17/06/2026
π¨ FBR Warning: Received a Gift From a Friend?
Many people believe that every gift is tax-free. Unfortunately, that's not always true.
A recent ATIR decision highlights that gifts received from friends, business associates, or non-relatives may be questioned by FBR if proper evidence is not available.
π FBR may ask for:
β
Identity of the giver
β
Source of funds
β
Financial capacity
β
Banking records
β
Proof of transfer
β Simply saying "It was a gift from a friend" may not be enough.
If the source and supporting evidence cannot be established, the amount may be treated as unexplained income and become taxable.
π‘ Gifts from parents, spouse, children, siblings, and grandparents are generally easier to justify, provided proper documentation exists.
Remember: π Keep records π¦ Maintain a banking trail π Document every significant gift transaction
Tax compliance today can save you from notices, penalties, and disputes tomorrow.
π¨βπΌ Muhammad Aizaz ITP | Member KTBA
T.A Law & Associates Your Trusted Tax Partner
π 0304-2351986