FBR Tax Notices: How to Deal with it? And the Way Forward
The Federal Board of Revenue (FBR) in Pakistan is putting up some efforts to improve tax collection and ensure everyone pays their fair share.
As a part of this move, now more and more people are starting to receive notices from the FBR. Either in the form of email or SMS.
It might feel stressful at first, but don’t worry. When you understand why these notices are sent and how to respond it appropriately, then it becomes much easier to handle.
This guide will walk you through what FBR notices mean and how to deal with them calmly and confidently.
How the FBR Contacts You and Why It Matters?
To manage your taxes well, it’s important to know how the Federal Board of Revenue (FBR) gets in touch with you. They use a mix of old-school and digital methods. Here’s what to look out for:
1. Paper Notices (Postal Mail)
Even in the digital age, FBR still sends official paper notices to your registered mailing address. That’s why it’s important to keep your address up to date in their records. If you move somewhere else, update it right away, so you don’t miss anything important.
2. Email Notifications
FBR also sends emails to the email address you gave during registration. These emails might include notices or important updates. Make sure you regularly check this inbox, ideally daily or at least a few times a week.
3. SMS Alerts
For quick updates and urgent messages, FBR uses text messages. These go to your registered phone number. Again, make sure your number is current so you don’t miss anything time-sensitive.
4. IRIS Portal (Online Account)
IRIS is FBR’s online platform where you can find everything; filed returns, payment history, and official notices. Try logging in at least twice a month to check for new messages or pending actions. Staying on top of this can help you avoid problems before they start.
Understanding Different Types of Tax Notices in Pakistan
The Federal Board of Revenue (FBR) sends out different types of tax notices depending on the reason. Here’s a quick overview of the most common ones:
1. Monitoring of Taxes – Rule 44 Notices
These are sent to businesses and individuals who are supposed to deduct and deposit taxes on behalf of others (called “withholding agents”).
You’ll be asked to submit proof of compliance, and often a hearing follows. If the FBR finds that taxes were not properly paid, they’ll issue a tax demand notice under Section 137.
2. Audit Notices – Section 177
This is an official request for a tax audit.
You’ll need to provide documents like financial statements, ledgers, contracts, and tax certificates.
If something doesn’t add up, the FBR may raise a tax demand under Section 137.
3. One-Off Notices
These are sent when the FBR wants information about a specific transaction, like a property purchase or a gift.
They already have some info and want you to explain or submit related documents.
4. Advance Tax Notices – Section 147
These notices require advance tax payments.
They’re mandatory for companies and AOPs, and sometimes for individuals based on their income or turnover.
5. Notices to File Returns – Section 114
If you haven’t filed your tax return on time, this notice reminds you to do so and avoid penalties.
6. Notice for Incomplete Return – Section 120(3)
This notice means your tax return is missing something important, like signed financial statements.
You’ll be given a deadline to fix it. If you don’t, the return may be rejected and penalties under Section 182(1) could apply.
So, Before You Reply, Here is What You Need to Do First?
1. Note the Dates & Keep Proof
Make sure to check two things:
- The date the notice was officially issued
- The date you actually received it
Keep proof of when it arrived (like a postal receipt, email timestamp, or SMS screenshot). This can be helpful later, especially if you need to appeal or explain a delay.
2. Check the Deadline & Ask for More Time (If Needed)
Look for the response deadline mentioned in the notice.
Can you realistically prepare a full response by then? If not, you can request an extension. Just write to the concerned officer and explain why you need more time. Rushing could lead to mistakes.
3. Make Sure the Officer Has Authority
Check if the FBR officer who sent the notice is authorized to deal with your case. You’ll usually find this info in the notice itself. If anything seems off, ask for clarification from a senior officer.
4. Double-Check the Numbers
Carefully go through any amounts or figures mentioned in the notice. Compare them with your own tax returns, records, and documents. If you spot any errors, those could help support your case.
5. Look at Similar Past Cases
If you’ve dealt with a similar issue before, review how you handled it and what the outcome was. You can also search for relevant case law or examples online to see how similar issues were resolved. It can help you decide how to respond this time.
Concluding Remarks:
An FBR tax notice doesn’t have to be overwhelming.
Understand the notice type, verify details, meet deadlines, and keep your records updated. Regularly check the IRIS portal and respond promptly with professional guidance if needed.
Turn notices into opportunities for compliance and financial clarity with a calm and informed approach.