explain, and tax it in the year discovered.
Income Tax Ordinance 2001Time you have
As stated on the accompanying notice, usually under section 122(9).
If you ignore it
The full amount is added to your income and taxed at the top rate, with penalty and surcharge on top.
Why you got it
Why this arrived
- A property or vehicle was purchased that your declared income does not support
- Bank deposits exceed declared income
- Foreign remittance or gift claimed without documentation
What to do
What to do now
- Document the source of every questioned amount: sale proceeds, loan, inheritance, remittance
- Produce the banking channel evidence, remittances must come through proper channels
- Reconcile the wealth statement year on year so the increase is explained
Documents
What to gather
- Bank statements showing the credits
- Sale deeds, gift deeds, inheritance documents
- Remittance advice and proceeds realisation certificates
- Loan agreements with the lender's tax details
Send us the notice before the deadline
Photograph every page and send it on WhatsApp. We read it the same day and tell you the real exposure, not the worst case. Our principal is a licensed Income Tax Practitioner and can be authorised on your IRIS account to reply and appear for you.
0335 1358871 · Monday to Saturday, 11:00 am to 7:00 pm (PKT)