Income tax return: Nine lifestyle details required to be disclosed

When submitting an annual income tax return, you are required to provide certain information regarding your lifestyle. For this purpose, the National Board of Revenue (NBR) seeks details in nine specific categories.

Taxpayers must submit details of lifestyle-related expenses in Return Form IT-11G (2023). In this statement, expenses must be itemised under relevant heads and if any portion of such expenditure is borne by another family member, this should be mentioned in the remarks column.

Nine categories of expenses must be disclosed in the income tax return. These are as follows:

1. Personal and family maintenance expenses

This includes information on household expenditure, particularly day-to-day grocery and subsistence costs. The total annual household expenses must be reported.

2. Housing expenditure

Details of house rent must be furnished, including the total rent paid annually and expenses incurred for maintenance of the residence. The purpose is to assess whether your rental expenses are consistent with your income.

3. Personal Vehicles

If you own a private car, motorcycle or any other type of vehicle, you must declare the associated expenditure such as fuel, maintenance and various fees. If you employ a driver, details of salary and allowances must also be provided. Tax officials use this information to compare your lifestyle with your reported income.

4. Utility and Service charges

Monthly bills for electricity, gas, water, telephone, mobile and internet services must be recorded, as these will need to be reflected in your return at year-end.

5. Educational expenses

Expenses relating to the education of family members must be reported. This includes tuition fees for schools, colleges and coaching centres. If children are enrolled in expensive English-medium institutions, the relevant costs must also be disclosed.

6. Domestic and overseas travel and holidays

Expenditure incurred on travel, both within the country and abroad, must be declared. This includes payments made in cash and by credit card, as well as expenses for accommodation at resorts or hotels.

7. Festival and special expenditure

During festivals such as Eid, additional income in the form of bonuses may result in increased spending on clothing, gifts and provisions for family and relatives. Cash gifts and other related expenses must also be reported under this head.

8. Tax deducted or collected at source

You must keep records of all tax deducted at source throughout the year, such as on savings certificate profits and other payments. Information on taxes and surcharges paid on the basis of the previous year’s return must also be provided.

9. Interest on loans

If loans are obtained from banks, financial institutions or other sources, the interest paid thereon during the year must be disclosed in the return.