Property in name of Dependent / Non-filer / Tax / How to Declare?

[sohail_awan]

Greetings everyone,

I’d be grateful for help from the property and tax experts on this forum who are experienced in buying and selling property.

I wish to purchase property in the name of my wife. However, she is a non-filer as she does not have any income or owns any assets. To save on the advance tax, should she become a filer before we purchase the property?

Secondly, if she becomes a filer, then her first tax return will show negligible (existing) assets in the wealth statement. But, next year’s return will show the property in the wealth statement. How to show this properly in the tax return, since she has no taxable income? It cannot be reconciled?

[yousafnoor (Abdul Qayyum)]

Dear Sean
Best bet is to hire a tax lawyer at Max Rs 5,000 per year fee and he will do everything for you…
FBR changing rules all the time & it is big headache to do your own.
But tell the lawyer everything true and he will sort out all for you.
I used to do my own & on FBR machine random draw, my name was picked up.
That was big headache to deal with FBR. Now my lawyer does all & I pay him only Rs 5,000 per year fee.

[zabak2014 (mohammed zabak)]

Do you have recommendations who to use , I also need a good tax guy qayum sb

[sohail_awan]

Thank you Qayyum sb, indeed, you are right. It is best to hire a professional to handle these matters.

I asked this question outside the forum as well, and was advised the following by a tax expert (sharing for the benefit of general audience):

1. Yes, my wife should file her return before purchase of property so that we can save on the advance tax. In order to become part of the Active Taxpayers List (ATL), she would need to file her return before 31-Mar-22 and purchase property after this date. This is because the ATL is updated every year on 31-Mar (for example, those filing their first-time returns for TY21 will be included in ATL 31-Mar-22 onwards). Since deadline has already lapsed for filing TY21 return, Rs. 1000 amount will also need to be paid alongside the first-time filing.
2. To show the purchase correctly in her next tax return, she will need to declare it as a gift. Simultaneously, my own tax return should also show the outflow (decrease) in asset as a gift. For this purpose, my wife and I should also make a formal gift deed on stamp paper, in case we are selected for audit.

[yousafnoor (Abdul Qayyum)]

Dear Friends
I have best experience with this office regarding tax related all proceeding:
Mr Usman
Contacts:
0336 5389841
0330 6760509
Not only best persong in tax returns but also making a company for business…
For tax returns of all your resources, His fee is Rs 5,000 per year.
FBR did not call me after I selected this office.

[syedwajahat17 (Wajahat Naqvi)]

This is right approach. one thing I would like to mention is that once you pay the late filing fee i.e. 1000 your name appears in ATL within next week.
Another thing, declare as much assets as possible in your first time filing.

[yousafnoor (Abdul Qayyum)]

I strongly second Wajahat sb suggestion. Declare first time more than what you actually have & this will help you a lot all along in future returns.
Otherwise it becomes a very difficult task when you sell something or buy something.
Capital gain & all other stuff will murder if one has declared less than what was actual.

[sohail_awan]

Thank you everyone for your most valuable and useful input.