Hi,
I would Like To Clarify, what is process of declation of Assets for taxation pupose. Are these assests filed for Couples seprately or Jointly. Is there any Texation benefit If 1/2 of assessts are in name of wife and 1/2 in Name of Houband or it stays same??
Examples from other countries are also welcome but my question is basically Focused to Pakistan.
JJ replied on Sunday, February 26, 2012 08:22 AM
Habib Sahib, There is no wealth tax in Pakistan at the moment so it doesn't matter if assets are on person's name of jointly owned. You may need to file a wealth statement with income tax return only if you have income in Pakistan. If you don't have income in Pakistan, no need to file any return but CBR some times send notices for new assets purchased to some people when they purchase any new car or plot ect. and in that case you just need to prove the source of Income for the purchase of that asset.
Hope it is clear. |
Habib replied on Monday, February 27, 2012 03:00 AM
My question is specifically for the overseas Pakistani, who will be repatriating in few years with assessts of 6+ Cror. Most of assessts will be realestate. At arrival he will deinately start job and will have to pay and file income Tax and declare assests.
wealth Tax is not payable at this stage but is definitely coming in few years time and will be approximately one Percent.
Syaying abroad 6,7 Lac annual tax Look s easy to pay but styaing in Pakistan it will be difficult, So one will have no option but to liquidate the property. |
masifjamil replied on Monday, February 27, 2012 04:35 AM
Dear Mr. Habib, It doesn't matter in tax law if the property is owned in one name (husband) or two names but one has to prove his source of income. In case of foreign remittance from abroad, you must take care that the funds are transmitted in your Pak Rupee in Pakistan through Banking channel only. Its the only legitimate way to remit funds legally. Your income tax return would be filed in due course (September each year) and assets automatically would be declared at that time. Your spouse assets have to be merged in your wealth statement (part of income tax return). |
JJ replied on Monday, February 27, 2012 08:12 AM
Habib Sahib, There is no wealth tax I believe since last 9/10 years. At that time when wealth tax was implemented and paid, still assets purchased from foreign remittance were exempt for a number of years from wealth tax levy.
Don't worry and take your decision as it suits you for the distribution of assets in your name or your wife's name but as far as your question about wealth tax in concerned, it will not effect your decision. |
