The Federal Board of Revenue (FBR) in Pakistan has stepped up efforts to boost tax collection and ensure fair contribution from all taxpayers.
As part of this initiative, many individuals are receiving tax notices—often via email or SMS.
Receiving such a notice can initially be stressful, but there’s no need to panic. The process becomes much more manageable once you understand why these notices are sent and how to respond effectively.
This guide will help you understand the nature of FBR notices and how to address them confidently and calmly.
How the FBR Reaches Out to You—and Why It’s Important
To manage your tax affairs responsibly, it’s essential to understand how the FBR communicates. They use both traditional and digital methods, so stay alert for the following:
1. Postal Notices
Despite the rise of digital communication, the FBR continues to send official documents to your registered mailing address. It’s crucial to keep this address up to date. If you relocate, notify the FBR promptly to avoid missing important correspondence.
2. Email Alerts
The FBR uses your registered email address to send notifications and official documents. Make it a habit to check your inbox regularly—preferably daily or at least several times a week.
3. Text Messages (SMS)
For urgent updates, the FBR sends SMS alerts to your registered phone number. Ensuring this number is current helps you stay informed of time-sensitive matters.
4. IRIS Portal
The IRIS portal is your digital tax dashboard. It hosts all your tax returns, payment history, and official notices. Make it a practice to log in at least twice a month to monitor any new developments or pending actions.
Understanding the Various Tax Notices from the FBR
FBR sends different types of notices depending on the issue at hand. Here are the most common ones:
1. Monitoring of Taxes – Rule 44
Issued to withholding agents—those responsible for deducting and depositing taxes on behalf of others. The FBR typically requests compliance evidence, and a hearing may follow. Failure to comply could result in a tax demand under Section 137.
2. Audit Notices – Section 177
These signal that a tax audit has been initiated. You’ll be required to submit documents like ledgers, contracts, and tax certificates. Discrepancies could lead to a demand notice under Section 137.
3. Specific Inquiry Notices
These are triggered by particular transactions, such as the purchase of property or receipt of a gift. The FBR already has some details and wants further clarification or documentation.
4. Advance Tax Demands – Section 147
These notices require certain taxpayers—including companies and AOPs—to pay advance tax based on income or turnover projections.
5. Non-Filing Notices – Section 114
Sent to individuals or businesses that have failed to file their tax returns on time. Ignoring them may lead to penalties.
6. Incomplete Return Notice – Section 120(3)
Issued when a return lacks essential documents, such as signed financials. You’ll be given a deadline to correct the issue. Failure to do so may result in rejection and penalties under Section 182(1).
Smart Moves to Make Before You Answer an FBR Notice
1. Track the Dates and Keep Evidence
Note both the issue date and the date you received the notice. Retain proof—like a postal receipt, email timestamp, or SMS screenshot—as this could be useful if you need to justify delays.
2. Check the Deadline and Seek an Extension If Necessary
Confirm the response deadline. If you can’t respond in time, formally request an extension with a valid reason. Avoid rushing; errors can cost you later.
3. Confirm the Officer’s Authority
Verify whether the officer who issued the notice is authorized to handle your case. The notice should contain this information. If in doubt, consult a senior officer for confirmation.
4. Cross-Verify Financial Figures
Carefully review any financial details mentioned. Compare them with your tax records and returns. Any discrepancies may support your position.
5. Review Similar Past Cases
If you’ve dealt with similar notices in the past, review how those situations were handled. You can also explore relevant case studies or legal precedents to support your current response—or simply use our platform at Ali Law Associates for expert assistance.
Final Thoughts
Receiving an FBR tax notice doesn’t have to be intimidating.
Understand the notice type, verify the details, respect deadlines, and maintain thorough records. Monitor the IRIS portal regularly and don’t hesitate to seek professional advice when necessary.