Receiving an Income Tax Notice from the Federal Board of Revenue (FBR) can be stressful and intimidating — whether you’re a salaried employee, small business owner, freelancer, AOP, or a corporate taxpayer.
Most taxpayers panic, ignore notices, or try to respond without understanding legal implications. This usually creates bigger problems, including penalties, audits, and legal complications.
As one of the Best Tax Consultants in Pakistan, Tanweer Habib & Co. deals with hundreds of FBR notices every year. This guide explains exactly what to do — step by step – so you remain fully compliant and protected.
1. Don’t Panic – Understand the Nature of the Notice
An FBR notice may be issued under different sections of the Income Tax Ordinance, 2001, including:
Common Sections:
Section 114(4) – Filing of return not submitted
Section 111 – Unexplained income, assets, or bank deposits
Section 122(5A) – Amendment of assessment
Section 177 – Audit selection
Section 182 – Penalties for non-compliance
Section 205 – Default surcharge
Section 214C – Audit under risk-based system
Section 140 – Recovery notice / attachment
Each notice has a different consequence, so identifying the correct section is crucial.
2. Never Ignore an FBR Notice
Ignoring or delaying a response leads to:
Penalties
Audit selection
Estimated assessment
Bank account freezing
Salary attachment
Business disruption
Legal proceedings
FBR takes non-response very seriously.
3. Carefully Read What FBR Is Asking
Before responding, identify:
What exactly FBR wants?
What documents are needed?
What is your deadline?
What transactions are under question?
What tax year is involved?
Many notices revolve around:
Bank deposits
Withholding tax mismatch
Non-filing
Property purchases
Vehicle registration
High-income indicators
Business income mismatches
4. Gather All Relevant Documents
Collect:
Bank statements
Salary slips
Rental agreements
Business ledgers
Sales tax data
Property purchase documents
Vehicle registration papers
Withholding certificates
Previous returns
Utility bills or business proof
This will help prepare a proper reply.
5. Consult a Professional Tax Consultant Immediately
Majority of taxpayers make deadly mistakes by replying on their own.
Wrong replies often lead to:
Audit selection
Additional tax liability
Higher penalties
Reassessment under Section 122
Legal proceedings
As a Top Tax Consultant in Karachi, Tanweer Habib & Co. provides:
Full analysis of your notice
Legal drafting of reply
Document examination
Representation before FBR
Protection against penalties
Audit support
6. Prepare a Strong, Legally-Sound Reply
Your response must:
Address the specific section
Provide factual evidence
Use correct legal reasoning
Close all possible follow-up queries
Protect against audit triggers
Ensure no misinterpretation
A weak or incomplete reply invites further action.
7. Upload the Reply in IRIS on Time
Late replies = automatic penalties.
When uploading:
Attach documents in PDF
Use correct tag/section
Include index of documents
Keep acknowledgment
FBR tracks every upload.
8. Follow Up with FBR (If Needed)
Sometimes, FBR may:
Ask for additional documents
Schedule a hearing
Request explanation
Review your prior years
A consultant should represent you professionally.
9. Prevent Future Notices
Notices often result from:
Unreported bank deposits
Mismatch in withholding
Non-declaration of assets
Property gains not declared
Wrong tax calculations
Poor filing
Lack of documentation
Professional tax planning helps avoid future issues.
Receiving an FBR tax notice is not the end of the world — but it must be handled correctly. With the right guidance, professional support, and timely action, you can protect your financial standing and avoid penalties.
As one of the best tax consultants in Pakistan, Tanweer Habib & Co. specializes in:
FBR notice handling
Legal replies
Audit support
Income tax filing
Business compliance
Corporate advisory
If you’ve received an FBR notice — contact immediately.
Delay turns a simple issue into a legal problem.
FAQs – FBR Income Tax Notice (Pakistan)
1. What should I do first when I receive an FBR tax notice?
Read the notice carefully and identify the section under which it is issued.
2. Should I contact a tax consultant immediately?
Yes. A wrong or incomplete response can worsen your case.
3. Why does FBR issue notices?
For non-filing, mismatch, unexplained income, audit selection, or anomalies in your transactions.
4. What if I ignore the notice?
Ignoring leads to penalties, recovery, bank account freezing, or legal action.
5. How soon must I respond?
Most notices require a response within 7–15 days.
6. Which notices are most common?
Notices under Section 111, 114(4), 122(5A), 177, 182, and 214C.
7. Can a notice be issued even if I filed my return?
Yes, if there is discrepancy or missing information.
8. What documents are needed for reply?
Bank statements, salary slips, business ledgers, purchase proofs, etc.
9. Can FBR ask for bank details?
Yes. FBR can access your bank information under the law.
10. Can I respond to the notice myself?
It is not recommended. A professionally drafted reply saves you from penalties and audits.
11. How does IRIS submission work?
Reply is uploaded through IRIS under the specific section attached to the notice.
12. What if I uploaded the wrong documents?
This may lead to reassessment or audit. Consult a professional.
13. Does receiving a notice mean I am guilty?
No. Notices are often routine checks.
14. Can FBR re-open past years?
Yes, under certain legal provisions like Section 122.
15. Can a consultant represent me during hearings?
Yes, experienced consultants like Tanweer Habib & Co. attend hearings.
16. What if I missed declaring bank deposits?
You must justify the source or risk being taxed under Section 111.
17. Can I get penalty waived?
In some cases, yes — if strong justification exists.
18. Is audit mandatory after receiving notice?
Not always — depends on the nature of discrepancy.
19. Can freelancers and online sellers receive notices?
Yes — FBR monitors digital payments and bank transfers.
20. How can I avoid future notices?
By filing accurately, documenting everything, and consulting a professional firm regularly.
