Balance your Pakistan wealth statement before filing. Enter opening + closing net worth, every inflow (salary, business, gifts, remittance) and every outflow (personal expenses, taxes, gifts given, loan repayments) - the checker shows the unreconciled amount FBR will see.
Small enough to usually clear IRIS validation, but worth plugging. Most common cause is under-reported personal expenses. Add missing utilities, medical, or subscription line items to close the gap.
Every resident individual filing a Pakistan tax return also has to file a wealth statement under Section 116. On IRIS the Reconciliation of Net Assets section enforces one identity: closing net worth = opening net worth + all inflows − all outflows. If those two sides don't match, IRIS surfaces an "Unreconciled Amount" on line 703000 - and FBR's audit algorithm reads a large gap either way as a red flag.
A positive gap (wealth grew more than declared income minus outflows) reads as undeclared income - the exact case Section 111 addresses. A negative gap (wealth shrank more than outflows explain) reads as either overstated opening wealth or missing outflows. Neither is a good place to end up. The fix is almost always adding a legitimate line item (a gift, a utility bill, a family loan repayment) rather than doctoring your asset totals.
Inflows are every rupee that hit your net worth during the year: salary after tax, business profit after tax, dividend and bank profit received (net of WHT), rent received net of tax, PSEB proceeds (net of the 0.25% final tax), gifts received from relatives, inheritance, foreign remittance credited via bank, and capital gains realised. The "net" part matters - IRIS wants the amount that actually landed in your account after taxes were withheld.
Outflows are every rupee you spent or moved out of your net worth: household personal expenses (rent, utilities, groceries, medical, education, travel, insurance), income tax and withholding paid, Zakat, gifts given to others, loan repayments on principal (interest is a personal expense, principal is an outflow), and losses realised. The biggest single miss for salaried filers is personal expenses - most people underreport by 40-60%.
A salaried filer on PKR 3M net salary shows opening net worth of PKR 4.5M and closing of PKR 5.8M. Personal expenses declared: PKR 900k. Reconciliation math: 5.8M − 4.5M = 1.3M wealth change; 3M − 0.9M = 2.1M expected. Gap: 800k unexplained shortfall. On investigation, the filer forgot a PKR 500k car loan principal repayment and a PKR 300k medical event. Once added to outflows, the reconciliation balances to zero.