In the third step, Abdul Karim has provided information about the investment of Tk 200,000 to avail the tax rebate. But in assets and liabilities statements, he shall give total assets and liabilities as of 30 June 2022 from where he will discover how wealthy he is.

If a taxpayer has gross wealth exceeding Tk 40 lakh, or owns a motor car, or has investment in house property or apartment in the city corporation, he shall mandatorily include the assets and liabilities statement.

If the taxpayer does not meet any of the conditions, he may avoid this page. In that case, he shall only fill up the first page and the last page of the tax return form. So, it's easier and less time-consuming to prepare the tax return.

However, a taxpayer may include this statement voluntarily even though the above criteria are not met. But it will be wise to avoid it since this statement preparation is comparatively complex.

Karim has gross assets of more than Tk 40 lakh, so he will fill up this statement. There are three different pieces of information to provide in this page: assets, liabilities and lifestyle expenses.

First, he writes the date June 30, 2022, in the headline of the statement and below the line, he has to write his name and insert the TIN.

He has both agricultural and non-agricultural assets. He is paying a monthly instalment to a land developer for a five-katha plot in Purbachal. The plot has not been registered yet but he paid Tk 35.50 lakh that he mentioned in serial 01 providing the address and the size of the plot.

In serial 02, he mentioned the agricultural land 10 katha that he inherited. As he has not bought it, he gave the description without citing any value.

He has DPS and insurance which he writes under serial 03. He has deposited Tk 7.50 lakh in DPS which he gets from the DPS statement collected from the bank. He has paid Tk 6.25 lakh in insurance premiums which he writes in other investments.

He does not own motor vehicles, so he left this item blank. His wife has about 15 bhori gold which she received during the marriage. As the gold came from relatives, he only mentioned the quantity. No monetary value was given.

Karim has furniture and electronics items in his house and writes Tk 2.5 lakh and Tk 1.5 lakh, respectively, in serial 6 and 7.

He has collected the bank statement for the period of July 1, 2021, to June 30, 2022, to attach with this tax return form. He noticed that he has Tk 75,000 balance on June 30, 2022. In addition, on the day, he had about Tk 5,000 cash in hand. He writes both information in serial 8.

Since he has no other assets, he left blank the serial 9.

Now, he has added all the asset amounts and found that his total assets are worth Tk 54.05 lakh, well above the threshold of Tk 40 lakh that makes this statement mandatory for him.

He has a personal loan against his salary. Based on the loan statement, the balance was Tk 75,000 on June 30, 2022, which he writes in serial 10. There are no more liabilities. So, by deducting the total liabilities from the total assets, his net wealth comes to Tk 53.30 lakh. This is the wealth of Abdul Karim.

The author is lead consultant of Taxpert, an online tax training centre.