Understanding “Household Effects” in FBR Income Tax Return

Household effect is an important head in the FBR Income Tax Return form. When filing your income tax return in Pakistan through the FBR’s IRIS portal, you may find a section labeled “Household Effects” under the Assets and Liabilities tab. Many people are confused about what this means and whether they need to declare anything under this heading. Also, what type of things come under this head? In this article, I will explain to you everything about the Household effect in the FBR income tax return.

What are Household Effects in Income Tax Returns?

Household Effects refer to personal and domestic items that you use in your home. These are not investments or income-generating assets. They still form a part of your net worth and must be declared when you file your wealth statement (also called the statement of assets and liabilities). There are a few examples of Household Effects here:

Examples of Household Effects

The following table shows common items considered as household effects:

Category	Examples
Furniture	Beds, sofas, dining tables, wardrobes, dressing tables
Home Appliances	Fridge, washing machine, microwave, TV, air conditioner
Electronics	Laptops, mobile phones, computers, tablets
Kitchen Items	Crockery, cutlery, cooking equipment
Decoration Items	Rugs, carpets, paintings, wall clocks, vases
Misc. Personal Items	Iron, water dispenser, fans, heaters

These are non-income-generating items you use for personal or family life at home.

Where to Declare Household Effects in the FBR IRIS Portal?

You can declare your Household Effects in the Wealth Statement section:

• Go to: Declaration > Wealth Statement > Assets
• Select: Household Effects
• Enter the total value of all such items as one figure.

Note: You do not need to list each item separately. Just a lump sum value is enough.

How to Estimate the Value of Household Effects?

There is no fixed formula by the FBR, but you should provide a reasonable and honest estimate. You can use the following method. See an estimation example below:

Item Category	Estimated Value (PKR)
Furniture	250,000
Electronics & Gadgets	150,000
Home Appliances	200,000
Other Items	100,000
Total	700,000

You can declare “Household Effects” as Rs. 700,000 in your wealth statement.

Pro Tips:

• You don’t need exact market prices.
• Use the cost at the time of purchase, or the fair current value.
• Don’t undervalue items too much (it may trigger an audit).
• If newly married or recently shifted, your household effects may be higher.

Do I Need to Provide Proof of Household Effects?

Usually No – unless:

• You are under audit, OR
• Your declared wealth does not match your declared income.

However, it’s a good idea to keep basic records like:

• Receipts for expensive electronics.
• Delivery slips for furniture or home appliances.
• Photos or a list of items (for personal record).

Do Household Effects Increase Every Year?

Yes, in most cases. As you buy more items, the value should increase a little each year. Here is an example growth pattern:

Year	Declared Value (PKR)	Reason for Change
2022	300,000	Basic setup
2023	400,000	Bought new LED TV and washing machine
2024	550,000	Bought a new LED TV and washing machine

Don’t show the same value every year unless there is a valid reason.

What If I Don’t Declare Household Effects?

While it’s a non-income-generating asset, failure to declare:

• May raise red flags in wealth reconciliation.
• Can cause issues in the audit or during the ATL/NTN review.
• Weakens your justification for wealth accumulation.

Common Questions

Do income tax filers or students need to declare household effects?
Yes, if you own items personally (like a laptop, fridge, etc.), you should declare a small amount (e.g., Rs. 100,000).

What if everything I use is gifted by parents or siblings?
You can still declare the value under “Household Effects” – the source can be listed as “gift from family” in the wealth reconciliation.

Should I declare used or old items?
Yes. You don’t need to declare full price—just fair value after depreciation.

Conclusion

The “Household Effects” section in FBR’s income tax return is not something to fear. It’s there to give a complete picture of your lifestyle and wealth. Declare a reasonable estimate every year and update it as your possessions grow. By staying honest and consistent, you will stay compliant. You can avoid penalties, and in this way, you can strengthen your tax profile.

So I hope you have completely understood the concept of household effect in the FBR Income Tax Return. If you have any questions, ask them in the comment section below.

If you wish you learn more about filing of income tax return, you can enroll in our Income Tax Return Master Course. You can also learn about the property tax rates in Pakistan.